Why Postbank is Phasing Out SASSA Cash Payments 2024. bIn a significant move, Postbank announces the phasing out of SASSA cash payments by April 2024, triggering concerns from civil society organizations, especially in rural areas.
Impact on Rural Areas
Civil society organizations are expressing alarm at the anticipated devastating effects of terminating SASSA cash payments in 2024, particularly in remote areas where alternative means of receiving monthly stipends are scarce.
Defending the Decision | Postbank Perspective
Postbank justifies the phasing out of SASSA cash payments by revealing that only 142,000 people utilize cash payment points, while 123,000 collect their grants directly from Post Office branches. This accounts for a mere 2%, with the majority having transitioned to National Payment System channels.
Challenges Faced by Post Office
The Post Office faces challenges with business rescue efforts and anticipates thousands of job losses in 2024. For over a quarter of a million South Africans, mainly in rural areas, the termination of SASSA cash payments raises concerns about their financial well-being.
Transition to Digital Channel SASSA
SASSA prioritizes transitioning grant recipients to personal bank accounts or SASSA Gold/Postbank accounts, enabling beneficiaries to use their cards at any location accepting bank cards.
Capacity and Security Concerns
SASSA attributes the cessation of SASSA cash payments in 2024 to the lack of capacity at payment points and the rising incidents of cash-in-transit heists. Criminals in rural areas exploit the predictable monthly payment dates, revealing a need for enhanced security measures.
Call for Accommodation
Activist organization Black Sash emphasizes the necessity for better accommodation of grant recipients in rural areas. Their primary concern lies in the transportation costs incurred by beneficiaries to access ATMs or retail shops for their monthly grants.
Anticipated Challenges
Black Sash Regional Manager for KwaZulu-Natal, Evashnee Naidoo, anticipates a “devastating effect” on grant beneficiaries, especially those in rural areas who will now need to find alternative means to access their grants.
Guidelines for Beneficiaries
For SASSA grant beneficiaries considering a switch from Postbank to another commercial account, the following steps are recommended:
- Ensure the personal bank account is in your name.
- Download and complete the Consent Form for Bank Payment.
- Visit a SASSA branch with the completed form, proof of identity, and proof of a bank account in your name (certified three-month bank statement).
- Once accepted, future SASSA grant payments will be deposited into the designated bank account.
Conclusion
The shift away from SASSA cash payments in 2024 poses challenges for rural beneficiaries, necessitating thoughtful consideration and proactive measures to ensure continued financial support.
