By Selloane Ntshonyane
- The South African Social Security Agency says the extension gives more time to fix challenges and ensure a smooth handover of grant payments.
- Grant recipients will continue receiving money in their bank accounts, including Postbank accounts, with no need to change banks.
The South African Social Security Agency (Sassa) has announced a three-month extension to its agreement with Postbank.
The Master Services Agreement (MSA) was due to end soon, but on 1 October Sassa confirmed it would give Postbank more time.
Officials said the move is to allow government leaders and both entities to resolve challenges and agree on a clear way forward.
The contract has for years guided how social grants are paid, but many of its original services, such as cash pay points and over-the-counter payments, are no longer in use.
Even though the contract is ending, Sassa stressed that beneficiaries will not be affected. Payments will still be made directly into bank accounts, including Postbank accounts.
Beneficiaries do not need to change banks unless they choose to.
This comes after concerns from political parties and community groups that millions of recipients may face higher banking costs or problems accessing money, especially in rural areas.
Sassa spokesperson Paseka Letsatsi said the extension will make sure the transition happens smoothly. He added that the public will be kept updated.
Pictured above: A woman with a Sassa card.
Image source: Wappoint
