One of the bank's primary objectives is to expand the range of banking services to the unbanked and underserved communities and develop into a bank of first choice for these communities. The rates and charges of the post bank will also take into consideration the needs of the people in the lower income market.
The fully-fledged bank will have its own board of directors and governance structures, will be registered under the Banks Act and Companies Act as per legal requirements for a bank, and will render its banking activities through the existing infrastructure of the Post Office.
The rights and obligations, assets and liabilities of the former Postbank, including all deposits and investments held by the former Postbank will now be transferred to the new Postbank.
Speaking after the National Assembly approved the Bill, Minister of Communications General (Ret) Siphiwe Nyanda said, "Our aim as the Ministry of Communications is to ensure that we inculcate a culture of saving among citizens and stimulate socio-economic development, particularly in the rural communities. The new Postbank will ensure that financial services are within the proximity of our people."
