Bank of Uganda caps cash withdrawals,  slashes cheque limits in push for cashless economy

The Bank of Uganda (BoU) has announced sweeping changes to cheque transactions and over-the-counter cash withdrawals as it intensifies efforts to promote a cash-lite economy.

In a circular dated May 29, 2026, and addressed to chief executive officers of commercial banks, credit institutions and microfinance deposit-taking institutions, the central bank said it would reduce interbank cheque value limits and introduce caps on cash withdrawals made at banking halls.

BoU said the measures are part of its e-payments strategy and broader national digitalisation agenda.

"In line with the Bank of Uganda e-payments strategy, which aims to promote a cash-lite economy as part of the broader national digitalisation agenda, Bank of Uganda has reduced the interbank cheque value limits and introduced over-the-counter cash withdrawal caps," the circular reads.

Under the new arrangements, the maximum interbank cheque value in Uganda shillings will be reduced from Shs10 million to Shs5 million.

Dollar-denominated cheque limits will fall from $2,750 to $1,375, while euro cheque limits will drop from €2,250 to €1,125. 

The ceiling for pound sterling cheques will be reduced from £2,200 to £1,100, while Kenyan shilling cheque limits will fall from KSh300,000 to KSh150,000.

The central bank has also introduced cash withdrawal limits for customers transacting over the counter.

Individual account holders will be allowed to withdraw a maximum of Shs50 million per day and Shs250 million per week.

For corporate and business accounts, the daily withdrawal limit will be Shs500 million, while the weekly limit will be capped at Shs2.5 billion.

BoU said the changes are intended to encourage businesses and individuals to shift from paper-based and cash transactions to secure electronic payment channels.

"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," the central bank said.

The new limits will take effect on January 1, 2027, allowing time for existing instruments to be presented and processed.

The move is expected to accelerate the adoption of digital payments, including mobile money, electronic funds transfers and other cashless banking services.