Union Finance Minister Nirmala Sitharaman on Tuesday announced the launch of the Foreign Currency Settlement System (FCSS) at the Gujarat International Finance Tec-City (GIFT City), marking a major leap in India’s ambition to position itself as a global financial and fintech hub.
Speaking at the Global Fintech Fest (GFF) 2025 in Mumbai, Sitharaman described the FCSS as a “forward-looking step” that will enable real-time settlement of foreign currency transactions within the International Financial Services Centre (IFSC) — reducing the existing lag of up to 48 hours.
“The launch of the FCSS places GIFT-IFSC among a select group of international financial centres such as Hong Kong, Tokyo, and Manila that have localised foreign currency settlement systems,” the minister said. She added that the system will enhance liquidity management, strengthen operational resilience, and ensure regulatory compliance under the Payment and Settlement Systems Act.
Sitharaman said the initiative complements India’s broader efforts to build a vibrant, inclusive, and future-ready fintech ecosystem, powered by innovation, regulation, and robust digital infrastructure.
Highlighting the government’s commitment to emerging technologies, the Finance Minister cited the India AI Mission, aimed at expanding the country’s talent pool and innovation capabilities. India, she noted, already accounts for 16% of global AI talent, ranking among the top three AI talent markets worldwide. By 2028, AI-enabled Global Capability Centres (GCCs) are projected to contribute 30–35% of India’s AI services revenue, she said.
Encouraging fintechs to embrace technologies such as AI, blockchain, and intelligent finance, Sitharaman urged them to design transparent, risk-predictive, and user-centric products. However, she also cautioned against the misuse of AI, drawing attention to the growing threat of deepfake content.
“The new generation of fraud is no longer about breaching firewalls — it’s about hacking trust,” she warned.
Sitharaman also lauded initiatives by SEBI and NPCI, including the ‘@valid’ UPI handle for verified payments and ‘SEBI Check’ for intermediary verification, calling them vital steps towards responsible fintech innovation and cybersecurity.
Delivering four key messages to the industry, the minister urged fintech firms to:
- Focus on profitability, compliance, and innovation.
- Prioritise safety and trust as global fintech revenues approach USD 1.5 trillion by 2030.
- Support financial inclusion for MSMEs, women, and gig workers.
- Promote green finance to enable sustainable economic growth.
Reflecting on India’s technological progress — from the first mobile call in 1995 to today’s digital revolution — Sitharaman called for a collective national mission to safeguard the integrity of innovation.
“Our goal must be to build a system that is not only the most innovative and inclusive, but also the most trusted and resilient,” she concluded.
