Quick Facts

• SARB controls interest rates in South Africa
• Current repo rate: 6.75% (November 2025)
• Current inflation: 3.6% (October 2025)
• SARB is South Africa’s only issuer of banknotes and coins
• Does NOT hold money for individuals or give loans to public

1. What is the South African Reserve Bank?

The South African Reserve Bank (SARB) is our country’s central bank. Think of it as the “bank for banks” in South Africa.

SARB was created in 1921. It is based in Pretoria. The current Governor is Lesetja Kganyago.

SARB’s main job: Protect the value of the rand. This means keeping prices stable in South Africa. When prices rise too fast, your money buys less. SARB works to prevent this.

What SARB Does:

• Controls interest rates – This affects what you pay on loans and earn on savings
• Prints money – SARB is the only institution allowed to make rand notes and coins
• Supervises banks – Makes sure banks follow rules and keep your money safe
• Manages payment systems – Ensures money transfers work properly in South Africa
• Holds government money – Acts as banker to the South African government
• Controls exchange rates – Manages some rules about sending money abroad

Ownership: SARB is unusual. Unlike most central banks, it has private shareholders. About 800+ people and companies own SARB shares. However, shareholders have NO power over SARB’s decisions. They cannot influence interest rates or banking policy.

2. How SARB Affects Your Daily Life

You might think SARB doesn’t affect you. But it does – every single day. Here’s how:

Your Loan Repayments

When SARB cuts interest rates, your loan becomes cheaper. When SARB raises rates, you pay more each month.

Food and Petrol Prices

SARB controls inflation. Inflation is when prices go up. SARB’s target is now 3% per year (as of November 2025). This means prices should rise slowly, not quickly.

Your Savings Account

When SARB raises interest rates, banks usually pay more on savings. When SARB cuts rates, you earn less on your savings.

The Money You Use

Every rand note in your wallet was made by SARB. SARB ensures notes are hard to fake. SARB also removes damaged money from circulation.

Your Bank’s Safety

SARB supervises all banks in South Africa. This helps protect your deposits. Since 2025, South Africa has deposit insurance. If your bank fails, you can claim up to R100,000 per person from the Corporation for Deposit Insurance (CODI).

3. Interest Rates Explained Simply

What is the Repo Rate?

The repo rate is the interest rate SARB charges banks when they borrow money. It’s also called the “repurchase rate”.

What is Prime Rate?

Prime rate is repo rate plus 3.5%. Banks use prime rate to set their lending rates. Most personal loans, home loans, and vehicle finance use prime rate as the base.

Example: If you have a home loan at “prime + 1%”, you pay 11.25% (10.25% + 1%) as of December 2025.

Recent Rate Changes (2024-2025)

Date	Repo Rate	Change
November 2025	6.75%	Cut by 0.25%
September 2025	7.00%	No change
July 2025	7.00%	Cut by 0.25%
May 2025	7.25%	Cut by 0.25%
January 2025	7.50%	Cut by 0.25%

When Does SARB Meet?

SARB’s Monetary Policy Committee (MPC) meets 6 times per year. They announce rate decisions after each meeting. These meetings happen roughly every 2 months.

You can watch SARB announcements live on TV or online. Governor Kganyago explains each decision.

4. Inflation and Your Money

What is Inflation?

Inflation means prices are going up. When inflation is 3%, something that cost R100 last year now costs R103.

Inflation is normal. A little inflation is okay. But too much inflation is bad. Your money loses value quickly.

New Inflation Target (November 2025)

SARB changed its inflation target in November 2025. The old target was 3-6%. The new target is 3% exactly, with a tolerance of ±1%.

This means SARB wants to keep inflation between 2% and 4%. The ideal is 3%.

What Affects Inflation?

