Finance Minister Launches Real-Time Foreign Currency Settlement System in GIFT City

Finance Minister Nirmala Sitharaman launched a groundbreaking Foreign Currency Settlement System (FCSS) at the Global Fintech Fest 2025 in Mumbai on October 7, 2025, positioning Gujarat International Finance Tec-City (GIFT City) as a global financial hub. The initiative, aimed at enhancing international trade, investment, and ease of doing business, enables real-time or near-real-time settlement of foreign currency transactions within the International Financial Services Centre (IFSC). Sitharaman highlighted that the FCSS places GIFT City among elite financial centres like Hong Kong, Tokyo, and Manila, which boast similar infrastructure for local currency transaction settlements.

Speaking to an audience of fintech leaders, Sitharaman emphasised the system's role in streamlining cross-border transactions. "The FCSS solves the problem of facilitating seamless transactions on a real-time basis, enhancing liquidity management and ensuring compliance," she said. Unlike the current correspondent banking model, which routes transactions through multiple banks and takes 36-48 hours, the FCSS will settle payments instantly under the oversight of the Payment and Settlement Systems (PSS) Act, 2007. Standard Chartered’s India unit has been designated to handle US dollar clearances, marking a significant step toward operational efficiency and global competitiveness for India’s financial ecosystem.

The FCSS is a cornerstone of GIFT City’s ambition to rival international financial hubs. Located in Gandhinagar, Gujarat, GIFT City spans 886 acres and hosts over 580 entities, including banks, insurers, and fintech firms, contributing to India’s $4.5 trillion economy. The system is expected to attract foreign investment by reducing transaction delays and costs, bolstering India’s appeal for global businesses. Sitharaman noted India’s fintech dominance, ranking third globally with over 10,000 companies and leading in digital payments with 18,580 crore UPI transactions worth ₹261 lakh crore in 2024-25, as per Reserve Bank of India data.

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The launch aligns with India’s broader economic strategy to strengthen financial infrastructure and foster innovation. By enabling real-time settlements, the FCSS addresses liquidity challenges and enhances operational resilience, positioning GIFT City as a magnet for international capital. Industry experts at the fest, attended by over 30,000 delegates, hailed the move as a game-changer for India’s integration into global finance. As GIFT City continues to grow, with plans for 25 million square feet of commercial space by 2030, the FCSS underscores India’s commitment to modernising its financial landscape and competing on the world stage.

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