Postbank to apply for bank licence

2011-08-29 09:26

Postbank will lodge an application for a banking licence by the end of the year, Minister of Communications Radhakrishna “Roy” Padayachie said today.

“Following my meeting with the SA Post Office, and having received a detailed report on matters pertaining to corporatisation process of the Postbank, I’m confident that the post office board and management are making progress and that the Postbank will be able to lodge its application for licence by December,” Padayachie said.

He met the post office on Tuesday last week to discuss progress on the corporatisation of the Postbank.

The South African Postbank Act Limited No 9 was promulgated in December last year and the commencement date was July 22 this year.

In terms of the act, the Postbank was established as a subsidiary of the post office, and would now operate as a retail bank. Previously, it was a division of the post office.

The communications ministry said Postbank would cater to the needs of the unbanked.

“The envisaged role of the Postbank in prioritising the banking needs of the unbanked majority, thus facilitating their inclusion into the economic mainstream and to promote a culture of savings, has led to it being accorded the status of a flagship project for the ministry,” the communications ministry said.

Postbank had received membership of Visa, and was about to finalise its lending, borrowing and investment policies as required by the act.

“It is envisaged that these policies will be tabled in Parliament before the end of the year.”

The nominations committee was on track with setting up the Postbank board.

The post office had finalised the determination of Postbank’s company structure and the conditions of service, remuneration and service benefits of staff.

At last week’s meeting, it was decided to set up a project oversight committee chaired by Padayachie to fast-track the implementation of the act.

The minister of finance, post office board members, and the SA Reserve Bank would be represented on the committee.

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions. publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.