Nirmala Sitharaman unveiled a landmark FCSS at GIFT City to strengthen India’s global financial infrastructure and promote real-time foreign currency transactions
Mumbai
Finance Minister Nirmala Sitharaman on Tuesday launched the Foreign Currency Settlement System (FCSS) at Gujarat International Finance Tec-City (GIFT City) during the Global Fintech Fest 2025, aiming to strengthen India’s position in global finance and enhance ease of doing business.
Sitharaman said the FCSS will enable real-time or near real-time settlement of foreign currency transactions within the International Financial Services Centre (IFSC), improving liquidity management, operational efficiency, and regulatory compliance. Until now, such transactions were processed through correspondent banking arrangements involving multiple intermediaries, often taking 36–48 hours.
With the system’s operationalisation, GIFT IFSC joins the ranks of major global financial centres like Hong Kong, Tokyo, and Manila that have local infrastructure for foreign currency settlements. Standard Chartered Bank’s India unit has been selected for U.S. dollar clearance under the new framework.
The minister emphasised that this initiative represents a major step in simplifying international trade, investment, and payments, allowing faster settlements and boosting confidence among global investors and institutions operating in India.
Highlighting India’s fintech achievements, Sitharaman noted that the country now ranks third globally in the number of fintech firms and leads in digital payment volumes, having recorded over 18,580 crore UPI transactions worth ₹261 lakh crore in 2024–25.Box: Addressing the fest FM said, “Criminals are using AI to mimic voices, clone identities and create lifelike videos that can manipulate people.” She added that she has seen several deepfake videos of herself being circulated online, manipulated to mislead citizens and distort facts — a reminder of the urgency with which we must strengthen our defences
