SBI Israel to Facilitate India–Israel Trade Settlement in Rupees

New Delhi, Jan 6 (KNN) State Bank of India (SBI), the only Indian bank operating in Israel, is preparing to facilitate bilateral trade settlement in Indian rupees, amid strengthening strategic ties and renewed momentum around a proposed India–Israel Free Trade Agreement (FTA).

According to SBI Israel CEO V. Manivannan, Israel has been identified by the Reserve Bank of India as one of the partner countries under the mechanism that allows Indian banks to settle cross-border trade in rupees. The framework is aimed at supporting growing trade flows and increasing international use of the Indian currency.

Rupee Trade Mechanism

Under the arrangement, Israeli exporters and importers will be able to receive and make payments in Indian rupees through a Special Rupee Vostro Account (SRVA), against invoices for goods and services traded with Indian counterparties. 

Manivannan said SBI’s Tel Aviv branch has obtained all necessary regulatory approvals to facilitate such transactions.

To promote awareness, the branch has held meetings and webinars in collaboration with the Israel-India Chamber of Commerce, engaging with a range of stakeholders, including major Israeli defence companies.

Focus on Remittances and Diaspora Services

SBI is seeking to support remittance flows from Israel to India, following the recent arrival of over 40,000 Indian workers in sectors such as construction and agriculture. 

The Tel Aviv branch is facilitating the opening of non-resident Indian (NRI) accounts and exploring partnerships with fintech firms and local banks to streamline rupee remittances.

(KNN Bureau)