Uganda’s central bank has imposed new limits on over-the-counter cash withdrawals and slashed cheque transaction thresholds in a sweeping push to accelerate the country’s transition to a cashless economy.
In a May 29 circular sent to commercial banks, credit institutions, and microfinance deposit-taking institutions, the Bank of Uganda (BoU) said individual customers will only be allowed to withdraw up to UGX50 million ($13,700) daily and UGX250 million ($68,500) weekly in cash over the counter. The new rules will take effect from January 1, 2027.
Businesses and corporate customers will face daily withdrawal caps of UGX500 million ($137,000) and weekly limits of UGX2.5 billion ($685,000).
The measures mark the clearest signal that Uganda’s financial regulators want to reduce the economy’s reliance on cash and move transactions onto digital payment rails such as mobile money, internet banking, and real-time settlement systems.
“These interventions align with our strategic commitment to fostering a modern, digital-first financial landscape by encouraging a shift from traditional paper- based instruments to secure electronic channels,” BoU said in the circular.
Read more: https://techcabal.com/2026/06/02/ugandas-central-bank-caps-cash-individuals-businesses/
