Bank of Uganda Introduces Over-the-Counter Cash Withdrawal Limits Starting 2027

The Bank of Uganda (BoU) has announced new limits on over-the-counter cash withdrawals as part of its efforts to promote digital payments and reduce reliance on physical cash transactions.

The new limits will take effect on January 1, 2027, and will apply to all accounts held with financial institutions supervised by the central bank.

Under the new framework, individuals will be allowed to withdraw a maximum of UGX 50 million per day and UGX 250 million per week over the counter. Corporate and business accounts will have a daily withdrawal limit of UGX 500 million and a weekly cap of UGX 2.5 billion.

According to the Bank of Uganda, the move is in line with the country’s e-payments strategy and reflects the growing preference for electronic payment methods.

“Payments have undergone a digital shift, with electronic credit transfers becoming the leading payment method across the financial sector.”

The central bank noted that the withdrawal limits will not affect transactions conducted through digital channels such as Electronic Funds Transfers (EFTs) and the Real Time Gross Settlement (RTGS) system.

BoU said data from the Automated Clearing House shows a steady increase in the use of electronic payments over the last several years. The share of transaction volume processed through electronic credit transfers increased from 87.71 percent to 93.53 percent, while the value of such transactions rose from 79.33 percent to 93 percent.

Mobile money has also continued to register strong growth, accounting for an average of 25 percent of transactions annually since the 2020/21 financial year.

Recognising that some sectors of the economy remain heavily dependent on cash, the central bank said financial institutions will be allowed to seek exceptions where necessary.

“The Bank of Uganda may waive the limits for certain transactions or sectors upon request from supervised financial institutions.”

To support implementation of the new policy, BoU will launch a nationwide public awareness and consumer sensitisation campaign beginning on July 1, 2026. Financial institutions will also be required to develop risk-based customer profiles and advise customers on alternative digital payment options.

The central bank believes the changes will help accelerate Uganda’s transition towards a more efficient, secure and modern payments ecosystem while still providing flexibility for sectors that continue to rely on cash transactions.