Frequently Ask Questions

Faqs

Have a look at list of our most popular Frequently asked questions & answers:

Agent Banking is an extension of banking services where transactions are carried out through an agent appointed by the Financial Institution.

Agent Banking services enable you to access and enjoy banking services conveniently at your door step.

The agents are closely monitored by the bank to ensure the security of your funds. Banking at an agent’s premises is as good as banking at any bank branch.

An agent is a person that has been recruited by a Financial Institution (FI) and has been approved by Bank of Uganda to carry out agent banking permitted services on behalf of the FI.

Any of the following entities qualify to be an agent:
 Registered Sole Proprietors;
 Registered Partnerships;
 Limited Liability Companies;
 Cooperative Societies;
 Microfinance Institutions;
 Any other entity approved by the Central Bank.

Any of the entities listed above must have operated a bank account with a financial institution licensed by the Central Bank for a minimum of 12 months prior to applying as an agent and also have the following:
a. A licensed business..
b. Have been engaged in the licensed business for at least twelve months.
c. A physical address.
d. Have adequate and secure premises.
e. A clean criminal record.
f. And any other requirements as will be determined by the principle bank the prospecting agent is applying to.

Agent banking benefits a range of stakeholders. i.e. Existing Financial Institution customers will have increased touch points making access to banking services more affordable and convenient.
The under-served/ under/unbanked gain convenient access to financial services in their own communities. Financial institutions reach a vast new customer segment, reduce the cost of delivering financial services, relieve crowds in bank branches and establish presence in new areas.
Agents increase their sales volumes and have an opportunity to develop deeper relationships with the customer..

Agents shall be branded, and given a particular Agent Code by the Bank. They will also obtain approval from BOU prior to being on boarded.
You can also confirm by calling the help desk number which will lead to the principal bank or Agent Banking Company

An agent may provide any of the following services in conducting agent banking-

(a) Collection and forwarding of information and supporting documents for account opening or applications for payment instruments;

(b) Cash deposit and cash withdrawal;

(c) Bill payments;

(d) Money transfers;

(e) Facilitating disbursement and repayment of loans;

(f) Receive and forward documents in relation to loans and leases and any other permitted products.

g) Payment of retirement and social benefits;

(h) Account balance inquiry;

(i) Provide account statements;

(j) Provide a communication and distribution channel for the Financial institution;

(k) Any other activity as the Central Bank may approve.

i. offer financial institution business on its own accord, except where it is the agent’s principal business as at the time of engagement;
ii. continue with the agency banking where it has a proven criminal record involving fraud, dishonesty, integrity or any other financial impropriety;
iii. provide, render or hold out to be providing or rendering any banking service which is not specifically permitted in the agency agreement;
iv. operate or carry out a transaction when the system is down or when there is any communication failure in the system, or in the customer’s absence;
v. carry out a transaction when a system generated receipt or acknowledgement of the transaction cannot be generated;
vi. charge fees directly to customers;
vii. undertake cheque deposits or encashment of cheques;
viii. distribute cheque books;
ix. distribute debit cards, credit cards or PIN mailers;
x. conduct foreign exchange transactions;
xi. subcontract other persons to provide agent banking services;
xii. provide agent banking services at a location other than the physical address of the agent;
xiii. open accounts, grant loans or advances or carry out any appraisal function for purposes of opening an account or granting of a loan or any other facility except as may be permitted by any other written law to which the agent is subject; or
xiv. Be a guarantor to the financial institution’s clients

Transacting at an Agent location is very secure and therefore you have no reason to feel uneasy about visiting an Agent. Further to this, after every successful transaction, you will receive:
 An SMS confirmation of the transaction that includes a reference number in case of any queries (This is for customers that transact using the Agent Banking App on their phones)
 A printed receipt confirming the status of the transaction (This is for customers that transact through the POS terminal/ device).

Yes, agent banking is governed under the Financial Institutions Act 2016 (as amended) and Agent Banking Regulations issued by Bank of Uganda and gazetted in July 2017.

Yes, Agent Banking Regulations 2017 must be read together with other relevant policy documents, guidelines or circulars that have been issued by the Bank

The FIA Act (Law) takes precedence. All other guiding frameworks are however premised on the law