Finance Minister Nirmala Sitharaman launched a real-time foreign currency settlement system at Gujarat International Finance Tec-City (GIFT City) during the Global Fintech Fest (GFF) 2025 in Mumbai. The system enables instant settlement of foreign currency transactions within India’s international financial services zone, a move that significantly reduces the time and cost associated with cross-border settlements.
The new Foreign Currency Settlement System (FCSS) positions GIFT City alongside major global financial hubs such as Hong Kong, Tokyo, and Manila that have local infrastructure for foreign currency settlements. The platform will initially facilitate real-time settlements in US dollars, with other major currencies to be added in subsequent phases.
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Previously, foreign currency trades at GIFT City relied on correspondent banking routes through multiple Nostro accounts, resulting in settlement delays of up to 48 hours. The FCSS eliminates these intermediary steps by adopting a local settlement model where participating banks can directly maintain and settle accounts in foreign currencies within the GIFT City framework.
Launching the system, Ms. Sitharaman described the FCSS as a key milestone in India’s journey to becoming a global financial hub. She said the initiative will enhance the country’s appeal to international banks, fintech companies, and global investors by improving liquidity management, transparency, and regulatory efficiency.
The Finance Minister also highlighted India’s leadership in digital payments, noting that the country now accounts for nearly half of global digital transactions, with an 87 percent adoption rate that far surpasses the global average. She underscored fintech’s role in advancing financial inclusion and reshaping how Indians save, invest, and borrow.
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Industry observers view the launch of the FCSS as a transformative development for India’s financial services ecosystem. By enabling faster, cost-efficient, and compliant foreign exchange settlements, the platform strengthens GIFT City’s role as a competitive international financial centre and advances the government’s broader goal of building a self-reliant, technology-driven economy.
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Disclaimer: This post is for general informational purposes only. It does not constitute financial advice. Please consult a qualified professional before making financial decisions.
