No bank, both locally and abroad, should be willing to save the "corrupt money" of the Guptas, the Economic Freedom Fighters (EFF) said on Tuesday.

The EFF welcomed the decision of the Venda Building Society Mutual Bank (VBS) to terminate its business relations with the controversial family, believed to be the masterminds of a state capture project.

"A family like the Guptas must be isolated by all South Africans. It is a mafia family right at the centre of turning our democratic heritage into a meaningless and corrupt-ridden system based on nepotism, cronyism and general kleptocracy," said EFF spokesperson and MP Mbuyiseni Ndlozi.

He pointed out that VBS is one of the few black-owned financial institutions in SA.

"Although they granted Zuma a R7.8-million loan to repay his Nkandla debt, they have proven that they reject corruption. We welcome their decision in relation to the Guptas as an important proof that they refuse to be associated with corruption."

Gupta ties cut

Ndlozi said black-owned institutions are often associated with nepotism, corruption and kleptocracy.

"As a black institution, VBS Bank is rejecting this image and legacy of post-colonial black led institutions, charting itself on a path of honest dealings and clean business practices."

He said the EFF calls on all other black-led institutions to always act decisively against corruption, like the VBS Bank did in this case.

"There must be no bank both locally and abroad willing to save the corrupt money of the Guptas. With VBS Bank now also closing their account it means they will have no place to hide the taxpayers' money they are looting except in Dubai."

In 2016, South Africa's major banks - ABSA, Nedbank, First National Bank and Standard Bank - cut their ties with the Guptas.

In March this year, the Mumbai-based Bank of Baroda's South African unit also started to close Guptas' accounts. The Bank of China's South African unit did the same.

On Sunday, it emerged that VBS - which made headlines in 2016 when it provided Zuma with the multi-million rand loan for him to pay for the non-security related upgrades to his home at Nkandla - had joined the club of banks unwilling to do business with the Guptas.