The Bank of Uganda (BoU) has made public its plans to lower cheque value limits for all transactions requiring cheques in the country. In an intentional move to promote Electronic transactions (e-transactions), the central bank of Uganda has announced new rates that will take effect from the 15th of January, 2022.
All around the world, the use of cheques is rapidly becoming outdated. The Central Bank of Uganda has sought to eliminate the dependence on the paper instrument or physical cash. The new set limits will promote e-transactions and the decline in the use of cheques over time. According to BoU's Governor Emmanuel Mutebile, "The public is urged to use alternative electronic payment options, such as the real-time Gross Settlement System (RTGS), Electronic Funds Transfer (EFT), and mobile money, among others. Banka of Uganda and the supervised financial institutions will continue to sensitize the public on the alternative payment options". The revised cheque limits will affect the Uganda Shillings and foreign currencies like the US Dollar, Pound Sterling, Euro, and Kenyan Shilling.
As Uganda's banking industry seeks to digitalize its ecosystem, the move by the Central Bank is applauded by all banking institutions across the country as BoU's decision promotes the shift and its dedication to aiding the general public to adapt to these changes.
Uganda in focus
Population: 45.74 million in 2020 as compared to 44.27 million in 2019
GDP: $37.37 million compared to $35.17 million in 2019
GDP per capita: $817 in 2020 compared to $794 in 2019
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