Grindrod Bank seeks legal clarity on new social grant regulations
The national financial institution says Sassa has misinterpreted the law over social beneficiary accounts.
CAPE TOWN - Grindrod Bank is seeking legal clarity on new social grant regulations as government takes the national financial institution to court.
The Department of Social Development and the South Africa Social Security Agency (Sassa) have taken legal action against Grindrod Bank and Cash Paymaster Services (CPS), alleging deductions from social grant beneficiary accounts were illegal.
This is because legislation, which came into effect last month, makes certain deductions unlawful.
The new law prohibits financial service providers from deducting money from social beneficiary accounts, except funeral cover installments.
But Grindrod Bank says Sassa has misinterpreted the law.
Sassa's Kgomoco Diseko has told Eyewitness News that the agency had tried to discuss the new regulations with Grindrod Bank.
"We have tried to persuade the two service providers to comply and to stop social grant deductions from beneficiary accounts."
But the bank says no one from the agency has been in contact.
CPS has not been available for comment.