The South African Social Security Agency (Sassa) has confirmed a collaboration with FNB to facilitate payments for those affected by Ithala Bank’s closure. Ithala served around 65,000 social grant beneficiaries, primarily in KwaZulu-Natal, with smaller numbers in Mpumalanga, the Eastern Cape, Gauteng, the Free State, North West, and the Western Cape.
Without intervention, thousands of pensioners, children receiving child support grants, and individuals with disabilities would have been left without essential funds.
The Prudential Authority applied for Ithala’s provisional liquidation in the Pietermaritzburg High Court. In response, the National Treasury enlisted the Banking Association of South Africa (BASA) to assist affected beneficiaries. BASA approached its member banks, and FNB offered emergency assistance to open new accounts for Ithala clients.
Beneficiaries to Receive FNB Accounts
Sassa confirmed that all Ithala clients who have not yet opened new bank accounts will automatically receive one with FNB. Beneficiaries will have three months to switch to a preferred bank if they do not wish to continue with FNB.
Over the next three months, all clients will have the option to switch to their preferred bank. Sassa will ensure sufficient resources are available to support them
What Beneficiaries Must Do
FNB has urged Sassa beneficiaries to activate their new accounts and collect their bank cards from the nearest branch between 28 January and 4 February 2025.
Clients will need a valid form of identification to collect their card. In addition, Sassa and FNB will conduct joint outreaches in rural areas to minimise travel difficulties for clients
Sassa assured beneficiaries that FNB’s assistance will ensure grant payments proceed as scheduled in February 2025.
SRD Grant Payments May Face Delays
Beneficiaries of the Social Relief of Distress (SRD) grant who banked with Ithala may experience delays. However, Sassa has arranged a special payment run to process outstanding SRD grants.
Beneficiaries are advised not to panic. Sassa is working closely with FNB and all relevant stakeholders to ensure payments are made as usual
Sassa remains committed to ensuring all affected individuals receive their grants without prolonged disruptions.
