Jerusalem: As India and Israel deepen their ties, the State Bank of India (SBI) is stepping up to promote trade between the two nations. SBI is the only Indian bank in Israel and is now facilitating trade in Indian rupees.
“Given India’s central role in international trade, our banking regulators, including the Reserve Bank of India, are allowing Indian banks to handle trade settlements in INR,” said V Manivannan, CEO of SBI Israel. “Israel is a key partner country under this plan.”
With this arrangement, Israeli companies involved in exports and imports can now make payments in Indian rupees. This will simplify the process, as funds will be credited into a Special Rupee Vostro Account for these transactions.
SBI Tel Aviv is proactive in this initiative. The bank has held numerous webinars with the Israel-India Chamber of Commerce to promote this new trading method. They’re also engaging major defence companies in Israel to broaden their outreach.
Furthermore, the influx of over 40,000 Indian workers in Israel, primarily in construction and agriculture, has prompted SBI to facilitate money transfers back to India. The bank is helping these workers open Non-Resident Indian (NRI) accounts at its Tel Aviv branch.
“Our goal is to ease the remittance process for the Indian community here,” Manivannan said. “We’re also exploring partnerships with fintech firms and local banks.”
Established in 2007, SBI’s Israel branch has managed to thrive despite challenges like the pandemic and ongoing regional issues. It currently operates in 29 countries with a network of 241 locations globally.
SBI’s branch in Ramat-Gan is strategically located in the Diamond Exchange, providing services like trade finance and bank guarantees. As trade relations strengthen, SBI acts as a bridge for local businesses seeking to engage with India.
Recent diplomatic visits indicate a commitment from both countries to fortify their economic ties. Indian External Affairs Minister S Jaishankar visited Israel in December, shortly after Commerce Minister Piyush Goyal’s trip. Both nations aim to finalize a Free Trade Agreement, which has been a topic of discussion among their leaders.
During 2025, several Israeli ministers, including those from tourism and agriculture, visited India, emphasizing mutual interests in enhancing collaboration. The two nations have already signed a Bilateral Investment Treaty and are in the process of formalizing the FTA.
In an era where global trade is becoming more complex, this push towards rupee trading signals a significant shift. It provides a more streamlined and effective way for both sides to engage economically, reflecting an evolving landscape of international trade.
For more details on international trade agreements, you can visit [the World Trade Organization](https://www.wto.org) for insights and updates.
Source link
STATE BANK OF INDIA, INDIA ISRAEL TRADE IN RUPEE, INDIA ISRAEL TRADE, STATE BANK OF INDIA TO PROMOTE INDIA-ISRAEL TRADE IN RUPEE
