Will your bank close your SACCO's account? The RFSP directive explained
Bank of Uganda has directed regulated financial service providers to transact only with licensed large SACCOs from the compliance date. Here is what that means in practice, sourced and explained calmly.
What the directive says
Alongside the large-SACCO licensing requirement, Bank of Uganda has directed regulated financial service providers — banks, insurers, and payment gateway providers — to transact only with licensed large SACCOs once the compliance date takes effect. Media reporting describes this as regulated providers being required to refuse new transactions with an unlicensed large SACCO once that date arrives (The Cooperator News; BoU, official statement for the compliance date itself). This is reported as at the last-verified date on this page — check with your bank or Bank of Uganda directly for how it applies to your SACCO's specific relationship.
What this does — and doesn't — mean in practice
The directive is aimed at regulated financial service providers, not directly at SACCOs. A large SACCO's own obligation is to hold a Bank of Uganda licence once it crosses both thresholds; a bank's obligation, per this directive, is to check that a large SACCO counterparty holds one before continuing to transact with it. Reporting describes the mechanism as affecting new transactions with unlicensed large SACCOs from the compliance date, rather than describing an automatic account closure — exact treatment of an existing account and relationship is a question for your bank and, where needed, Bank of Uganda directly.
What a SACCO above the thresholds can do
- Confirm your SACCO's position against both thresholds — see the threshold checker.
- If above both thresholds, start the licence application — see the application checklist.
- Talk to your bank directly about how the directive affects your specific account and settlement relationship; your bank's compliance team is the authoritative source for its own posture under the directive.
- If below both thresholds, this directive does not apply to your SACCO.
Where SenteRail fits
SenteRail is a technology provider, not a lender, bank, or licensed financial institution, and does not hold a Bank of Uganda licence on a SACCO's behalf. What the platform can do is keep a SACCO's voluntary savings and institutional capital figures current in the ledger, so a board can check its position against the thresholds and act on its own timeline rather than a manual reconciliation exercise.