SDG 9: Industry, Innovation, and Infrastructure | SDG 17: Partnerships for the Goals
Institutions: Ministry of Finance | RBI
Finance Minister has launched the Foreign Currency Settlement System (FCSS) for GIFT IFSC (India’s first International Financial Services Centre) at the Global Fintech Festival in Mumbai. The FCSS is an authorized payment system designed to facilitate local settlement of foreign currency transactions between IFSC Banking Units (IBUs) without routing them through the slow correspondent banking network. This development is crucial as it elevates GIFT IFSC, the dedicated hub for global financial services in India, to the status of a premier international center, joining the league of Tokyo and Hong Kong with similar local settlement infrastructure.
The system bypasses the conventional correspondent banking route—which can take up to 48 hours for settlement—by appointing a local settlement bank. CCIL IFSC Limited, a subsidiary of the Clearing Corporation of India, is the authorized operator of the system, with Standard Chartered Bank (through its IBU) selected as the settlement bank. The FCSS, developed with software support from RBI subsidiary IFTAS, will settle transactions in real-time or near real-time, starting with the US Dollar, significantly reducing cost and settlement risk.
What is GIFT IFSC? GIFT IFSC (Gujarat International Finance Tec-City – International Financial Services Centre) is India’s first international financial hub, located in Gandhinagar, Gujarat. It operates as a special regulatory jurisdiction under the International Financial Services Centres Authority (IFSCA), allowing institutions to conduct cross-border financial services in foreign currencies.
GIFT IFSC hosts banks, insurers, fund managers, fintechs, and capital-market intermediaries, offering facilities such as global trading, aircraft and ship leasing, fund structuring, and now foreign currency settlement through systems like the FCSS. Its goal is to position India as a competitive alternative to global financial centres such as Singapore, Dubai, and London.
Relevant Question for Policy Stakeholders: What is the official roadmap and timeline for expanding the FCSS to include additional major foreign currencies beyond the US Dollar?
Follow the full news here: https://ifsca.gov.in/CommonDirect/GetFileView?id=2a38901cd710ed10d1660d1c301ae08e&fileName=Press_Release_FCSS_IFSCA_20251007_0332.pdf