Grapevine

Cheque transactions drop to five-year low due to rising digital payments

Cheque payments have fallen by almost half in the five years to June 2024 due to increased uptake of digital payments, according to data contained in the latest Bank of Uganda Annual Report.

The report, which highlights several fundamentals both within and outside Bank of Uganda, indicates that during the 12 months to June 2024, the value of cheque transactions declined to Shs4.8 trillion, which was almost Shs3.1 lower than the Shs7.98 trillion in the same period ended June 2019.

The reduction, however, Bank of Uganda noted was “consistent with the interbank cheque value limits that took effect on January 15, 2022” to support electronic payments.

In 2022, Bank of Uganda reduced the cheque payment value limit to Shs10m from Shs20m.

Data further indicates that in the five years to June 2024 whereas the value of cheaque transactions has fallen by almost 39.8 percent, there has been a remarkable surge of 52.6 percent in payments conducted through electronic fund transfers (EFTs).