In a landmark step toward making India a global financial powerhouse, Finance Minister Nirmala Sitharaman on Tuesday launched the Foreign Currency Settlement System (FCSS) at Gujarat International Finance Tec-City (GIFT City).
The new real-time system will revolutionize the way foreign exchange transactions are settled within GIFT-IFSC, cutting down the traditional 36–48-hour delay under the correspondent banking model to instant settlements.
“Until now, foreign currency transactions in IFSC relied on multiple nostro banks, causing up to two days of delay. The new system eliminates that lag—bringing liquidity, speed, and transparency,” Sitharaman said while addressing the Global Fintech Fest in Mumbai.
GIFT City Joins Global Real-Time Forex League
With the FCSS launch, GIFT-IFSC now stands in the same league as leading international financial hubs like Hong Kong, Tokyo, and Manila, where local real-time foreign exchange settlements are the norm.
The Finance Minister emphasized that this innovation would strengthen liquidity management, operational resilience, and regulatory compliance under the Payment and Settlement Systems (PSS) Act.
She invited global fintech investors to participate in building GIFT City as “India’s global finance gateway.”
India’s Fintech Future: A Rs 1.25 Lakh Crore Opportunity
Sitharaman highlighted India’s rapid rise as a tech-driven innovation hub, noting that the country now hosts over 1,800 Global Capability Centers (GCCs) — many serving the banking, financial services, and insurance (BFSI) sector.
These centers are evolving from back-office operations to AI-led innovation engines, enabling global firms to build digital financial products and reduce operational costs.
India contributes 16% of the world’s AI talent and ranks among the top three global AI markets. By 2028, AI-led GCCs are expected to generate up to 35% of India’s total AI services revenue.
“Our AI technologies must be rooted in Indian languages and local contexts to ensure inclusivity and accessibility for every citizen,” Sitharaman said.
Innovation with Prudence: A Balanced Path
Delivering a strong message to the fintech sector, Sitharaman stressed that innovation must go hand in hand with prudence, urging startups to prioritize profitability, risk management, and compliance.
“As India transitions from cash to digital, speed and security must go hand in hand,” she said, calling responsible regulation the “seat belt for fast growth.”
She praised initiatives like the RBI Regulatory Sandbox and Self-Regulatory Organization (SRO) frameworks as enablers of “experimentation with accountability.”
Inclusive and Green Growth for a Digital India
Concluding her address, the Finance Minister called for fintech innovation in MSME lending, women’s financial inclusion, gig economy credit, and green finance — all critical to India’s sustainable growth path.
“The ultimate goal of India’s fintech journey is to empower every citizen, every enterprise, and every sector,” Sitharaman said, outlining her vision for a Viksit Bharat through digital finance.
Key Takeaways:
India launches real-time forex settlement at GIFT City
◆Eliminates 48-hour transaction delays for global investors
◆Rs 1.25 lakh crore fintech vision projected by 2030
◆Focus on AI-driven GCCs, inclusivity, and sustainability
◆Balanced growth through innovation with regulation
