FM launches real-time foreign currency settlement system in GIFT City
The system will enable real-time or near real-time settlement of foreign currency transactions within GIFT City’s International Financial Services Centre.
Finance Minister Nirmala Sitharaman on Tuesday launched the foreign currency settlement system at Global FinTech Fest (GFF) 2025 in Mumbai—a key milestone for GIFT City’s International Financial Services Centre.
Gujarat International Finance Tec-City (GIFT City) is a multi-services special economic zone in Gandhinagar, Gujarat, designed as India's first International Financial Services Centre (IFSC).
The system will enable real-time or near real-time settlement of foreign currency transactions within IFSC. Currently, payments are delayed by 36 to 48 hours as they are routed through multiple correspondent banks and nostro banks.
A nostro account is a foreign currency bank account that a domestic bank holds with a foreign bank to facilitate cross-border transactions.
This move is expected to enhance liquidity management and operational resilience. It will also strengthen India’s position among key financial hubs such as Hong Kong and Tokyo, countries that already have such settlement systems.
Highlighting the evolving fintech landscape in India, Sitharaman said the government’s role is to “enable, not interrupt” businesses. She stressed that technology must remain a tool for public good and must not be weaponised.
The finance minister noted that India’s fintech revolution has democratised finance, empowering millions through platforms such as UPI, Aadhar, and DigiLocker. With over 18,580 crore UPI transactions worth ₹261 lakh crore processed in FY25 and ₹4.31 lakh crore saved through direct benefit transfers, digital inclusion has become a hallmark of India’s growth story, she said.
Sitharaman also outlined the government’s IndiaAI Mission—a $1.3-billion initiative to build indigenous AI capabilities through 34,000 GPUs, over 2000 verified datasets, and foundational models that support Indian languages. She urged fintech firms to leverage these tools.
The minister also noted that fintech firms are the future architects of finance, emphasising on four guiding messages—focus on fundamentals and compliance, balance speed and scale with safety, view regulation as a “seat belt" for safe accelerations, and help close remaining gaps when it comes to financial inclusion, especially for MSMEs, women, and gig workers.
While acknowledging AI’s transformative potential, she warned against its misuse through deepfakes and fraud. She called for a “whole-of-society approach” to protect trust and privacy.
Sitharaman said, “As we move towards Vikisit Bharat by 2047, we must all collectively ensure that technology continues to serve as a bridge and not as a barrier.”
Edited by Swetha Kannan