The Foreign Currency Settlement System (FCSS) launched recently at GIFT City is set to expand soon, with plans to support multiple global currencies such as the Euro and British Pound in a phased rollout, according to official sources.
“Based on the future market demand, the recently launched FCSS will now look at clearing other currencies like Euro or British Pound and a few other currencies,” K Rajaraman, Chairperson of International Financial Services Authority (IFSCA) — the unified regulator in GIFT City — told the bussinessline.
The FCSS, launched by Union Finance Minister Nirmala Sitharaman on the opening day of Global Fintech Fest 2025 held in Mumbai, currently supports only US dollar transactions, with Standard Chartered Bank as the settlement partner, enabling near real-time settlement without relying on traditional correspondent banking routes. However, the USD-based transactions are limited to IFSC Banking Units (IBUs) located in GIFT City in Gujarat.
Kamal Singhania, Senior Vice President of Clearing Corporation of India — the entity authorised to set up the FCSS in GIFT City — echoed similar sentiment. “We have started with the dollar as a currency and going forward we will add other major currencies also,” Singhania said while speaking during a panel discussion at GFF on Wednesday.
Speaking about expanding the FCSS during a panel discussion on the topic “Evolving Fintech landscape in GIFT City,” the official said, “We may expand to India jurisdiction so that all the banks in India can participate. Maybe after discussion with regulators we can also expand to other countries and settle transactions generated or required in other asian countries.”
“Currently if an entity in GIFT City wants to send a dollar to another entity in GIFT City, it happens through a nostro account — an account a domestic bank holds in a foreign bank. Both entities need to have separate nostro accounts in the United States. I was told that the maximum time that it took to transfer funds from one customer to other — both located in GIFT IFSC — was 48 hours. Now with a near real-time gross settlement system in place, a customer can transfer funds sitting in GIFT City to another in the same venue in just three seconds,” Singhania added.
Published on October 9, 2025
