Reserve Bank is advising Sassa on grant payments
The Bank favours an ‘open architecture’ approach that uses existing payments infrastructure and enables recipients to choose their bank, but says its role is limited
The Reserve Bank has had numerous engagements with the South African Security Agency (Sassa) and the Department of Social Development to discuss future options for the payment of social grants, the head of the bank’s National Payment System department, Tim Masela, said on Wednesday. Masela made a presentation to Parliament’s social development committee, which is concerned about the lack of preparation on the part of Sassa and the Department of Social Development for the payment of nearly 17-million grants once the contract with Cash Paymaster Services (CPS) expires at the end of the month. The contract with CPS, a subsidiary of Net1, was declared unlawful by the Constitutional Court three years ago but was allowed to remain in place so that grant recipients would not be left in the lurch. Sassa has not made alternative plans to take over the payment of grants and starts negotiations with CPS on Wednesday about the extension of its contract. Sassa approached the Constitutional Court...
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