In October 2025, India’s Union Finance Minister launched the Foreign Currency Settlement System (FCSS) at Gujarat International Finance Tec-City (GIFT City), marking a major advancement in India’s financial infrastructure. The new system enables real-time settlement of foreign currency transactions within GIFT City—cutting down the previous 36–48 hour delay caused by reliance on foreign correspondent banks.

The FCSS allows Indian banks in GIFT City to settle trades locally using a domestic settlement bank, initially supporting US dollar transactions with plans to expand to other currencies. Operated by CCIL IFSC Ltd and powered by Indian Financial Technology & Allied Services (IFTAS), the system functions under the Payment and Settlement Systems Act, 2007, and is regulated by the International Financial Services Centres Authority (IFSCA).

By eliminating the need for multi-leg Nostro arrangements, FCSS reduces settlement risks, enhances liquidity, and improves operational efficiency. With Standard Chartered Bank as the partner for US dollar settlements, this initiative places GIFT City among a select few global financial hubs offering local foreign currency settlement infrastructure.

Located between Ahmedabad and Gandhinagar, GIFT City—India’s first international financial centre—hosts nearly 1,000 entities, including global banks, insurers, and asset managers. The city already houses India INX, NSE International Exchange, and pioneering aircraft and ship leasing units.

The launch of FCSS further strengthens GIFT City’s position as a competitive global financial hub, aligning with India’s goal of becoming a leading player in international finance while reducing reliance on offshore centres like Singapore and Mauritius.

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