GIFT City Enters Global League with Real-Time Forex Settlement

Until now, foreign currency transactions in GIFT City took 36 to 48 hours to settle. With this new system, settlements will now happen instantly. The Foreign Currency Settlement System was launched at the Global Fintech Festival in Mumbai by Union Finance Minister Nirmala Sitharaman.

Speaking at the event, the Finance Minister explained that earlier, transactions in foreign currencies at IFSC were carried out through correspondent banking arrangements via multiple nostro banks where Indian banks maintain accounts. This process took 36 to 48 hours. The new arrangement, she said, will improve liquidity management and operational resilience.

With this launch, GIFT-IFSC has joined a select group of global financial centers that have infrastructure to settle foreign currency transactions locally, similar to Hong Kong, Tokyo, and Manila.

Sitharaman also stated that through the use of Direct Benefit Transfer (DBT), the government has saved ₹4.31 lakh crore. She praised India’s leadership in banking, fintech, Aadhaar, UPI, and artificial intelligence, saying that technology should be designed to build trust, protect privacy, and empower citizens.

The Minister added that efforts are underway across India to enhance the efficiency of Global Capability Centres (GCCs) operating in the country.