Bank of Uganda cuts interbank cheque value limits by half from January 1 2027

The Bank of Uganda has published FAQs confirming that, from January 1, 2027, it will reduce the maximum value of cheques processed through the interbank clearing system. The measure halves the current limits across the listed currencies and forms part of a strategic transition to a cash-lite economy under the national digitization agenda. Under the new caps, interbank cheque limits will fall from UGX 10 million to UGX 5 million, USD 2,750 to USD 1,375, EUR 2,250 to EUR 1,125, GBP 2,200 to GBP 1,100, and KES 300,000 to KES 150,000. Any cheque above those values presented from January 1, 2027 onward will not be honored and will be returned to the sender. The limits do not apply to intra-bank transactions where both the drawer and payee hold accounts at the same financial institution, because those transactions are processed internally rather than through the national interbank clearing house infrastructure. For payments above the new limits, the central bank is directing users to electronic alternatives including the Real Time Gross Settlement System, Electronic Funds Transfers, Mobile Money and other licensed digital payment solutions. The Bank of Uganda said there is a six-month window from the announcement date for the public to adjust to the change and to present cheques above the new limits for payment before the policy takes effect.