Section 4 of the Bank of Uganda Act which stipulates the mandate of Bank of Uganda is silent on the regulation and supervision of payment systems. Similarly the provisions in the Financial Institutions Act 2004 pose limitations on the regulation and supervision of payment systems since the Act applies to deposit-taking institutions only.
Recognizing the benefits accruing from the recent technological developments in the financial sector, and being mindful of the need not to stifle innovations, Bank of Uganda put in place interim oversight measures to promote the development of payment systems in Uganda.