Published: 9 October 2025Economy
Finance Minister Launches FCSS at GIFT City for Global Currency Settlement
The Finance Minister launched the Foreign Currency Settlement System (FCSS) of GIFT IFSC on October 7, 2025 at the Global Fintech Festival in Mumbai. IFSCA authorised FCSS under the Payment and Settlement Systems Act, 2007 to settle foreign currency transactions between IFSC Banking Units locally instead of routing them through the traditional correspondent-banking route.
The system initially settles USD transactions, with scope to add other foreign currencies over time. CCIL IFSC Limited, a subsidiary of Clearing Corporation of India Limited, operates FCSS. It can settle transactions on a real-time or near real-time basis, reducing the 36-48 hour delay associated with correspondent banking and placing GIFT IFSC among centres such as Tokyo and Hong Kong that have local foreign-currency settlement infrastructure.
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The PRARAMBH 2026 campaign was launched for awareness about which major legislation?
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Frequently asked questions
What is the Foreign Currency Settlement System (FCSS) launched at GIFT IFSC?
The Foreign Currency Settlement System (FCSS) of GIFT IFSC was launched on October 7, 2025. It enables foreign currency transactions between IFSC Banking Units to be settled locally on a real-time or near real-time basis instead of using the traditional correspondent-banking route.
How does FCSS strengthen GIFT IFSC as a financial centre?
FCSS strengthens GIFT IFSC by giving it local foreign-currency settlement infrastructure. IFSCA states that GIFT IFSC now joins a small group of centres, including Tokyo and Hong Kong, that can settle such transactions locally.
What is GIFT City IFSC and why is FCSS important?
GIFT City IFSC is India's international financial services centre. The FCSS launch adds local foreign-currency settlement infrastructure for IFSC Banking Units, reducing reliance on overseas correspondent-banking routes.
How are foreign-currency transactions settled under FCSS?
In the FCSS context, IFSC Banking Units settle covered foreign-currency transactions locally through the authorised payment system operated by CCIL IFSC Limited, rather than routing them through multiple correspondent banks.
How does FCSS support India's financial-market infrastructure?
FCSS supports India's financial-market infrastructure by making covered foreign-currency settlement faster and more localised. It initially settles USD transactions and can add other foreign currencies over time.
