NextFin news, Finance Minister Nirmala Sitharaman on Tuesday, October 7, 2025, officially launched a real-time foreign currency settlement system at the GIFT International Financial Services Centre (IFSC) located in Gujarat's GIFT City. The launch took place during the Global Fintech Fest-2025, marking a significant advancement in India's financial infrastructure.
The newly introduced system replaces the previous delayed settlement process, which typically took 36 to 48 hours for foreign currency transactions. This real-time settlement mechanism is designed to improve liquidity management and ensure compliance, positioning GIFT City alongside global financial hubs such as Hong Kong, Tokyo, and Manila that have similar local currency settlement infrastructures.
Finance Minister Sitharaman highlighted India's fintech achievements during the event, noting that India ranks third globally in the number of fintech companies and processes half of the world's real-time digital transactions. She attributed this growth to the government's balanced approach that supports business, technology, and innovation without undue interference.
"We’d like to remain in the fringes and help," Sitharaman said, emphasizing that fintech has democratized finance in India by empowering millions to save, invest, borrow, and insure with transparency. She also cited the Direct Benefit Transfer (DBT) system, which has saved the government approximately Rs 4.31 lakh crore by ensuring funds reach intended beneficiaries and eliminating ghost entities.
During her address, the Finance Minister also cautioned against the misuse of emerging technologies such as artificial intelligence. She mentioned encountering deepfake videos of herself circulating online, manipulated to mislead the public. Sitharaman urged for responsible use of technology, stating, "It is important to constantly remind ourselves that technology cannot be... truly mastered, but having obtained certain propriety... we should refrain from weaponising it. The same tools that power innovation can be weaponised for deception and for fraud."
The launch of the real-time foreign currency settlement system at GIFT City is expected to enhance the efficiency and competitiveness of India's international financial services, supporting the country's broader goals of becoming a global financial hub.
Sources: The Economic Times, Telegraph India, Tribune India (October 8, 2025)
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