By Tumwine Byaruhanga
Bank of Uganda has announced new over-the-counter cash withdrawal limits, capping individual account withdrawals at UGX 50 million per day and corporate or business accounts at UGX 250 million per day, effective January 1, 2027.
The Central Bank says the move is part of the financial sector’s e-payments strategy and reflects the growing shift to digital transactions across the country.
Under the new rules, individual account holders will be allowed to withdraw up to UGX 50 million per day and UGX 500 million per week over the counter.
Corporate and business accounts will have a daily cash withdrawal cap of UGX 250 million, while the weekly limit has been set at UGX 2.5 billion.
Bank of Uganda says electronic credit transfers are now the leading payment method, with digital payments continuing to grow in both volume and value.
The Central Bank clarified that the new limits will not apply to digital payment channels, including the Real Time Gross Settlement System and Electronic Funds Transfers.
Bank of Uganda also said some sectors that still depend heavily on cash may be considered for exceptions. Supervised financial institutions will be required to seek approval for such cases.
The Central Bank may waive the limits for certain transactions or sectors upon request from supervised financial institutions.
Financial institutions have also been directed to guide customers on available digital alternatives, including Real Time Gross Settlement, Electronic Funds Transfers and mobile money bank-to-wallet transfers.
Bank of Uganda says it will continue supporting an innovative, inclusive and resilient payments ecosystem that supports social and economic transformation.
