Tel Aviv working on joint system to allow UPI-driven transactions: Top Israeli official

In a strategic move to bolster economic relations, Israel is developing a joint payment system to facilitate UPI-driven transactions with India. This initiative follows the recent signing of a bilateral investment agreement, signaling a commitment to strengthen ties between the two nations. Yali Rothenberg, the Accountant General at Israel's Ministry of Finance, shared insights in an exclusive interview, highlighting the potential for swift finalization of free trade agreement negotiations. Rothenberg is currently in India as part of a high-level delegation led by Israeli Finance Minister Bezalel Smotrich. The bilateral investment agreement, endorsed by Finance Minister Nirmala Sitharaman and her Israeli counterpart, aims to encourage reciprocal investments, marking a new chapter in India-Israel relations. Rothenberg emphasized that this agreement is just the beginning, with plans to establish additional financial protocols to enhance infrastructure financing in India. Despite the ongoing Israel-Hamas conflict impacting the region, Rothenberg expressed optimism about the Middle East's evolving geopolitical landscape, noting a decrease in embedded risks for Israel compared to previous years. He described Israel's economic resilience and expressed a desire for Indian companies to engage with Israeli public tenders, provided they possess the necessary experience. A noteworthy prospect on the horizon is the potential signing of an agreement that would enable Indian citizens to make payments in local currency while in Israel through the UPI system. Rothenberg indicated that this agreement, spearheaded by the Bank of Israel, could be finalized in a matter of months, creating a direct payment link between the two countries. This development would also allow Israelis to transact in local currency in India. Regarding the ongoing negotiations for a free trade agreement, Rothenberg refrained from disclosing specifics but conveyed confidence that both parties are committed to reaching a conclusion promptly. The delegation's visit is set to include engagements in major Indian cities, aiming to foster diverse economic collaborations between Israel and India. As both nations explore these economic opportunities, Rothenberg's remarks convey a strong message of cooperation and forward momentum in their bilateral relationship.