Mafikeng: The North West Legislature Portfolio Committee on Health and Social Development has expressed concerns regarding the increasing number of social grant beneficiaries opting to receive their payments through personal bank accounts. The committee said this decision could diminish the value of their grants because of the associated bank charges.
According to South African Government News Agency, the issue was raised during a recent oversight meeting with the South African Social Security Agency (SASSA) and the Department of Social Development. SASSA reported that 43,945 grant recipients have chosen to receive their payments directly into their bank accounts, instead of using the traditional SASSA gold cards or the newer Postbank black cards.
The committee, chaired by Karabo Magagane, believed shifting to personal bank accounts may have unintended consequences. ‘These beneficiaries may not realise that they are losing money to transaction fees and service charges, funds that are meant to support their most basic needs,’ she said.
The meeting was convened to provide an update on the ongoing migration from SASSA gold cards to Postbank black cards. This migration was initiated by the South African Reserve Bank (SARB) following a security breach that affected the previous card system. Beneficiaries were originally given a deadline of 31 May 2025 to transition to the new cards. However, that cut-off date has since been removed, allowing beneficiaries to continue applying for payments through either their bank accounts or Postbank black cards.
‘People were rushing to switch cards, some even under pressure. Now, they need clarity and reassurance that their current cards are still functional. You need to ensure that this is communicated widely,’ said Magagane. The leaders expressed concerns about the limited availability of Postbank conversion sites in the province. Currently, only 12 sites are operational across the North West.
‘Many of our elderly citizens live far from these centres and are not able to travel long distances just to access a card. This could be a driving factor behind the shift to personal bank accounts,’ Magagane added. Committee members expressed concern about the extra informal costs incurred by grant recipients. This is after they discovered that spaza shops reportedly charge R10 for each withdrawal, which further decreases the funds that recipients receive.
‘This completely defeats the purpose of a social grant. A grant is supposed to alleviate poverty, not get eaten up by unnecessary charges,’ said one committee member. In response to the challenges raised, the committee pledged continued engagement with SASSA and Postbank.
‘We are committed to ensuring that no beneficiary is left behind. We will push for ongoing awareness campaigns, improved accessibility, and sustained outreach efforts so that every grant recipient understands their options and the implications of each,’ Magagane added. The committee is scheduled to reconvene in a few weeks to review implementation plans and assess progress on these critical issues.