SBI Enables India-Israel Trade in Rupees Through Tel Aviv Branch
SBI in Israel facilitates bilateral trade settlements in Indian rupees to boost India-Israel economic ties.
Amid strengthening strategic and economic ties between India and Israel, the State Bank of India (SBI) has announced plans to promote bilateral trade settlement in Indian rupees. SBI, the only Indian bank operating in Israel, aims to support exporters and importers from both countries under a mechanism approved by the Reserve Bank of India to encourage international trade in INR.
SBI Israel CEO V Manivannan said Israel has been identified as a partner country for rupee-based trade settlement, allowing Israeli entities to receive and make payments in INR. These transactions will be routed through Special Rupee Vostro Accounts (SRVAs) against invoices for goods and services exchanged between Indian and Israeli businesses. SBI’s Tel Aviv branch has secured all necessary regulatory approvals to facilitate these transactions.
To promote awareness, SBI Tel Aviv has conducted multiple meetings and webinars in collaboration with the Israel–India Chamber of Commerce. These initiatives have involved major Israeli defence and corporate entities, highlighting the operational framework and benefits of rupee-denominated trade and reduced dependence on third-country currencies.
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In addition to trade facilitation, SBI is also focusing on remittance services for the growing Indian workforce in Israel. With over 40,000 Indian workers recently joining sectors such as construction and agriculture, the bank is enabling NRI account openings and exploring partnerships with fintech firms and local banks to streamline INR remittances to India.
SBI has maintained a full-fledged presence in Israel since 2007, operating from the Diamond Exchange in Ramat-Gan near Tel Aviv. The branch offers trade finance, bank guarantees, and business banking services to local corporates engaged in India-related projects, supported by SBI’s global network across 29 countries.
The push for rupee trade coincides with intensified diplomatic engagement between the two nations. High-level visits by Indian and Israeli ministers in recent months, along with the signing of a Bilateral Investment Treaty and terms of reference for a Free Trade Agreement, signal a concerted effort to unlock the full potential of India–Israel economic cooperation.
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