This follows Postbank’s plan to reissue all its South African Social Security Agency (SASSA) branded cards to the SARB and the Department of Communications and Digital Technologies. This is part of the banking compliance to position itself as a full-fledged bank.

The institution is upgrading the financial switch to align with Europay, Mastercard, and Visa practices and Payment Card Industry Data Security Standard, and the core banking system.

The African National Congress has been pushing for a state-owned bank for a couple of years now.

In September 2023, President Cyril Ramaphosa signed the Postbank Amendment Bill into law. This allowed the formal transfer of the Postbank’s shareholding from the embattled South African Post Office to the government.

Over the years Postbank has offered minor banking services through the Post Office. But with the bill signed into law, Postbank may become a state-owned bank in the country.

However, the Reserve Bank sets terms that the bank must meet, such as the switch of SASSA cards to align with the core banking system.

--SABC--