The Bank of Uganda (BoU) has announced new over-the-counter cash withdrawal limits that will take effect on 1 January 2027, in a move aimed at encouraging greater use of digital payment systems.
The new limits will apply to all accounts held with supervised financial institutions. Individual account holders will be allowed to withdraw up to UGX 50 million per day and UGX 250 million per week. For corporate and business accounts, the limits have been set at UGX 500 million per day and UGX 2.5 billion per week.
The central bank said the limits will not affect transactions conducted through digital payment platforms such as the Real Time Gross Settlement (RTGS) system and Electronic Funds Transfers (EFTs).
To help the public prepare for the changes, BoU will launch a nationwide awareness campaign from July 2026 to educate consumers on the new requirements and the available digital payment options.
The Bank acknowledged that some sectors still rely heavily on cash and has directed supervised financial institutions to identify customers using risk-based profiling, process requests for exemptions where necessary, and continue promoting digital payment channels, including RTGS, EFTs and mobile money bank-to-wallet transfers.
BoU said the decision follows a steady rise in electronic transactions over the past several years. Data from its Automated Clearing House shows that the share of electronic credit transfers increased from 87.71% in FY2017/18 to 93.53% in FY2025/26, while the value of those transactions grew from 79.33% to 93.00% over the same period.
The Bank also noted that mobile money transactions have been growing by an average of 25% annually since FY2020/21, reflecting increased public confidence in digital payment systems. According to the central bank, the new withdrawal limits are intended to support a more efficient, secure and modern payments ecosystem while maintaining flexibility for sectors that continue to depend on cash.
