FM announces real-time foreign currency settlement system in Gift City
New system will put Gift City at par with global hubs such as Tokyo, Manila and Hong Kong
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Last Updated: Oct 07, 2025, 18:54 IST2 min
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Gift City in Gujarat can now settle foreign currency transactions locally with the Foreign Currency Settlement System (FCSS), which was launched by Finance Minister Nirmala Sitharaman on Tuesday at the sixth edition of the Global Fintech Festival (GFF) in Mumbai. “Foreign currency transactions by entities in IFSC [International Financial Services Centre] are currently routed through different participant NOSTRO [domestic banks holding an account in the corresponding foreign bank] banks. Such transactions are settled with a lag of 36 to 48 hours,” she said in her keynote address.
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With the launch of FCSS, Gift City will join a handful of global hubs like Tokyo, Manila and Hong Kong, with the ability to settle foreign currency transactions in real-time or near real-time. Sitharaman added that FCSS will enhance liquidity management and operational receivables, while ensuring compliance with regulatory oversight under the Payment and Settlement Systems (PSS) Act.
Standard Chartered Bank will be the sole partner bank for the FCSS platform, with CCIL IFSC Ltd, a subsidiary of Clearing Corporation of India, as the payment system operator (PSO) for FCSS.
AI & fintech
Sitharaman said that India’s 1800-plus global capacity centres (GCCs) have emerged as hubs of high-value engineering, R&D and innovation in the banking, financial services and insurance (BFSI) sector. She added that India accounts for 16 percent of the world's artificial intelligence (AI) talent, and AI-enabled GCCs in India are estimated to make up nearly 35 percent of revenue in India’s AI services market by 2028. This enables global fintechs to build and scale from India, she added, in keeping with the theme of the event, ‘Empowering finance for a better world powered by AI’.Also Read
From Digital Reach to digital depth: Dissecting India's UPI usage by state and merchant category Sitharaman spoke on “what kind of financial future we wish to build and how do we get there.” She highlighted the need for fintechs to focus on the fundamentals, including revenue growth, innovation, profitability and risk and compliance capabilities: “Firms that balance innovation with tools can pivot faster and scale more responsibly. The future will reward resilient people in the market and not just disruptive entrants.”
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She highlighted the rising incidence of digital fraud and unethical lending practices, which have plagued the digital payments and credit space of late. “As millions of citizens join the common financial system, the focus should expand towards trust, safety and inclusion. Speed and scale should walk hand in hand.” She added that while regulation is not meant to put a break on progress, it is necessary for safety and customer trust, and encouraged fintechs to try out their ideas with the RBI Sandbox and Self-Regulatory Organisational Framework for experimentation. The minister also encouraged fintechs to cover “small gaps” in the Indian ecosystem, including better lending products for MSMEs and innovation in green financing.
First Published: Oct 07, 2025, 18:54
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