Changes BOU has directed banks to effect starting January 15

Banks have until January 14 to clear cheques of up to UGX20m, USD5, 500, Euro 4,500, GBP 4,400 and KES 600,000, respectively.

Kampala—22, December 2021: It is remaining nine days to the beginning of 2022. Next year marks 21 years since the beginning of the 21st century on 1 January 2001.

Like previous years: 2019, 2020 and 2021, the forthcoming year will assuredly also remain a “pandemic year” as Covid-19 pandemic continues to destabilize trades, business, economies and individuals.

With the emergence of the Omicron variant, nations, rich or poor, are now devising means to contain the pandemic. Some governments and financial institutions are working together or offering affordable credit facilities to [affected] businesses and companies to help them stay afloat.

Now, here is what you wanted to read! According to the directive by the Bank of Uganda (BOU) to all banks in the country, as communicated on Wednesday, December 22 by the Diamond Trust Bank (DTB) Uganda, the regulator, BOU, has directed as below:

“As per BOU guidelines from 15, 1 2022 clearing, cheques will be honored if they comply with new limits. UGX10million, USD2, 750, EUR2, 250, GBP2, 200, KSE300, 000.”

Banks have until January 14 to clear cheques of up to UGX20m, USD5, 500, Euro 4,500, GBP 4,400 and KES 600,000, respectively.

The new directive means no bank will have to clear a cheque with a higher value as prescribed above from next year.

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However, according to the Governor of Bank of Uganda, Emmanuel Tumusiime-Mutebile (Prof.), the new limits do not apply to over-the-counter cheque withdrawals, nor do they apply to cheque payments that are made within the same bank, that is, where the cheque issuer and the recipient hold accounts with the same commercial bank.

“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,” he said in a statement dated July 21.

He added that “Bank of Uganda and the supervised financial institutions will continue to sensitise the public on the alternative payment options during the six-month window before the new limits come into effect”.