Postbank reassures social grant beneficiaries as MSA with Sassa remains secure
Postbank reassures millions of South Africans as its agreement with Sassa remains intact, ensuring continued access to social grants.
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In a significant development for millions of South Africans reliant on social grants, Postbank has announced that its Master Services Agreement (MSA) with the South African Social Security Agency (Sassa) will remain in effect without interruption.
“The agreement will continue unchanged until an Inter-Ministerial Committee (IMC) has been constituted and has deliberated on the matter. Accordingly, the MSA does not terminate on September 30, 2025,” said Postbank CEO Nikki Mbengashe.
“This brings certainty and reassurance to millions of social grant beneficiaries who will continue to use their Postbank black cards and Sassa gold cards with confidence, enjoying uninterrupted access to their grants and associated banking benefits.”
Mbengashe said Postbank is dedicated to safeguarding beneficiaries’ interests by guaranteeing their continuous access to social grants. These grants are vital to South Africa’s constitutional commitment to social protection for all citizens.
“The bank will continue to stand firmly with beneficiaries, safeguarding their welfare and access to dignified, safe and reliable banking services,” Mbengashe added.
This follows the recent Gauteng High Court, Pretoria, ruling in favour of Sassa, dismissing Postbank’s urgent application to halt the termination of the MSA.
Postbank filed an urgent application to prevent the termination of the MSA, an action that would lead to severe financial hardship for millions of social grant beneficiaries. The objective was to safeguard their constitutional rights.
Following the court judgment, Mbengashe expressed her concerns regarding the ruling, stating that it offers insufficient relief to the millions of social grant beneficiaries whose livelihoods and rights will be impacted by the termination of the MSA.
She noted that this termination was central to the relief sought through the application.
At the time, she said Postbank’s primary concern was protecting beneficiaries, an issue they believed had not been adequately addressed. As a state-owned bank mandated to serve, protect, and advance the interests of the most vulnerable, they maintained that this obligation required urgent consideration.
Postbank asserted that without immediate intervention to safeguard beneficiaries’ rights before September 30, 2025, the constitutional rights of millions were at risk of being infringed.
Sassa CEO Themba Matlou stated that all eligible grant beneficiaries with Postbank accounts will continue to receive their grants.
This is in accordance with Regulations 23(a) of the Social Assistance Act, which allows beneficiaries to choose their preferred account for grant payments. Therefore, the termination of the MSA does not affect those receiving grants via Postbank.
thobeka.ngema@inl.co.za