BOU sets cash withdrawal limits for individuals, businesses

KAMPALA - The Bank of Uganda (BOU) has introduced limits on how much cash can be withdrawn over the counter from financial institutions it supervises, starting January 1, 2027.

The central bank has capped daily withdrawals from individual accounts at sh50m and from corporate or business accounts at sh500m.

The weekly withdrawal cap for individuals has been set at sh250m, while businesses will be limited to sh2.5b.

The measures are contained in a circular issued to chief executive officers of commercial banks, credit institutions and microfinance deposit-taking institutions, dated May 29, 2026.

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

The central bank noted that the interventions align with its strategic commitment to fostering a modern, digital-first financial landscape by encouraging a shift from traditional paper-based instruments to secure electronic channels.

BOU also introduced new cheque transaction limits, reducing the maximum value of interbank cheques from sh10m to sh5m.

US dollar cheque limits have been lowered from $2,750 to $1,375. Euro cheque limits have been reduced from €2,250 to €1,125, while pound sterling cheques have been cut from £2,200 to £1,100. Kenya shilling cheques have also been reduced from KSh300,000 to KSh150,000.

The circular, issued by the BOU’s office of the director of national payment systems, said the new limits, which take effect from January 1, 2027, will allow sufficient time for existing instruments to be presented for payment.