Centenary Bank has cancelled all Personal Identification Numbers (PINs) which implies that customers cannot make any withdrawals over automated teller machines (ATM).
Troubles for customers started on Monday, when withdrawals were limited to sh100,000. Some customers say they were only able to access sh50,000 before the ATM cards were cancelled.
According to inside sources, the bank could have lost a significant amount of money due to ATM fraud over the long weekend that started on Friday, Independence Day.
However, Fabian Kasi, the Centenary Bank managing director dismissed talk of fraud as baseless.
“We are upgrading our system, and have deactivated all PINs. Customers that want to use the ATM should come with valid identification documents at their convenience and we will give them a new PIN.
“It is a quick process. Otherwise, customers are free to use the counter or our Centemobile service which is well and good,” Kasi explained.
A 2012 survey by Deloitte indicates that Ugandan banks lose up to sh12b annually to fraud while sh118b is lost by banks in the East African region.
However, the incidents are hardly reported since banks fear losing credibility.