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ARTICLE · 09 OCTOBER 2025

Foreign Currency Settlement System Framework Notified By IFSCA For GIFT IFSC

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On October 3, 2025, the International Financial Services Centres Authority (IFSCA) issued a notification formalising the Rules, Bye‑Laws, and Regulations for the Foreign Currency Settlement System (FCSS)...

IndiaFinance and Banking
Aditi Rana
Aditi Rana

Introduction

On October 3, 2025, the International Financial Services Centres Authority (IFSCA) issued a notification formalising the Rules, Bye‑Laws, and Regulations for the Foreign Currency Settlement System (FCSS) in the Gujarat International Finance Tec-City (GIFT IFSC). This notification provides a clear legal and operational framework for the settlement of foreign currency transactions within the IFSC, enhancing regulatory clarity, risk management, and operational efficiency for market participants.

Legal and Regulatory Background

The Foreign Currency Settlement System (FCSS) is established under a comprehensive legal and regulatory framework. Under Section 7 of the Payment and Settlement Systems Act, 2007 (PSS Act), the International Financial Services Centres Authority (IFSCA) has authorised CCIL IFSC Limited (CIL) to operate a payment system for the settlement of foreign currency transactions.

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