Tel Aviv branch promotes trade settlement in Rupees
State Bank of India (SBI) is exploring options to boost bilateral trade between India and Israel in Indian rupees, along with the Free Trade Agreement (FTA) which is under discussion between the two governments.
SBI is the only Indian lender having presence in Israel.
Reserve Bank of India has allowed Indian banks to facilitate settlement of exports and imports of their respective corporate clientele in Indian Rupees (INR). Israel has been identified as one of the partner countries under this mechanism, Press Trust of India cited CEO of SBI Israel, V Manivannan, as saying http://commerce.gov.in.
Manivannan explained that Israeli entities undertaking exports/imports through this mechanism will receive and make payments in INR, which shall be credited into the Special Rupee Vostro Account (SRVA), against invoices for the supply and purchase of goods or services from the Israeli seller/buyer.
“SBI Tel Aviv has all the requisite approvals in place to facilitate these transactions,” he said in a PTI report on 5 Jan.
SBI has stepped up efforts to deepen India–Israel business ties, with its Tel Aviv branch actively promoting trade settlement in rupees and smoother remittance flows for Indian workers in Israel https://www.bseindia.com/.
In recent months, the branch has held multiple meetings and webinars with the Israel-India Chamber of Commerce to encourage the use of the Indian currency in cross-border trade. Senior representatives from several leading Israeli defence companies have also participated in these discussions, according to PTI report.
With over 40,000 Indian workers recently joining Israel’s labour market, SBI is now focusing on easing remittances back home. The bank is helping these workers open NRI accounts in India through its Tel Aviv branch, making it simpler to send money home https://www.nseindia.com/.
“There has been a sharp rise in Indian workers, especially in construction and agriculture,” said Manivannan, adding that the branch is connecting the Indian diaspora with NRI banking services in India and is also exploring partnerships with fintech firms and local banks to support rupee-denominated remittance services. Fiinews.com