• Food prices – Bad weather means expensive food
• Petrol prices – Oil price affects transport costs
• Electricity costs – Eskom increases push inflation up
• The rand exchange rate – Weak rand means expensive imports
• Interest rates – Higher rates slow down spending and inflation

Why Low Inflation Helps You

When inflation is low and stable:

• Your salary goes further each month
• You can plan your budget better
• Interest rates usually stay lower
• Businesses invest more, creating jobs
• Pension money keeps its value longer

✅ 5. Consumer Services from SARB

SARB offers some services directly to the public. Here’s what you need to know:

Exchanging Damaged Money

If your banknotes are torn or damaged, you can exchange them. But it depends how damaged they are.

Condition	Value You Get
Two-thirds or more remaining	Full value (100%)
Between two-fifths and two-thirds	Half value (50%)
Less than two-fifths remaining	No value (0%)

Where to go:

• Most commercial banks accept damaged notes (Absa, Capitec, FNB, etc.)
• You need an account at that bank
• Bank will assess the damage and pay accordingly
• For large amounts, you can go to SARB head office in Pretoria

Reporting Counterfeit Money

If you receive a fake banknote, you must report it immediately. Do NOT try to spend it again. That’s illegal.

What to do:

1. Do not accept the note if possible
2. If you already accepted it, keep it safe
3. Report to your local police station
4. Or report to SARB directly
5. You will NOT get reimbursed for fake notes

How to Spot Fake Notes

SARB says: Look, Feel, and Tilt

• Look: Hold up to light. See watermark and security thread.
• Feel: Real notes feel different. They’re slightly rough, not smooth.
• Tilt: Move the note. Security features change colour.

Exchanging Old Banknotes

Some very old notes are no longer accepted at shops. But you can still exchange them.

Old “Big Five” R200 notes (withdrawn in 2010):

• Can exchange at SARB Johannesburg Cash Centre
• Address: 57 Ntemi Piliso Street, Newtown, Johannesburg
• Open: Tuesdays and Thursdays, 9am-1pm only
• Direct cash-for-cash exchange

SARB Currency Museum

SARB has educational resources about South African money. You can visit their website to learn about banknote security features. They also have a currency app available on Google Play and Apple Store.

6. How SARB Protects Your Bank Deposits

The Prudential Authority

SARB has a special department called the Prudential Authority (PA). The PA supervises all banks in South Africa.

What PA does:

• Makes sure banks have enough money to operate
• Checks that banks follow all financial laws
• Investigates banks that take risks
• Can close down unsafe banks
• Protects depositors’ money

Deposit Insurance (NEW in 2025)

South Africa now has official deposit insurance. It’s called the Corporation for Deposit Insurance (CODI).

Important: This insurance is automatic. You don’t need to apply. You don’t pay extra fees. It’s funded by the banks themselves.

Which Institutions Does SARB Supervise?

• All commercial banks (Standard Bank, FNB, Capitec, etc.)
• Cooperative banks
• Mutual banks
• Insurance companies
• Payment system operators
• Foreign exchange dealers

SARB Does NOT Supervise:

• Loan sharks and cash lenders (National Credit Regulator does this)
• Investment advisors (Financial Sector Conduct Authority does this)
• Stokvels and savings clubs (these are informal)
• Individual financial advisors

🚨 7. WARNING: Common SARB Scams

SARB is frequently used by scammers to trick people. Be very careful!

Scam #1: “SARB is Holding Money for You”

Scammers send emails or letters saying SARB has millions of rands waiting for you. They say you won a lottery, inheritance, or compensation.

The Truth: SARB does NOT hold money for individuals. SARB does NOT run lotteries. SARB does NOT send compensation payments.

Scam #2: Fake SARB Employment Offers

Scammers send SMS or WhatsApp messages claiming SARB wants to hire you. They say you must visit SARB offices to sign a contract.

The Truth: SARB does NOT recruit via SMS or WhatsApp. All SARB jobs are advertised properly on their website. You must apply formally online.

Scam #3: 419 / Advance Fee Fraud

These scams often include fake documents with SARB’s logo. Documents claim to be signed by the Governor. They look very official.

