The governor of the Bank of Uganda, Emmanuel Mutebile, has warned the public against dealing with financial institutions that are not recognised by the central bank.
He said checking the authenticity of institutions would safeguard the public against fraudsters and gift circles that want to fleece people of their money.
“Before you deal with any commercial bank, ensure that it is licenced and recognised by Bank of Uganda,” Mutebile said.
“Stop being persuaded by crooks, who tell you that they can create money for you from nothing,” he added.
Mutebile said Bank of Uganda was committed to ensuring that the financial sector is sound and safe.
He was addressing the business community at the opening of the Bank of Baroda Lira branch last Thursday.
On the high interest rate charged by most commercial banks, Mutebile noted that the central bank’s powers to control interest rates were taken away in 1992 when the economy was Liberalised .
He, however, urged banks to minimise their rates, saying high interest rates scare away potential entrepreneurs.
He said Bank of Baroda, which now has 10 branches in Uganda, should continue opening branches in areas where resettlement has taken place after the Lord’s Resistance Army (LRA) insurgency.
Bank of Baroda global chairman M.D. Malya said since the bank opened in Uganda in 1953, it had not stopped operations despite the insurgency of the 1970s.
Our aim is not to snatch customers from other banks but to offer better services and affordable products, Malya said.
The chairman of the Chamber of Commerce at Lira, Bosco Ogwang Edola, urged Bank of Uganda to open a currency centre in Lira, saying the area is strategically located in the north.
