JO’BURG, JULY 11, 2016 – The South African Reserve Bank (SARB) has approved the South Africa Post Office’s first level application for a banking licence for Postbank.
The awarding of the licence means that the Postbank is closer to offering more than just savings accounts as it will be able to offer banking cards and other services.
Officials expect the next and final level for the licence to be completed within 12 months.
Subsequent steps in the process will include the approval of the Postbank board nominees, the registration of it as a company and the transfer of business from Sapo to the new company.
Minister of Telecommunications and Postal Services, Siyabonga Cwele, said the awarding of the first level application brings government closer to its realisation of a state bank.
“I think we are coming closer to that realisation.
“It should be clear that this bank is not in competition with commercial banks,” he added.
“Postbank is set to serve government’s development agenda,” Cwele explained.
The bank is further expected to tap post office retail outlets across the country, turning them into branches.
Cwele said the Postbank is also set to become a subsidiary of the post office but with its own governing structure.