This comes about six weeks after TymeBank warned it was considering legal action in an effort to stop home affairs from implementing the huge increases in the fees companies must pay to verify their clients' identities.
TymeBank co-founder Coen Jonker - who now serves as CEO of the bank's parent company, Tyme Group - told TechCentral in June that the move by home affairs to jack up the fees would harm financial inclusion in South Africa by making it more difficult to serve low-income customers.
Now the parties are engaged in discussions, according to TymeBank, which was responding to a query from TechCentral.
"TymeBank confirms that we are engaging with the minister of home affairs and the department of home affairs in good faith, with the shared goal of finding a sustainable and inclusive solution to the proposed changes in identity verification fees," the bank said.
"Our position remains clear: identity verification is a foundational step in enabling financial inclusion. It must be secure, affordable and accessible to all, particularly the millions of South Africans who are currently excluded from formal financial services," it said.