The India International Financial Services Centres Authority (IFSCA) has announced the launch of the Foreign Currency Settlement System (FCSS) for GIFT IFSC, a payment system authorised under the Payment and Settlement Systems Act, 2007. Launched by India’s Minister of Finance at the Global Fintech Festival in Mumbai, FCSS enables foreign currency transactions between IFSC Banking Units to be settled locally instead of being routed through correspondent banking chains, with initial settlement in USD. FCSS is structured around a local settlement bank, with participating banks required to open settlement accounts to allow transactions to be settled directly on a real-time or near real-time basis, shortening settlement timelines compared with the 36 to 48 hours cited for correspondent banking routes. IFSCA has authorised CCIL IFSC Limited, a subsidiary of Clearing Corporation of India Limited, as the operator; CCIL IFSC has assigned Indian Financial Technology & Allied Services to develop the system software and selected Standard Chartered Bank’s IFSC Banking Unit as the settlement bank through an open bidding process. The system is expected to add other foreign currencies over time.
India International Financial Services Centres Authority 2025-10-07
India International Financial Services Centres Authority authorises GIFT IFSC Foreign Currency Settlement System for local USD settlements
The India International Financial Services Centres Authority (IFSCA) launched the Foreign Currency Settlement System (FCSS) for GIFT IFSC, enabling local settlement of foreign currency transactions initially in USD. Operated by CCIL IFSC Limited with Standard Chartered Bank’s IFSC Banking Unit as the settlement bank, it aims to reduce settlement timelines compared to correspondent banking routes. Additional foreign currencies are expected to be added over time.