Nirmala Sitharaman Launches Foreign Currency Settlement System at GIFT City

India Joins Global Financial Elite

Finance Minister Nirmala Sitharaman on Tuesday formally launched the foreign currency settlement system (FCSS) at GIFT IFSC (Gujarat International Finance Tec-City), marking a significant milestone in India’s ambition to become a global financial hub.

The system will enable real-time settlement of foreign currency transactions, reducing the existing 36–48 hour lag in cross-border payment processing.

Enhancing Efficiency and Liquidity

Speaking at the Global Fintech Fest 2025 in Mumbai, Sitharaman said the system would enhance liquidity management, improve compliance, and strengthen India’s integration with global financial networks.

“With the operationalisation of the foreign currency settlement system, GIFT City joins a select group of international financial centres — including Hong Kong, Tokyo, and Manila — that can locally settle foreign currency transactions,” she said.

The initiative is expected to attract more international investors and fintech firms to operate from India’s premier financial hub.

India’s Fintech Leadership

Highlighting India’s rapid rise in the fintech ecosystem, Sitharaman said:

“Fintech has democratised finance in India. We rank third globally in fintech companies and conduct half of the world’s real-time digital transactions.”

She credited the government’s balanced regulatory approach for nurturing innovation while maintaining financial stability.

“We like to remain at the fringes — not to interfere but to enable businesses, technology, and innovation,” the finance minister added.

AI, Ethics, and Digital Governance

Sitharaman also used the occasion to discuss Artificial Intelligence (AI) and its dual impact on society and governance.

“While AI opens extraordinary possibilities, it also has darker sides. The same tools that power innovation can be weaponised for deception,” she cautioned, referring to deepfake videos being circulated online using her likeness.

She urged responsible use of technology, saying it should serve the public good and not be weaponised.

The minister also noted that the India AI Mission, with a budget of USD 1.3 billion, demonstrates the government’s commitment to driving ethical AI innovation.

Impact of Digital Reforms

Sitharaman further highlighted the success of the Direct Benefit Transfer (DBT) system, which she said has saved ₹4.31 lakh crore by eliminating leakages and ensuring public funds reach genuine beneficiaries instead of ghost entities.

Conclusion

The launch of the foreign currency settlement system solidifies GIFT City’s position as a global fintech powerhouse and reinforces India’s vision to emerge as a leading hub for cross-border financial innovation, combining technology, transparency, and trust.