Bank of Israel has given permission today, for the first time, for banking transactions to be effected via the Internet. The first permit was extended to Bank Hapoalim, and other banks are expected to obtain permits shortly. Bank Hapoalim announced that it would start supplying the service in the next few days.
To date, there has been a Bank of Israel permit for banking activity via the Internet only for updating of data, current account status, data on mutual and provident funds etc. Banking transactions could not be concluded via the Internet.
Bank Hapoalim has announced that, from now on, it will facilitate deposit and withdrawal of daily interest and shekel deposits, and also the deposit and withdrawal of foreign currency linked deposits via the Internet. As regards securities, the purchase and sale of securities in all commercial arenas will be permitted via the Internet. Also permitted will be the purchase and sale of mutual funds and purchase and sale from existing inventory of Maof options and shekel/dollar options, via the Internet.
Bank Hapoalim reported that execution of transaction via the Internet entitles customers to benefits in interest rates and commissions, including a 25% discount on the ordering of cheque books, and 50% off the load charge commission in the purchase of mutual funds. The bank will also allow an increment of up to 0.5% in interest on shekel deposits, a 50% discount on the purchase and sale commission on securities, and an 0.25% increment in the interest rate on regular deposit savings schemes.
Published by Israel's Business Arena May 2, 1999