{"id":67546,"date":"2025-10-09T13:31:53","date_gmt":"2025-10-09T08:01:53","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=67546"},"modified":"2025-10-09T15:21:44","modified_gmt":"2025-10-09T09:51:44","slug":"foreign-currency-settlement-system","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/foreign-currency-settlement-system\/","title":{"rendered":"Foreign Currency Settlement System"},"content":{"rendered":"<h2><b>Foreign Currency Settlement System Latest News<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Recently, the union Finance Minister launched a Foreign Currency Settlement System (FCSS) at the International Financial Services Centre (IFSC) in Gujarat International Finance Tec-City (GIFT City).\u00a0<\/span><\/p>\n<h2><b>About Foreign Currency Settlement System<\/b><\/h2>\n<ul>\n<li><span style=\"font-weight: 400;\">It is established under a comprehensive legal and regulatory framework of the <\/span><b>Payment and Settlement Systems Act, 2007.<\/b><\/li>\n<li><span style=\"font-weight: 400;\">It is authorised by <\/span><b>International Financial Services Centres Authority (IFSCA).<\/b><\/li>\n<li><b>Key Features<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">It enables <\/span><b>foreign currency transactions<\/b><span style=\"font-weight: 400;\"> between <\/span><b>IFSC Banking Units<\/b><span style=\"font-weight: 400;\"> (IBUs) to be settled locally instead of routing through the traditional correspondent banking route.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">It provides a <\/span><b>structured framework<\/b><span style=\"font-weight: 400;\"> for the settlement <\/span><b>of foreign currency transactions<\/b><span style=\"font-weight: 400;\">, enabling market participants to process cross-border payments with greater speed, reliability, and legal certainty.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><span style=\"font-weight: 400;\">Initially, the system will <\/span><b>support US dollar transactions<\/b><span style=\"font-weight: 400;\">, with scope to add other foreign currencies over time.\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">It is operated by the <\/span><b>CCIL IFSC Limited (CCIL IFSC),<\/b><span style=\"font-weight: 400;\"> a subsidiary of <\/span><b>Clearing Corporation of India Limited.<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Currently, foreign currency transactions in GIFT IFSC are processed <\/span><b>via correspondent banking routes i.e through multiple Nostro account relationships<\/b><span style=\"font-weight: 400;\"> (accounts held with foreign banks) and intermediaries to route funds.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">That chain of relay can lead to settlement lags of <\/span><b>36 to 48 hours.<\/b><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><b>What is the International Financial Services Centres Authority?<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It is a <\/span><b>statutory authority<\/b><span style=\"font-weight: 400;\"> established under the <\/span><b>International Financial Services Centres Authority Act, 2019<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The IFSCA is a unified authority for the <\/span><b>development and regulation of financial products,<\/b><span style=\"font-weight: 400;\"> financial services, and financial institutions in the International Financial Services Centre (IFSC) in India.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The IFSCA aims to develop a <\/span><b>strong global connection<\/b><span style=\"font-weight: 400;\"> and focus on the needs of the Indian economy as well as to serve as an international financial platform for the entire region.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Headquarter:<\/b><span style=\"font-weight: 400;\"> GIFT City, Gandhinagar, in Gujarat<\/span><\/li>\n<\/ul>\n<p><b>Source: <\/b><strong><a href=\"https:\/\/www.business-standard.com\/finance\/news\/foreign-currency-settlement-system-gift-city-launch-ifsc-nostro-125100800568_1.html\" target=\"_blank\" rel=\"nofollow noopener\">BS<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Foreign Currency Settlement System is established under a comprehensive legal and regulatory framework of the Payment and Settlement Systems Act, 2007. Read more about Foreign Currency Settlement System, Key Features, Headquarter, Latest News.<\/p>\n","protected":false},"author":24,"featured_media":67598,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[3150,21,22,23],"class_list":{"0":"post-67546","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"tag-foreign-currency-settlement-system","9":"tag-prelims-pointers","10":"tag-upsc-current-affairs","11":"tag-upsc-prelims-current-affairs","12":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/67546","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=67546"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/67546\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/67598"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=67546"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=67546"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=67546"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}