
हिंदी में पढ़ने के लिए मेनू बार से हिंदी भाषा चयन करें।
Finance Minister Nirmala Sitharaman has launched a Foreign Currency Settlement System (FCSS) at GIFT City’s International Financial Services Centre (IFSC). The new system will enable real-time settlement of foreign currency transactions, making GIFT City a stronger global financial hub. The system was introduced at the Global Fintech Fest 2025 and is expected to transform the way foreign currency trades are processed in India.
What Is the Foreign Currency Settlement System (FCSS)?
The FCSS is designed to make foreign currency transactions faster and safer within GIFT City’s banking ecosystem. Until now, such settlements often took 36 to 54 hours because they were processed through overseas financial centres. With FCSS, transactions can be settled instantly, helping traders, banks, and corporates save both time and money.
Who Are the Key Participants?
According to officials, Standard Chartered Bank (India) will play a central role in handling U.S. dollar clearing under the FCSS framework. The Clearing Corporation of India Limited (CCIL IFSC) is also an active participant. Other IFSC Banking Units (IBUs) and both domestic and foreign banks can also connect to the system to settle their trades directly within GIFT City.
Major Benefits of FCSS
- Instant Settlement: Foreign currency trades will now be completed within seconds instead of days.
- Better Liquidity: Banks and companies can access funds quickly, improving overall efficiency.
- Reduced Risk: Since settlements happen instantly, timing and counterparty risks are minimized.
- Global Attraction: The new system positions GIFT City alongside global hubs like Hong Kong and Singapore.
Impact on India’s Financial Ecosystem
The launch of FCSS is expected to attract more foreign banks and investors to GIFT City. It also supports the government’s long-term vision of rupee internationalisation and making India a global financial centre. Faster settlement will make forex, derivatives, and trade finance operations more efficient and transparent.
Challenges Ahead
While the system promises speed and efficiency, experts say strong cybersecurity measures are essential to safeguard real-time transactions. Additionally, banks must update their treasury operations to handle liquidity in different currencies. Coordinating with international regulators will also be crucial as cross-border trades expand.
Outcome
The launch of the Foreign Currency Settlement System marks a major milestone for GIFT City. It brings India closer to becoming a global financial powerhouse, reduces dependency on foreign hubs, and creates a faster, more secure ecosystem for currency settlements. With careful implementation and robust regulation, GIFT City could soon stand shoulder-to-shoulder with the world’s leading financial centres.
Source: IFSCA Press