The South African Reserve Bank (SARB) on Tuesday briefed Parliament’s Social Development portfolio committee on the impact of the looming expiry of the SASSA and Postbank Master Service Agreement (MSA), set to end on September 30, 2025.
The briefing comes amid growing fears about the fate of more than 400,000 SASSA gold cards that remain un-migrated to Postbank-issued black cards — a situation that could affect 1.96 million grant beneficiaries and 1.08 million COVID-19 SRD recipients, or nearly 3 million people in total.
Social Development Minister Sisisi Tolashe expressed frustration:
“What will it mean to have three cards running concurrently financially? (I am) asking SARB, out of frustration. We want to find a solution. 453,000 cards have not yet been replaced. How will we be able to make sure Postbank is paying the right people but not ghost (beneficiaries)?”
She cited a previous crisis in which SASSA had to spend R20 million to mitigate losses after it was discovered that different cards were operating in parallel.
A troubled partnership
After the Constitutional Court terminated SASSA’s contract with Cash Paymaster Services (CPS) in 2018, the agency entered into a Master Services Agreement with the South African Post Office, later taken over by Postbank after SAPO’s collapse.
But SASSA has since determined that the agreement no longer serves its purpose and moved to terminate it — though Postbank insisted on serving the full notice period, setting the final date at 30 September 2025.
The scale of the risk is significant: the total amount processed monthly through Postbank is R3 billion.
- More context here: 2 million grants at risk as Postbank contract expires
- Background on shifting deadlines: SASSA gold card crisis worsens
SARB intervenes but concerns remain
SARB’s head of the National Payment System Department, Tim Masela, sought to calm fears:
“Sassa grant recipients are still able to use their Gold Cards, despite the indefinite suspension of Postbank’s card replacement process. Grant recipients will not be adversely affected while we concurrently try to find solutions that are fully compliant.”
Masela further explained that Postbank’s designation was varied after a cryptographic security breach led to fraud linked to SASSA Gold Cards. While he insisted the fraud is now contained, he acknowledged:
“The system is in a good space in terms of observation. We will intervene if safety, efficiency and integrity is involved.”
DSD still “worried”
Despite these assurances, Tolashe said she remained uneasy:
“I am unfortunately still worried but give it to the SARB (that) this time they will be able to monitor the implementation so we don’t get to where we were on the day I don’t want to remember.”
She declined to elaborate further, citing ongoing legal disputes between SASSA and Postbank.
Solutions presented to Parliament
- Grant continuity: Beneficiaries will continue receiving their grants, with Postbank still licensed to operate as a bank.
- Multiple banking options: Beneficiaries may have their grants deposited into accounts at any of the 22 approved banks. (Capitec leads with 7.6 million clients, followed by Postbank with 3 million and African Bank with 2.1 million.)
- Biometric verification: From September 2025, biometric checks are compulsory for all beneficiaries — a move meant to curb fraud and “ghost beneficiaries.”
- Illegal deductions crackdown: Following years of complaints, SASSA has stopped illegal deductions on grants, freeing vulnerable beneficiaries from exploitative practices.
- SRD clarity: With 1.08 million SRD recipients affected, beneficiaries are urged to ensure compliance with the updated SRD requirements.
Beneficiaries seeking clarity are advised to regularly check the SASSA website or call the helpline at 0800 60 10 11.
