"Following my meeting with the SAPO [SA Post Office], and having received a detailed report on matters pertaining to corporatisation process of the Postbank, I'm confident that the SAPO board and management are making progress and that the Postbank will be able to lodge its application for licence by December 2011," Padayachie said in a statement.

He met SAPO on Tuesday last week to discuss progress on the corporatisation of the Postbank.

The South African Postbank Act Limited No 9 was promulgated in December 2010 and the commencement date was July 22, 2011.

In terms of the act, the Postbank was established as a subsidiary of SAPO, and would now operate as a retail bank. Previously, it was a division of SAPO.

The communications ministry said Postbank would cater to the needs of the unbanked.

"The envisaged role of the Postbank in prioritising the banking needs of the unbanked majority, thus facilitating their inclusion into the economic mainstream and to promote a culture of savings, has led to it being accorded the status of a flagship project for the ministry," the communications ministry said.

Postbank had received membership of Visa, and was about to finalise its Lending, Borrowing and Investment policies as required by section 26(2) of the act.

"It is envisaged that these policies will be tabled in Parliament before the end of the year."

The nominations committee was on track with setting up the Postbank Board.

SAPO had finalised the determination of Postbank's company structure and the conditions of service, remuneration and service benefits of staff.

At last week's meeting, it was decided to set up a project oversight committee chaired by Padayachie to fast-track the implementation of the act.

The minister of finance, SAPO board members, and the SA Reserve Bank would be represented on the committee.