Common fake documents:

• “Anti-money laundering certificates” from SARB (SARB doesn’t issue these)
• “Drug clearance certificates” from SARB (SARB doesn’t issue these)
• “Tax clearance certificates” from SARB (only SARS issues these)
• “Transfer authorization” from SARB Governor (fake)

Scam #4: Deepfake Videos

In 2025, scammers are using AI to create fake videos. These videos show famous South Africans or SARB officials promoting “investment opportunities”.

Recent example: Fake videos of rugby player Siya Kolisi promoting investment schemes using SARB and bank logos.

Scam #5: Fake Banking Rules

Scammers spread false news about new banking regulations. Example: In May 2025, fake news claimed banks must report withdrawals over R10,000 to SARS.

The Truth: SARB denied this completely. Always check SARB’s official website for real announcements.

How to Protect Yourself:

1. SARB does NOT maintain accounts for individuals
2. SARB does NOT offer online banking to the public
3. SARB does NOT charge fees for signing documents
4. SARB does NOT authorize lottery payments
5. SARB has NO branches outside South Africa
6. SARB has NO “agents” working abroad
7. SARB does NOT appoint lawyers for private citizens

Report Scams To:

• SARB Tip-offs Anonymous: 0800 384 425 (free, anonymous)
• SABRIC (Banking scams): 0860 123 000
• SAPS Cybercrime: Report at nearest police station
• FSCA (Investment scams): 0800 110 443

8. How to Contact SARB

Head Office (Pretoria)

Address: 370 Helen Joseph Street, Pretoria, 0002

Phone: 012 313 3911

Toll-free: 086 112 7272

Cape Town Office

Address: 25 Burg Street, Cape Town, 8001

Johannesburg Cash Centre

Address: 57 Ntemi Piliso Street, Newtown, Johannesburg

Hours: Tuesdays and Thursdays, 9am-1pm (for old note exchange)

Online

Website: www.resbank.co.za

Email: info@resbank.co.za

Social Media: @SAReserveBank (Twitter/X), Facebook

Special Services

Fraud Hotline (Tip-offs Anonymous): 0800 384 425 (free, 24/7)

Currency Information: Download “SARB Currency” app

Privacy Queries: privacy@resbank.co.za

What You CAN Contact SARB About:

• Exchanging damaged or old banknotes
• Reporting counterfeit money
• Reporting financial fraud involving SARB’s name
• Questions about interest rates and monetary policy
• Questions about banknote security features
• Educational queries about banking and economics

What You CANNOT Contact SARB About:

• Disputes with your bank
• Loan applications or rejections
• Credit score problems
• Lost or stolen bank cards
• Incorrect bank charges
• Personal financial advice

1. SARB is the Guardian of Your Money’s Value
By controlling inflation and interest rates, SARB protects your purchasing power. Their decisions affect loan repayments, savings interest, and price stability across South Africa.

2. Current Rates Favour Borrowers (December 2025)
With repo rate at 6.75% and prime at 10.25%, loan costs are at multi-year lows. This is good news for home buyers and anyone with debt. Economists expect possible further cuts in 2026.

3. New Inflation Target Means Lower Prices
SARB’s new 3% target (changed November 2025) aims for even lower inflation. Over time, this should mean more stable prices and better value for your salary.

4. Your Bank Deposits Are Now Insured
New deposit insurance protects up to R100,000 per person if your bank fails. This is a major improvement in consumer protection introduced in 2025.

5. Be Alert for SARB Scams
Criminals constantly misuse SARB’s name. Remember: SARB NEVER holds money for individuals, NEVER charges fees to “release” funds, and NEVER recruits via SMS. If it sounds too good to be true, it’s a scam.

6. SARB Works for All South Africans
Unlike private banks, SARB’s goal is not profit. Its sole purpose is protecting the rand’s value and maintaining financial stability. This benefits every South African, from pensioners to business owners to students.

7. Stay Informed
SARB announcements about interest rates happen roughly every 2 months. These affect your financial life directly. Follow news about MPC meetings to understand when rates might change.