Bank of Israel Freezes Digital Mail Transition Until New Knesset Committee

The Bank of Israel has extended the public comment period regarding banks transitioning to direct digital communication, moving the deadline from November 18 to November 30. Banking Supervisor Daniel Hahiashvili announced that the directive will not take effect until a new Knesset Economic Committee convenes to review the matter.

The proposed framework, published for public feedback on November 3, aims to alter the default method for receiving bank notices and documents. Currently, banks may replace physical mail with digital delivery only upon explicit customer request. Under the new proposal, banks could automatically transition customers to digital-only notices without prior consent, while allowing clients to opt back into physical mail at any time.

According to the Bank of Israel, the initiative is designed to provide faster and more accessible information, noting that 92 percent of banking transactions are already conducted through digital channels. However, the newly formed Economic Committee has not yet been established and is expected to convene only following the formation of a new government, effectively delaying the initiative by at least a month.

Hahiashvili's decision follows appeals from several members of Knesset, including Yitzhak Pindrus, Ahmad Tibi, Naama Lazimi, Efrat Rayten, and Yossef Tayeb, who strongly opposed the measure. Lawmakers warned that the transition could severely harm vulnerable populations, such as the elderly, new immigrants, and individuals with low digital literacy, while increasing fraud risks.