The South African Social Security Agency (Sassa) has confirmed a partnership with First National Bank (FNB) to ensure uninterrupted social grant payments for beneficiaries affected by the liquidation of Ithala SOC Limited.
Ithala Bank Liquidation Puts 65,000 Grant Beneficiaries at Risk
Ithala Bank serves approximately 65,000 social grant recipients, the majority of whom reside in KwaZulu-Natal, with smaller groups in Mpumalanga, the Eastern Cape, Gauteng, the Free State, North West, and the Western Cape.
Without intervention, these beneficiaries—including pensioners, child support grant recipients, and individuals receiving the disability grant—would have faced disruptions in their February 2025 Sassa payments.
How FNB Is Assisting Sassa Grant Beneficiaries
Following the Prudential Authority’s application for Ithala SOC Limited’s provisional liquidation in the Pietermaritzburg High Court, the National Treasury sought assistance from the Banking Association of South Africa (BASA) to find alternative banking solutions for affected beneficiaries.
BASA reached out to its member banks, and FNB stepped in to provide emergency banking services to former Ithala clients.
Key Measures by Sassa and FNB
- Automatic Account Creation: All Ithala beneficiaries who have not yet opened a new account will receive one with FNB.
- Three-Month Transition Period: Beneficiaries can provide Sassa with details of their preferred bank within three months if they do not wish to continue using FNB.
- Outreach Programs: Joint efforts by Sassa and FNB will ensure rural beneficiaries have access to banking services with minimal travel disruptions.
What Ithala Grant Beneficiaries Need to Do
To activate their new accounts and collect their FNB bank cards, beneficiaries must visit an FNB branch between 28 January and 4 February 2025 with a valid form of identification.
Sassa has assured beneficiaries that FNB’s intervention will ensure that all grants are paid on time in February 2025.
SRD Grant Payments May Experience Delays
While the transition process is underway, Social Relief of Distress (SRD) grant beneficiaries may experience payment delays. However, Sassa has confirmed that a special payment run will be conducted to process outstanding SRD grant payments.
Sassa’s Assurance to Beneficiaries
Sassa has urged beneficiaries to remain calm, stating:
“We are working closely with FNB and all relevant stakeholders to ensure that payments continue as usual. The interim measure with FNB will guarantee that our clients receive their grant payments on time.”
For the latest Sassa grant payment dates, updates, and more information, beneficiaries are encouraged to stay informed through official Sassa channels.