Nirmala Sitharaman Launches Foreign Currency Settlement Platform at GIFT City, Positioning India on the Global Financial Map
- 7th October 2025
- 01:00:00 PM
- 3 min read
Summary
India now accounts for nearly half of all global digital transactions, with an adoption rate of 87% — far above the global average of 63%. Speaking at GIFT City, Finance Minister Nirmala Sitharaman said India has emerged as the world’s third-largest fintech ecosystem, underlining the country’s growing role in shaping the future of digital finance and cross-border settlements.
Mumbai | October 7
A Global Leap in Transaction Settlement
In a landmark step for India’s financial infrastructure, Finance Minister Nirmala Sitharaman inaugurated the Foreign Currency Settlement System at GIFT City, Gujarat, on Monday.
The platform allows cross-border transactions to be settled locally and in real time, a development that places India among a select group of countries — including Hong Kong, Tokyo, and Manila — capable of handling foreign currency settlements domestically.
“Cross-border payments often pass through several banking channels, taking up to two days for completion. The new system will make settlement faster and more efficient, ensuring that GIFT City operates at global standards,” Sitharaman said at the launch.
The introduction of the system is expected to reduce settlement delays, cut transaction costs, and boost liquidity within India’s International Financial Services Centre (IFSC), attracting greater participation from global investors and financial institutions.
Building an Integrated Global Hub
Sitharaman Sitharaman described the initiative as a crucial pillar in India’s journey towards becoming a global financial hub, adding that the government is focused on enhancing the efficiency and scope of Global Corporate Centres (GCCs) across the country.
“Global Capability Centres in India are evolving beyond support functions — they are now driving strategic innovation, finance, and technology for multinational corporations,” she said.
The Finance Minister also encouraged fintech firms and financial intermediaries to capitalise on the opportunities emerging from GIFT City, calling it a “visionary project that integrates banking, capital markets, and digital finance on one seamless platform.”
According to Sitharaman, India’s fintech ecosystem continues to outpace the world in both adoption and innovation.
“India today contributes nearly 50% of global digital transactions with an adoption rate of 87%, much higher than the global average of 63%. We are now the third-largest fintech ecosystem in the world,” she said.
Strengthening the Fintech Foundation
Finance Minister emphasised that fintech has played a central role in India’s economic inclusion story. By moving away from paper-based systems, digital platforms have made saving, investing, and borrowing simpler, faster, and more transparent.
Sitharaman urged the sector to balance innovation with responsibility.
“Fintech has democratised finance, but it must remain a force for inclusion, not disruption. Technology should never be weaponised — it must empower,” she remarked.
A Step Closer to Global Competitiveness
The launch of the Foreign Currency Settlement Platform is viewed as a strategic milestone in GIFT City’s evolution into a world-class financial centre, comparable with Singapore and Dubai.
It is expected to attract multinational banks, investment managers, and fintech firms, who will benefit from faster settlements, lower costs, and deeper liquidity pools within India’s regulatory framework.
The move also supports the International Financial Services Centres Authority’s (IFSCA) long-term goal of establishing GIFT City as a premier hub for cross-border finance, fintech innovation, and offshore fund management.
“This launch is not just about faster settlements,” Sitharaman concluded. “It is about reimagining India’s role in the global financial ecosystem — one that is confident, connected, and digitally driven.”
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