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Below the Quote on GIFT City`s Foreign Currency Settlement System by Rahul Gupta, Chief Business Officer, Ashika Group

“India’s GIFT City is preparing to expand its newly launched Foreign Currency Settlement System (FCSS) beyond the U.S. dollar to include currencies such as the euro and pound sterling, a move that could significantly enhance the international appeal of the International Financial Services Centre (IFSC). The FCSS, which enables near real-time settlement of foreign currency transactions, marks a major leap in efficiency and autonomy for India’s financial infrastructure—reducing settlement time from up to two days to mere seconds in some cases. Expanding this facility to other major currencies will help attract global banks, funds, and corporates to route a wider range of transactions through GIFT City.

The proposed expansion aligns with India’s broader goal of positioning GIFT IFSC as a global hub for cross-border finance and treasury operations. Multi-currency settlement will not only diversify India’s financial ecosystem but also reduce dependence on foreign correspondent banks, lower transaction costs, and deepen the country’s capital markets. For global investors and financial institutions, it offers an integrated, cost-efficient platform to manage multi-currency exposures within India’s regulatory framework.

However, the initiative also presents challenges, including the need for regulatory harmonization, liquidity management across currencies, and ensuring robust risk and compliance frameworks. If successfully executed, this step could elevate GIFT City into the league of leading global financial centres like Singapore and Dubai—marking a pivotal milestone in India’s journey toward becoming a key player in international financial intermediation.”

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