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Launch of Foreign Currency Settlement System (FCSS) of GIFT IFSC

The International Financial Services Centres Authority (“IFSCA”) has issued a press release dated October 7, 2025 regarding the launch of the Foreign Currency Settlement System (“FCSS”) of GIFT IFSC by the Hon’ble Finance Minister, Smt. Nirmala Sitharaman, at the Global Fintech Festival held at Mumbai.

The key highlights of the press release are as follows:

  • The FCSS is a payment system under the Payment and Settlement Systems Act, 2007, authorised by IFSCA to enable foreign currency transactions between IFSC Banking Units (“IBUs”) to settle locally instead of routing through the traditional correspondent banking route.
  • The system is designed to initially settle transactions undertaken in USD, with the scope to include other foreign currencies over time. The launch of FCSS places GIFT IFSC among international financial centres such as Tokyo and Hong Kong that have infrastructure to settle foreign currency transactions locally.
  • The FCSS addresses the challenges associated with the correspondent banking route, which involves multiple banks in the transaction chain and may take 36 to 48 hours for settlement. Under FCSS, a local commercial bank is appointed as the settlement bank, and member banks maintain accounts with the settlement bank for direct settlement of transactions.
  • CCIL IFSC Limited (CCIL IFSC), a subsidiary of the Clearing Corporation of India Limited (“CCIL”), has been authorised by IFSCA under the Payment and Settlement Systems Act, 2007 to operate the FCSS system.
  • CCIL IFSC Ltd. was established in May 2024 as a subsidiary of the Clearing Corporation of India. It acts as a Payment System Operator to strengthen market infrastructure within GIFT City and was set up with the support of seven leading banks, namely State Bank of India, ICICI Bank Limited, Bank of Baroda, HDFC Bank Limited, Standard Chartered Bank, HSBC, and Bank of India.
  • CCIL IFSC Ltd. aims to provide a wide range of products and services to banks, insurance companies, stock exchanges, clearing corporations, and mutual funds in permitted foreign currencies, thereby supporting India’s financial ecosystem with efficient and globally competitive solutions.
  • The FCSS aims to facilitate real-time settlement of transactions, reducing settlement time compared to the traditional correspondent banking route.
  • Indian Financial Technology & Allied Services (“IFTAS”), a wholly owned subsidiary of the Reserve Bank of India, has been assigned to develop the FCSS system software.
  • Based on an open bidding process, Standard Chartered Bank, through its IFSC Banking Unit, has been selected as the settlement bank by CCIL IFSC Ltd.
  • The launch of FCSS was welcomed by the Chairperson, Shri K. Rajaraman, who stated that the system will make transactions faster, safer, and more cost-effective while reducing settlement risk.

A copy of the press release is attached herewith for your reference.

Source category: IFSC Insurance Office

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