India and Israel have signed a bilateral agreement to enable the use of India’s Unified Payments Interface (UPI) for cross-border payments, allowing Indian travellers and residents in Israel to make instant and low-cost digital transactions using their UPI apps.
The agreement, signed between the National Payments Corporation of India (NPCI) and the Bank of Israel, will integrate UPI with Israel’s payment systems, starting with real-time person-to-merchant (P2M) payments at retail outlets, hotels, restaurants, and tourist locations. Indian visitors will be able to scan QR codes and pay directly from their UPI-linked bank accounts without needing foreign currency or cards.
This move is expected to benefit the large Indian diaspora and growing number of Indian tourists visiting Israel, while also making payments more convenient for Israeli businesses serving Indian customers. The arrangement includes provisions for secure settlement, fraud prevention, and customer protection in line with both countries’ regulatory standards.
The partnership builds on India’s successful UPI linkages with several countries and reflects the deepening economic and technological cooperation between New Delhi and Tel Aviv. It is also seen as a step towards making digital payments more seamless in bilateral trade and tourism.
Implementation is expected to begin in phases, with initial rollout targeted for select merchants and locations before wider adoption.
