Hundreds of thousands of grant recipients will be affected by the decision, with warnings about the impact on the rural poor.
The Post Office and Postbank this week described to MPs two institutions in disarray and losing money.
A new law signed by President Cyril Ramaphosa will allow state-owned Postbank to become a fully fledged bank.
All outstanding Sassa grant payments to recipients that were impacted by the recent system failure have been made.
The DA will lodge an urgent complaint at the Human Rights Commission against minister of social development Lindiwe Zulu.
Postbank’s legal dispute with payment switch provider has shed light on ongoing troubles in the payment of social grants.
Communications minister Mondli Gungubele apologised profusely for a technical “glitch” in Sassa grant payments.
Communications minister Mondli Gungubele said government is working to save the South African Post Office.
Postbank acknowledged that a system “glitch” had prevented many social grant recipients from accessing their January 2023 payments.
Most of the money stolen came from the Sassa beneficiary grant payment system, CEO Lucas Ndala said.