Last chance for South African state-owned bank

The Reserve Bank has given the South African Postbank 15 months to comply with certain conditions or risk losing its designation as a clearing system participant.

Should it lose this designation, Postbank would no longer be allowed to directly clear and settle payments in the national payment system.

This means Postbank would no longer be able to process SASSA grant payments, and its clearing system business could be transferred to another bank or financial institution.

On 29 August 2025, the South African Reserve Bank (SARB) released the fourth variation of the conditions for Postbank’s designation as a clearing system participant.

In terms of the National Payment System Act, the Reserve Bank has the power to vary or revoke tany designation of a clearing system participant.

In November 2020, the Reserve Bank appointed Postbank as a designated clearing system participant (DCSP).

With this status, Postbank is able to take part directly in the national payment system (NPS), the infrastructure that processes and settles payments between banks and other institutions in South Africa.

Following this designation, Postbank repeatedly missed compliance deadlines, citing IT project delays and procurement moratoriums for service providers.

The Reserve Bank granted Postbank extensions after it failed to meet deadlines in 2021, 2022 and 2023, with the latest deadline set for 31 March 2025.

Among other conditions, Postbank was tasked with replacing South African Social Security Agency (SASSA) gold cards with new Postbank black cards.

However, by the end of March 2025, around one million SASSA gold cards still needed to be replaced, and Postbank informed the SARB that it would not be able to meet the compliance deadline. 

In May 2025, Postbank requested another extension of 15 months to meet all of the conditions the Reserve Bank had set out in its Designation Notice, the Variation Notice as well as the Second and Third Variation Notices.

This extension was granted in the Fourth Variation released on 29 August, with the Reserve Bank noting the progress and efforts Postbank has made in implementing other conditions.

The bank also outlined strict new management processes for future Postbank cards and bank identification numbers, including appointing an independent and qualified auditor as a witness to all key ceremonies.

However, the Reserve Bank warned that, if it becomes clear that all the conditions set out in the notices will not be met within 15 months, it will decide on the necessary mitigation actions.

These actions could include transferring Postbank’s DCSP business to another clearing system participant.

“Failure by Postbank to implement all the above conditions within the 15-month period following the date of publication of this Variation Notice in the Government Gazette may result in the revocation of Postbank’s designation as a DCSP in terms of section 6(3)(b) of the NPS Act,” the SARB warned.

If this happens, Postbank would no longer be able to directly clear and settle payments in the national payments system, including grant payments.