New Delhi, Jan. 6 -- 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 thr...