Finance Minister Nirmala Sitharaman has inaugurated a new foreign currency settlement system at Gujarat International Finance Tec-City (GIFT City) International Financial Services Centre (IFSC), marking a significant technological leap for India’s global finance hub. This system is designed to enable near real-time settlement of foreign currency transactions, dramatically cutting down the current settlement window which typically spans between 36 and 48 hours.
This launch is a crucial step in positioning GIFT IFSC as a globally competitive financial gateway. By transitioning from a multi-day settlement cycle to a near real-time basis, the platform drastically reduces counterparty risk and enhances the efficiency of cross-border trade and investment flows. Such speed is essential for attracting global market participants who demand instantaneous execution and settlement, aligning GIFT City’s infrastructure with the highest international standards. The new system is expected to improve liquidity management for banks operating within the IFSC and bolster overall market integrity.
Beyond the immediate infrastructural upgrade, the Finance Minister used the occasion to issue a clear mandate to the burgeoning domestic fintech industry. She stressed that the sector must pivot its focus towards a sustainable business model, prioritizing four key pillars: revenue growth, continuous innovation, rigorous adherence to regulations, and a firm commitment to financial inclusion.
The message to the fintech leaders was strategically clear: superficial growth and rapid user acquisition are insufficient. Fintech companies must concentrate on building robust, profitable ventures that are compliant with the established regulatory framework. Crucially, the FM reiterated that the ultimate purpose of this technology must align with national goals, ensuring that every innovation contributes meaningfully to deep financial inclusion across all segments of the population.
The Minister also addressed the pressing threat of misinformation in the digital age, a critical challenge to maintaining public trust in the financial system. She expressed deep personal concern over encountering a deepfake video of herself, stressing the pervasive nature and potential harm of such deceptive content. This incident underscores the necessity for both technological vigilance and user awareness to safeguard the integrity of digital platforms. In this context, the FM praised the Securities and Exchange Board of India (SEBI) for launching its dedicated UPI handle, an initiative aimed at strengthening digital security and providing a verified channel for investor communications.
In closing, the FM highlighted the transformative power of India’s Digital Public Infrastructure on the public sphere. She noted that the government has already achieved significant savings of ₹4.31 Lakh Crore through the Direct Benefit Transfer (DBT) scheme, demonstrating the efficiency and leak-proof nature of technology-enabled governance. The launch of the real-time settlement system at GIFT City is thus the next logical extension of this digital success story, projecting India’s proven ability to execute large-scale, technologically advanced financial reforms onto the global stage.
