SASSA AND BANKING INDUSTRY TO SIGN MOU

Publication Date: 16/05/2018

Discussions with the South African Social Security Agency (SASSA) on using the infrastructure of South African banks to assist in distributing social grants are proceeding in a positive and productive spirit.

The South African social grants system is a foundation of the developmental state and a key method of providing assistance to the members of our society who need it most.  BASA and member banks have been working tirelessly with SASSA since 2017 to find and implement the best methods for grant payments through the banking infrastructure.  There is total commitment from both sides to ensure seamless delivery of grants for beneficiaries and to this end BASA and SASSA agreed on 11 May 2018 to enter into a MOU which will further firm up the relationship and provide a platform for continued improvements in the grants delivery strategy.

With our countrywide branch and ATM networks and ongoing progress towards inclusive banking for all our citizens, South Africa’s banks are well positioned to assist in the payment of grants. The existing banking infrastructure and products can cost-effectively and securely deliver social grants without abuse.  Banks have identified 8,2 million existing beneficiary accounts of which 2,6 million have been used to pay grants of R3 035 992 513 in April.  It is foreseen that many more beneficiaries will start using their existing bank accounts for grant payments over the next few months.

The intended MOU will assist in ensuring that focused and practical solutions are continued to be implemented through the application of both SASSA and banks’ infrastructures and resources.