Finance Minister Nirmala Sitharaman launched a landmark real-time foreign currency settlement system at the Gujarat International Finance Tec-City (GIFT City) during the Global Fintech Festival (GFF) 2025 in Mumbai. This innovative platform enables seamless and instant settlement of foreign currency transactions within India’s tax-neutral financial zone, significantly cutting down previous delays that lasted 36 to 48 hours due to reliance on multiple international banking intermediaries.
The newly introduced Foreign Currency Settlement System (FCSS) marks GIFT City’s entry into the elite league of global financial centers such as Hong Kong, Tokyo, and Manila, which possess local infrastructure to settle foreign currency trades. By enabling real-time transactions, the platform enhances liquidity management, operational efficiency, and compliance with regulatory frameworks. The system initially supports US dollar transactions, with plans to include other major currencies in the future.
Previously, entities at GIFT City settled foreign currency trades using correspondent banking routes involving multiple Nostro accounts and intermediaries, resulting in a time-consuming and costly process. The FCSS replaces this with a local settlement bank model, where participating banks maintain accounts and settle foreign currency trades directly, bypassing the multi-leg correspondent chains.
Ms. Sitharaman emphasized that the GIFT City initiative is a strategic step toward establishing India as an international financial hub, attracting multinational banks, fintech firms, and global investors. This infrastructure is expected to boost the efficiency of Global Corporate Centres (GCCs) and enhance the competitiveness of India’s financial services sector.
The Finance Minister also highlighted India’s rapid growth in digital payments, with the country accounting for nearly 50% of global digital transactions and an 87% adoption rate, far exceeding the worldwide average. She underscored fintech’s vital role in driving financial inclusion, transforming savings, investments, and borrowing with transparency and ease.
Also Read: RBI Unveils Cutting-Edge Digital Payment Solutions at GFF 2025
The launch of the FCSS at GIFT City is a pivotal development that supports the government’s vision for a self-reliant, technologically advanced financial ecosystem. It paves the way for faster, cost-effective international trade settlements and reinforces India’s position as a rising global fintech powerhouse.
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