By Lehlohonolo Lehana.
The South African Social Security Agency (SASSA) has moved to assure the millions of grants beneficiaries that they will receive their payments amid ongoing discussions over Master Service Agreement (MSA) with Postbank.
SASSA’s Master Service Agreement (MSA) with Postbank is set to expire on 30 September 2025.
Postbank clarified that while the agreement requires periodic reviews, “it has no end date” and its presence or absence does not affect social grant payments.
The bank emphasised that beneficiaries should not be pressured into opening new bank accounts or changing payment methods.
However minister of Social Development Sisisi Tolashe stated that SASSA had “decided to exercise the exit clause of the Master Service Agreement (MSA) with Postbank due to operational reasons and changes within the payment environment.”
She explained that since the termination of cash pay points and over-the-counter services at South African Post Office (SAPO) branches, and the removal of SAPO as a recognised grant payment channel, the agreement with Postbank “no longer has any significant relevance.”
Tolashe added that beneficiaries wishing to switch to another bank would still be supported through existing processes.
In a statement on Friday, Sassa confirmed that Postbank remains one of its significant partners in the sector.
The agency said the relationship between the two entities extends beyond the master services agreement (MSA).
“Therefore, the approximately two million Sassa beneficiaries receiving their social grants through Postbank are not affected by any potential changes to the MSA,” the statement read.
Sassa CEO Themba Matlou appealed to the public and beneficiaries not to panic over the ongoing discussions between the two entities.
“As Sassa, we can emphatically state that it is business as usual for us. No eligible beneficiary is set to lose their grant irrespective of changes that may occur with our partners. We are working tirelessly to safeguard the grants of our clients,” Matlou said.
Matlou further said that Sassa views Postbank in the same way as other banks.
He noted that the Social Assistance Act gives beneficiaries the right to choose where their social grant is paid.
“Sassa views Postbank like all other banks and Social Assistance Act regulations give social grant beneficiaries the right to choose a bank where they want to receive their grant,” he added.