Uganda: The Micro Deposit-taking Institutions Act 2003

This paper is the 'Micro Finance Deposit-Taking Institutions Act' as legislated by the Government of Uganda in 2003. It contains statutory provisions for carrying out the microfinance business in Uganda.

The significant contents of the first five sections are briefly summarized as follows:

• Interpretation of the application of this Act and definitions of the common terms used;
• The requirements for obtaining a license to operate a microfinance business;
• The restrictions on entities that are into this business;
• The norms for ownership and governance issues essential for any entity under the purview of this law;
• The issues related to the supervision of Microfinance Deposit-Taking Institutions.

The other sections of this paper deal with the following:

• Placing an institution under receivership and related provisions;
• Guidelines in the case of winding up/insolvency;
• Other significant issues such as the MDI Deposit Protection Fund etc.

The paper concludes by setting criteria for a person to manage, control or become a Director or hold substantial share-holding in a Microfinance Deposit-taking Institution.