The Bank of Uganda (BoU) has announced strict new limits on over-the-counter cash withdrawals, capping daily transactions for individual account holders at UGX 50 million starting next year.
The Central Bank unveiled the sweeping policy on Wednesday as a core pillar of its national electronic payments strategy. Effective January 1, 2027, individual account holders face a daily withdrawal ceiling of UGX 50 million and a weekly cap of UGX 500 million. Corporate and business entities will operate under a daily cash withdrawal limit of UGX 250 million, while their weekly threshold stands at UGX 2.5 billion. Central Bank explained that the regulation reflects a massive countrywide shift toward digital transactions.
The regulatory body clarified that the new transaction ceilings will not affect electronic payment channels. The Real Time Gross Settlement (RTGS) system and Electronic Funds Transfers (EFT) remain entirely exempt from these limits. BoU data shows that electronic credit transfers currently lead national payment methods, with digital transactions posting continuous growth in both volume and value.
The Deputy Governor's office noted that the Central Bank will consider special exemptions for cash-dependent economic sectors upon direct request from commercial banks. Supervised financial institutions must obtain formal approval from the regulator before executing transactions that exceed the gazetted thresholds.
BoU also ordered all commercial banks to actively guide their clients toward digital alternatives, including mobile money bank-to-wallet transfers. The state aims to maintain a resilient, secure, and inclusive payment ecosystem to advance socio-economic transformation.
