India Launches Foreign Currency Settlement System at GIFT City

India has launched a foreign currency settlement system at the Gujarat International Finance Tec-City (GIFT City), which will enable real-time settlement of foreign currency transactions, reducing the current 36 to 48-hour lag. Finance Minister Nirmala Sitharaman highlighted that this move places GIFT City among select global financial centers such as Hong Kong, Tokyo, and Manila with such local settlement infrastructure. The system aims to enhance liquidity management, compliance, and efficiency in cross-border financial transactions, supporting the growth of fintech companies and financial inclusion across India. Sitharaman also emphasized India's leadership in fintech, noting it ranks third globally in fintech company count and accounts for nearly half of the world's digital transactions, with an adoption rate significantly above the global average. She underscored the government's balanced approach to nurturing fintech innovation while cautioning against the weaponization of technology, advocating for responsible use for public good. Additionally, the involvement of Standard Chartered's India unit for US dollar clearance was noted, reflecting collaboration with major banking institutions.