Finance Minister Nirmala Sitharaman on Tuesday unveiled the Foreign Currency Settlement System (FCSS) at the Gujarat International Finance Tec-City (GIFT City), marking a major milestone in India’s efforts to enhance international trade, investment, and ease of doing business.
Speaking at the Global Fintech Fest 2025, Sitharaman said the new mechanism would “facilitate seamless transactions on a real-time basis, enhance liquidity management, and ensure compliance.” The initiative, she added, is aimed at positioning India as a leading global financial hub.
The FCSS will function as a payment system within the International Financial Services Centre (IFSC), designed to settle transactions in foreign currency on a real-time or near real-time basis.
“With this, GIFT IFSC joins a select group of global financial centres, including Hong Kong, Tokyo, and Manila, that have infrastructure to locally settle foreign currency transactions,” the Finance Minister said.
Until now, foreign currency transactions by entities in the IFSC were routed through correspondent banking arrangements involving multiple intermediaries.
Such transactions were not settled in real time and often took between 36 to 48 hours to complete. The new system aims to eliminate those delays, offering immediate settlement capability.
Sitharaman emphasised that the FCSS will strengthen liquidity management and operational resilience while remaining under the regulatory framework of the Payment and Settlement Systems Act (PSS Act).
“The facility will significantly improve efficiency in cross-border payments and settlement within the IFSC,” she said.
Standard Chartered’s India unit has been selected for US dollar clearance under the system. The FCSS is expected to enhance India’s competitiveness in global financial markets and attract more international players to operate from GIFT City.
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The Finance Minister noted that with the operationalisation of this system, India has joined the ranks of major global financial hubs offering local settlement of foreign currency transactions.
“This will make GIFT City a more attractive destination for financial institutions seeking efficient settlement infrastructure,” she said.
India currently ranks third globally in terms of the number of fintech companies and leads the world in digital payment volumes. In 2024–25 alone, the country processed more than 18,580 crore UPI transactions worth Rs 261 lakh crore, reflecting its rapid adoption of digital finance and innovation.
Located in Gandhinagar, Gujarat International Finance Tec-City—popularly known as GIFT City—is India’s first operational smart city and international financial hub, aimed at consolidating financial and technological services within a single ecosystem.
The launch of the FCSS is expected to further cement GIFT City’s position as a hub for global fintech innovation, offering world-class infrastructure, regulatory clarity, and advanced payment systems designed to integrate seamlessly with international markets.
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