Bank of Uganda to Cap Over-the-Counter Cash Withdrawals From January 2027 in Push Toward Digital Payments
The Bank of Uganda will impose strict daily and weekly limits on over-the-counter cash withdrawals starting January 1, 2027, as part of a broader strategy to accelerate the shift to electronic payments and reduce reliance on physical currency.
Under the new rules applying to accounts at supervised financial institutions, individual account holders will face a daily cash withdrawal cap of 50 million Ugandan shillings (about $13,500 at current rates) and a weekly limit of 250 million shillings.
Corporate and business accounts will be restricted to 500 million shillings daily and 2.5 billion shillings weekly.
The caps apply only to cash taken over the counter at bank branches or similar points. They do not affect digital payment channels, including the Real Time Gross Settlement (RTGS) system and Electronic Funds Transfers (EFTs).
Financial institutions may impose even tighter limits based on individual customer risk profiles. The central bank can also grant exceptions for specific transactions or sectors upon request from institutions.
Bank of Uganda officials have framed the policy as aligned with global trends and observed consumer preferences for electronic credit transfers.
“This is in line with the shift toward electronic settlement which the BoU has observed, characterized by consumer preference for electronic credit transfers,” the central bank has stated in communications outlining the measures.
To prepare the public, the Bank of Uganda launched a nationwide consumer sensitization and public awareness campaign on July 1, 2026. The campaign aims to inform customers about the upcoming limits and promote digital alternatives.
Six months into the formal transition period, the central bank and commercial banks have moved from planning into active implementation. The Bank of Uganda has begun reducing the volume of physical cash supplied to commercial bank branches, effectively drawing down currency in circulation ahead of the hard caps.
Supervised financial institutions, including commercial banks, credit institutions, and microfinance deposit-taking entities, have started risk-based customer profiling. Higher-risk or high-volume accounts are already receiving notifications of customized, lower day-to-day limits.
The accelerated move away from cash and paper cheques has raised cybersecurity concerns. The Uganda Bankers’ Association and local cybersecurity firms have highlighted increased risks as businesses migrate more activity onto electronic rails such as RTGS and EFT.
Institutions have responded by scaling up cyber threat mitigation measures for corporate clients.
At the same time, the Bank of Uganda is refining the framework for sector-specific exceptions. Discussions with banks focus on criteria for cash-intensive areas, particularly agricultural supply chains and artisanal mining, to ensure legitimate high-volume needs are not unduly restricted once the limits take full effect.
The policy forms part of Uganda’s longer-term financial sector e-payments strategy. Officials emphasize that the limits are designed to encourage safer, more efficient digital transactions while allowing flexibility for genuine cash requirements through risk-based assessments and approved waivers.
