Finance Minister Nirmala Sitharaman launched the Foreign Currency Settlement System (FCSS) at GIFT City during the Global Fintech Fest 2025 on 7th Oct. The system is aimed at enhancing the ease of international trade and investment by enabling real-time settlement of foreign exchange transactions within the GIFT International Financial Services Centre (IFSC).
Highlighting the importance of FCSS, Sitharaman said the new system eliminates the delays associated with current banking channels, where foreign currency transactions typically take 36–48 hours. With FCSS, transactions will now be settled in real time, improving liquidity, flexibility, and operational efficiency for financial institutions and companies operating in GIFT IFSC.
“This system places GIFT IFSC in the league of leading financial hubs like Hong Kong, Tokyo, and Manila, which have the infrastructure to locally settle forex transactions,” she said. She added that FCSS aligns with global regulatory standards and complies with the Payment and Settlement Systems (PSS) Act, ensuring transparent and efficient financial operations.
GIFT City (Gujarat International Finance Tec-City), located in Gandhinagar, is India's flagship financial hub, designed to attract global investors and promote international financial services. With the launch of FCSS, it strengthens its position as a competitive global financial centre.
India continues to see rapid growth in the fintech sector. The Finance Minister noted that India is now the third-largest country in terms of fintech companies and leads globally in digital payments. In FY 2024-25 alone, over 18,580 crore UPI transactions amounting to ₹261 lakh crore were recorded, underlining India’s leadership in digital finance innovation.
The launch of FCSS marks a significant milestone in India’s journey to becoming a global financial powerhouse by ensuring faster, compliant, and more efficient cross-border transactions.
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