National Payment System Act, 1998 (Act No. 78 of 1998)

Notices

Designation of the South African Post Office Limited, a Postal Company contemplated in Section 3(1) of the Post Office Act, 1958 (Act No. 44 of 1958) which conducts the business of a bank through its Postbank Division, referred to in Section 51 of the Postal Services Act, 1998 (Act No. 124 of 1998), as a Designated Clearing System Participant

2. Background of the Proposed Designated Clearing System Participant
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2.1 The Postal Services Act, 1998 (Act No.124 of 1998) provides that the postal company, as contemplated in section 3(1) of the Post Office Act, 1958 (Act No.44 of 1958), must undertake such activities that are customary for a financial institution carrying on the business of accepting deposits.

 

2.2 The Postbank has a special status in that it is involved in the business of a bank but is excluded from the provisions of the Banks Act, 1990 (Act No. 94 of 1994 - "Banks Act") by the designation by the Minister of Finance, as published in Government Notice No. 344 in the Government Gazette No. 13744 of 24 January 1992 and is not regarded as a fully fledged bank.

 

2.3 The amendments that were introduced to the Act in 2004, 2007 and 2008 were aimed at allowing institutions or bodies, whose business falls within the definition of "the business of a bank" in terms of section 1 of the Banks Act or a "mutual bank" as defined in section 1 of the Mutual Banks Act, 1993 (Act No. 124 of 1993 - "Mutual Banks Act"), a "co-operative bank" as defined in section 1 of the Co-operative Banks Act, 2007 (Act No. 40 of 2007 - "Co-operative Banks Act") or non banking institutions that are excluded or exempted from the operation of the Banks Act, the Mutual Banks Act or the Co-operative Banks Act, to clear subject to certain conditions.