Bank of Uganda Caps Cash Withdrawals in Drive Toward Digital Payments

Kampala, June 3, 2026 - The Bank of Uganda (BoU) has announced new limits on over-the-counter cash withdrawals, beginning January 1, 2027, as part of a broader strategy to accelerate digital payments, reduce dependence on cash, and modernise the country’s financial system.

Under the new regulations, individual account holders will be limited to cash withdrawals of up to Shs50 million per day and Shs500 million per week. Corporate entities and businesses will face higher thresholds, capped at Shs250 million per day and Shs2.5 billion per week.

The central bank said the policy marks a significant shift in Uganda’s payments landscape, aimed at increasing transparency in financial transactions and encouraging wider adoption of digital financial services.

According to BoU, the withdrawal restrictions will apply to all accounts held with supervised financial institutions. However, transactions conducted through electronic payment channels, including Real Time Gross Settlement (RTGS) transfers and Electronic Funds Transfers (EFTs), will not be affected.

Authorities say the decision was informed by changing consumer behaviour and the rapid growth of electronic transactions across the country, with digital payment systems increasingly preferred for their efficiency and convenience.

The central bank noted that electronic credit transfers have become one of Uganda’s most widely used payment methods, reflecting growing public confidence in digital financial services among individuals, businesses, and government institutions.

BoU acknowledged that certain sectors of the economy continue to rely heavily on cash transactions and said safeguards would be introduced to avoid disrupting legitimate business activities.

Under the guidelines, supervised financial institutions will be required to establish risk-based customer profiles that may allow for differentiated withdrawal limits depending on a customer’s transaction history and business activities.