This document summarizes the key aspects of the Uganda Code of Good Banking Practice. It outlines the objectives of the code, which are to set standards for fair dealings with customers, ensure customers understand banking services, promote trust in the banking system, and maintain high professional standards. It also describes some of the fundamental principles that banks agree to follow, such as avoiding conflicts of interest, treating all customers equally, safeguarding deposits, acting fairly, and maintaining confidentiality. Additionally, it covers practices related to opening and closing accounts, terms and conditions, interest and fees, statements, checks, lending, debt collection, and handling customer complaints.

1. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
Banker - Customer Relationships
Outline of Bank Services
Types of Accounts
Know Your Customer (KYC)
Savings and Fixed Deposit Accounts
Cheques, Money Transmission, and Other Payment Mechanisms
MODULE COVERAGE
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Code of Banking Practice
Plastic Cards and Electronic Banking

2. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
What is a Code of Banking Practice?
The code is a voluntary standard of acceptable conduct which sets standards for its
members to observe. The Code of Banking Practice stipulates the practice for
banks to follow when dealing with customers. Although it is voluntary, once
adopted by a bank, it becomes contractually enforceable.
Useful information on a range of banking matters in the Code of Banking Practice
normally includes:
• Banker and customer relationships in business
• Disclosure of costs, product features, legal and other implications of using the
bank’s products
• Conduct of the bank towards customers
• Provision of documents and other information in a timely way to customers
• Contractual enforceability of statutory obligations
• Debt collection provisions, including the related fairness to customers
• Complaint handling procedures
• Dispute resolution
• Financial hardship handling
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3. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
Uganda Code of Good Banking Practice
The Uganda Code of Good banking Practice covers the relationship between
Banks and their Customers in respect of services offered by UBA (Uganda
Bankers Association) member commercial banks.
They include, but may not be limited to maintenance of current, savings and
other deposit accounts, overdrafts and loans and other services as from
time to time individual member banks may choose to offer.
Code of Good Banking Practice in Uganda
• The code of Good Banking Practice has been drawn up by the Uganda
Bankers’ Association (UBA) to guide all member Banks of the UBA in their
relationship with their customers where appropriate.
• It is a voluntary code that allows competition and market forces to operate
to encourage higher standards for the benefit of customers. The code will
be reviewed from time to time as may be found necessary.
• All institutions subscribing to this code will ensure that their staff are
aware of it and will make it available to their customers upon request. Any
member Bank may observe a higher standard if it so wishes.
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4. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
Objectives of the Code of good Banking Practice
The objectives of the code are:
i. To set out the standards of good banking practice which member banks of
the UBA will follow in their dealings with their customers.
ii. To ensure that Banks will act fairly and reasonably in all their dealings with
their customers.
iii. To enable Banks to help their customers understand how their accounts
operate and give them a good understanding of Banking services.
iv. To promote confidence in the integrity and security of the Banking system.
v. To promote and maintain high standards of professional and moral conduct
recognized within the banking industry.
Banks will conduct their business with uncompromising integrity and fairness so
as to promote complete trust and confidence in the Banking industry. In
meeting this fundamental objective, banks will conduct their relationships
with the authorities, their clients, competitors and the community at large,
in the manner described below.
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5. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
AUTHORITIES:
Banks will comply with all relevant Laws and Regulations that will
be in force from time to time in the Republic of Uganda.
FUNDAMENTAL PRINCIPLES:
Banks will observe the following fundamental principles in dealing
with their customers.
i) Avoid conflicts of interest
ii) Offer their services irrespective of race, religion or gender
iii) Safeguard deposits
iv) Act fairly and reasonably in all their dealings with their
customers
v) Respect confidentiality
vi) Recognize the need to ensure the reliability of their systems and
technology.
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6. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
OPENING AND CLOSING OF ACCOUNTS:
To assist in protecting their customers, members of the public and themselves
against fraud and other misuse of the banking system, banks, when opening
accounts, will reasonably satisfy themselves as to the identity of the applicants,
through the production of relevant Identification (ID) documents and acceptable
references, or the seeking of information from another bank, Credit Reference
Bureau (CRB) when and if applicable.
When opening A/Cs, all banks are to observe the minimum guidelines
Subject to contractual and other legal obligations:
• Banks may close accounts or discontinue service at any time, although reasonable
notice will be given unless there are exceptional circumstances;
• Customers may close accounts at any time subject to settlement of any obligations
to the Bank.
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7. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
TERMS AND CONDITIONS:
Banks should ensure that current terms and conditions governing their
banking services, which may vary from time to time at their discretion, are
available to their customers on request. The said terms and conditions
should be expressed in plain language to enable the prospective customer
understand fairly the relationship he/she is entering into with the Bank.
