Kampala- Thursday, September 16, 2021
National Payments Systems (NPS) Bill 2020
Uganda Bankers Association (UBA) has learnt of media reports to the effect that the Government plans to take depositors idle cash on dormant bank accounts under the new National Payments Systems Bill 2020 and that upon implementation, huge sections of account holders are likely to lose what government has pronounced as ‘idle money’ in bank accounts.
The said media report is misleading and works contrary to the efforts being made towards driving financial inclusion.
The National Payment Systems Act 2020 is a key piece of legislation in Uganda which among others;
In this Act, under Section 57; Sub Section (1), it is stated that an electronic money account that does not have a registered transaction for nine (9) consecutive months will be considered dormant. This account could be a mobile money account or a bank account. The same Act further highlights additional procedures that are then followed before unclaimed funds are finally reallocated to a consolidated fund and the subsections have been extracted as below;
The practice of transferring balances on dormant accounts to the Central Bank unclaimed balances account is a standard practice that has been in existence already and is not new.
For bank accounts, the period for declaration of dormancy is two (2 years) and the period for declaration of assets as unclaimed after dormancy (PoDAU) is eight (8) years meaning a customer has up to 10 years to reclaim their balances after dormancy.
As a sector, we believe that the enactment of the National Payments Systems Act, 2020 will bring about more positive changes in the payment space and therefore call upon bank customers and the general public to disregard the sentiments portrayed in the media reports referred to above.
The Central Bank of Uganda will release an official statement in the same regard and provide further guidance.
Uganda Bankers Association remains committed to contributing to the development and growth of the economy.
Communications and Corporate Affairs