A pensioner holds his SASSA card during grant collection on March 01, 2017 in Mpumalanga, South Africa.
JOHANNESBURG – About 5,4 million social grant recipients will have to pay their own bank costs when the new, hybrid model kicks in from April 2018.
The charges will apply to recipients who collect grants from points of sale or merchants.
Costs were previously covered by South African Social Security Agency (Sassa), but now recipients who collect grants from the points mentioned above will be charged a fixed rate of R10 per month.
Sassa says the charges will fall away when new grant cards are introduced.
Agency spokesperson Kgomoco Diseko speaks to eNCA on the matter.
The current contract that Sassa had with Cash Paymaster Services (CPS), was declared invalid by the Constitutional Court, but its validity was extended to 1 April 2018
The new model gives effect to the implementation of the phasing in of South African Post Office (Sapo) and the Postbank as a service providers.
There are four key channels through which beneficiaries across the country will receive their grants:
- Payments through bank accounts of beneficiaries’ choice with commercial banks;
- Payment through merchants in large retail shops;
- Payments through the Postbank of Sapo at its outlets; as well as
- Payments through a second tier of merchants, which include village banks‚ general dealers‚ small retail outlets‚ spaza shops‚ cooperatives which are legally registered and SA-owned and operated.