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Bank of Uganda lowers cheque value limits

Saturday December 11 2021
Uganda’s Central Bank

Uganda’s Central Bank has announced that it will lower cheque value limits for all transactions by cheque in the country ostensibly to encourage e-payments. FILE PHOTO | MORGAN MBABAZI

By JONATHAN KAMOGA

Uganda’s Central Bank has announced that it will lower cheque value limits for all transactions by cheque in the country ostensibly to encourage e-payments.

According to a statement from the bank signed by Governor Emmanuel Mutebile, the new rates will take effect on January 15, 2022.

“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 sensitise the public on the alternative payments options,” the statement read. 

The central bank warned that cheques with amount way higher than the set will not be armoured.

The new rates will, however, not apply to over the counter cheque withdraws or cheque payments made within the same bank.

The amount of Uganda shillings supposed to be withdrawn by cheque has fallen from Ush 20 million ($5,645) to Ush 10 million ($2,822).

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That of the US dollar has fallen from $5,500 to $2,750 while that of Euro is now € 2,250 down from € 4,500.

The pound is from £ 4,400 to £ 2,200 while the Kenya shilling has fallen from Ush 600,000 ($169.36) to Ush 300,000 ($84.68).

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