Bank of Israel Delays Digital Mail Transition Amidst Knesset Concerns
Translated & summarized from Calcalist by baba
The Bank of Israel has extended the public comment period for a proposed shift to digital mail by banks until November 30, and committed to delaying implementation until the Knesset's Economy Committee discusses it. The plan would allow banks to default customers to digital communications without explicit consent, a move opposed by several MKs who fear it will harm vulnerable populations. The transition is now expected to be delayed by at least a month, pending the formation of a new government and committee discussions.
The story in 5 lines · by baba
- Bank of Israel extends public comment period for digital mail transition to November 30.
- Transition will not take effect before Knesset Economy Committee discussion.
- New plan allows banks to default customers to digital mail without explicit request.
- MKs oppose the move, citing potential harm to vulnerable populations and increased fraud risk.
- Implementation is delayed by at least a month, pending new government and committee formation.
The Supervisor of Banks, Dani Hachamovitch, announced on Friday that the Bank of Israel will extend the public comment period for the transition of banks to direct digital mail until November 30, delaying the original deadline of November 18. Furthermore, he committed that the directive will not take effect before further discussion by the Knesset's Economy Committee. The proposed framework, released for public comment on November 3, seeks to change the default method for receiving notifications and documents from banks. Currently, banks can switch from physical to digital mail only after a customer initiates a request. Under the new plan, banks would be able to transition customers to digital mail even without their explicit request, ceasing to send them the same notifications by post. Banks would not be obligated to make this switch, and customers could request to revert to physical mail at any time. The Bank of Israel explained that this move would allow for faster and more accessible information, noting that 92% of banking operations are already conducted through direct channels. The new Economy Committee has not yet been established and is expected to be formed only with the establishment of a new government, likely delaying the transition by a month or more. Hachamovitch's decision followed letters from Members of Knesset Yitzhak Pindrus, Ahmed Tibi, Naama Lazimi, Efrat Rayten, and Yosef Tayeb, who separately expressed opposition to the plan. Lazimi wrote that the move faced significant opposition in the previous Knesset and should not be advanced by a transitional government without proper parliamentary oversight, warning it would severely harm disadvantaged populations and require the Economy Committee's intervention. The framework had previously been discussed by the Economy Committee in January following the leak of an internal Bank of Israel draft. MKs had warned of harm to populations struggling with digital services, including the elderly, new immigrants, and those with low digital literacy, as well as an increased risk of fraud. Following the committee's discussion, then-Chairman David Bitan established a small team to consult with the Bank of Israel and the Banks' Association. Based on the team's conclusions, Bitan wrote to the Governor of the Bank of Israel in July stating that "at the present time, there is no place for a change in the format presented by the Bank of Israel or a similar format." He also noted that the Bank of Israel had clarified it would not proceed without reaching agreements with the committee.
Mentioned