Banks will encourage their customers to acquaint themselves with and
abide by the current terms, conditions and obligations relating to their
financial dealings with their banks.
INTEREST AND CHARGES:
Banks will advise their customers through an appropriate medium of the
following information when accounts are opened, when requested or,
with due notice when required, when changes are made to the
information regarding among others:
i) the rates of interest payable to or by them;
ii) any service/administration fees and other applicable charges;
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8. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
iii) the method of calculation of interest and charges and the
frequency at which these are debited and/or credited to customers’
accounts.
iv) Charges for services not specified at the time of opening the
Account in the published tariffs will be advised on request or at the
time the service is offered.
v) Any changes in the tariffs given to the customer i.e. details of any
charges will be made known to the customer in an appropriate
manner.
vi) A customer intending to borrow money will be advised in clear
terms the level and type of interest rates applicable.
vii) Banks shall advise borrowing customers on all other charges.
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9. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
STATEMENTS:
Banks will provide customers with or customers may obtain periodic written
statements which will contain:
(i) the dates, amounts and brief details of all transactions,
(ii) interest debited or credited.
CHEQUES ACCOUNTS
To assist in protecting their customers, members of the public and themselves
against fraud and other misuse of the banking system, Banks will take care in
issuing cheque books and will encourage customers to:
i) Exercise care and safety precautions in the keeping of their cheque books and in
the issuing of cheques;
ii) Acquaint themselves with the guidelines printed in cheque books regarding the
drawing and crossing- of cheques; and
iii) Ensure that the correct number of leaves are contained in the cheque books
when collected.
CREDIT FACILITIES:
When considering applications for credit, banks will have regard to purpose for
borrowing, the applicants’ character and credit worthiness, their ability to repay
borrowing and to pay interest and charges, and any security offered.
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10. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
DEBT COLLECTION PRACTICES:
When dealing with customers in default, banks will ensure that fair debt
collection practices are observed.
CONFIDENTIALITY:
With the following exceptions, banks will at all times observe a strict duty
of confidentiality regarding customer information:
i) Where the customer requests or consents to disclosure.
ii) Where the bank is compelled to disclose information by Law.
iii) Where, in protecting the interest of Banks, or where there is a duty to
the public to do so, information is given, for example:
a. in response to status enquiries from other banks;
b. to surety, guarantor or cessionary; and
c. when taking steps to recover debts.
iv) Where information is given within a banking group in order to maintain
existing, and establishing future relationships with customers.
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11. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
COMPLAINTS BY CUSTOMERS:
(i) Every Bank will establish adequate procedures’- for handling of customers’
complaints
(ii) At the time of opening an, account, customers should be made aware of the
complaints handling procedure.
(iii) Should a customer or any, aggrieved party have any cause to complain about
Bank services, details in the first instance should be made in writing to the Chief
Executive of the bank concerned. Should this procedure not satisfy the matter, the
complainant/ aggrieved party has a right to forward the complaint in writing to the
Uganda Bankers’ Association through the current Chairman, c/o the Executive
Secretary who in turn will refer it to a UBA Sub select Committee.
(iv) The Sub Committee will be composed of UBA representatives not normally
exceeding three but excluding the bank(s) concerned plus one member from
either a legal profession or a recognized Auditor or both as may be appropriate at
the ‘Sole option of UBA. The Committee will sit from time to time and work out a
fair assessment, which will be made known to all the parties concerned.
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12. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
SAFETY AT BANK PREMISES
Banks will take all reasonable steps to protect their customers and the public
whilst in bank premises.
MARKETING OF BANKING SERVICES
Banks will compete for business based entirely on merit and, in marketing their
services, will act responsibly and prudently and ensure that advertisements are
fair and reasonable, do not contain misleading information and do not make
negative inference or reference to other banks in their promotional campaigns.
COMMUNITIES
Banks will play a role of fostering social and environmental needs.
UBA STATEMENT AGAINST MONEY LAUNDERING
Uganda Bankers’ Association is committed to fighting money laundering and
complying fully with the letter and spirit of money laundering laws in all parts of
the world and guiding regulations as established by regulatory authorities from
time to time. All Bank employees will accept accountability and responsibility for
observing these laws and policies.
Any instances of suspicious transactions will be reported to the appropriate
authorities. Any instances of suspicious transactions will be reported to the
appropriate authorities
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13. THE UGANDA INSTITUTE
OF BANKING &
FINANCIAL SERVICES
UIBFS
ISO 9001:2008 CERTIFIED
END
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