Mumbai: Finance minister Nirmala Sitharaman on Tuesday launched a real-time foreign currency settlement system at GIFT City, replacing the current delayed process involving multiple banks. The new system eliminates the 36-48 hour lag by enabling instant transactions, she announced at the Global Fintech Fest 2025.
"Transactions in foreign currency by entities and IFSC are currently settled through the correspondent banking arrangement, which is routed through different participants and multiple nostro banks. Such transactions are not settled on a near real-time basis and usually settled with a lag of up to 36-48 hours," she said, while launching it at the Global Fintech Fest 2025.
Sitharaman said that the system is trying to solve this problem by facilitating seamless and efficient settlement of foreign currency transactions within IFSC on a real-time basis. It will also enhance liquidity management and operational resilience as well as ensure compliance with regulatory oversight under the Payment and Settlement Systems (PSS) Act.
"With the operationalization of the FCSS, GIFT-IFSC will now join a select list of financial centres that include Hong Kong, Tokyo, Manila and so on, that have the infrastructure to settle foreign currency transactions locally," she said.
Such initiatives illustrate how the government has laid the groundwork for a vibrant, inclusive and forward-looking fintech ecosystem that is powering India's rise as a global fintech leader.
"Transactions in foreign currency by entities and IFSC are currently settled through the correspondent banking arrangement, which is routed through different participants and multiple nostro banks. Such transactions are not settled on a near real-time basis and usually settled with a lag of up to 36-48 hours," she said, while launching it at the Global Fintech Fest 2025.
Sitharaman said that the system is trying to solve this problem by facilitating seamless and efficient settlement of foreign currency transactions within IFSC on a real-time basis. It will also enhance liquidity management and operational resilience as well as ensure compliance with regulatory oversight under the Payment and Settlement Systems (PSS) Act.
"With the operationalization of the FCSS, GIFT-IFSC will now join a select list of financial centres that include Hong Kong, Tokyo, Manila and so on, that have the infrastructure to settle foreign currency transactions locally," she said.
Such initiatives illustrate how the government has laid the groundwork for a vibrant, inclusive and forward-looking fintech ecosystem that is powering India's rise as a global fintech leader.
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