GIFT CITY_RNM Newsletter Update _November 2025
1stOct 2025: Constitution and First Actions of the Payments Regulatory Board (PRB) under IFSCA
Following the implementation of amendments to the Payment and Settlement Systems Act, 2007 on May 9, 2025, the Payments Regulatory Board (PRB) was established, replacing the earlier Board for Regulation and Supervision of Payment and Settlement Systems (BPSS). The PRB now serves as the statutory body through which the International Financial Services Centres Authority (IFSCA) regulates and supervises payment and settlement systems under the Act.
The Board comprises senior representatives from IFSCA, the Department of Financial Services, UIDAI, and NPCI. In its first meeting on October 1, 2025, the PRB granted authorisation to CCIL IFSC Ltd. to operate a Foreign Currency Real-Time Gross Settlement (RTGS) System within the IFSC framework, marking its first major regulatory action.
07thOct 2025: Finance Minister Launches Foreign Currency Settlement System at GIFT IFSC — A Milestone in India’s Financial Infrastructure
Hon’ble Finance Minister Nirmala Sitharaman launched the Foreign Currency Settlement System (FCSS) for GIFT IFSC at the Global Fintech Festival in Mumbai. The FCSS, authorised by the International Financial Services Centres Authority (IFSCA) under the Payment and Settlement Systems Act, 2007, allows local settlement of foreign currency transactions (initially in USD) between IFSC Banking Units (IBUs)—eliminating the need for the traditional, slower correspondent banking route.
Operated by CCIL IFSC Ltd., a subsidiary of the Clearing Corporation of India Limited (CCIL), and developed by IFTAS (a subsidiary of the RBI), the system appoints Standard Chartered Bank as the settlement bank through an open bidding process. The FCSS will enable real-time or near real-time settlements, cutting down settlement time from up to 48 hours to a few minutes, while enhancing speed, safety, cost efficiency, and risk reduction.
The launch marks a significant milestone for GIFT IFSC, aligning it with global financial centres like Tokyo and Hong Kong, and strengthening India’s position as a world-class hub for international financial services and cross-border payment innovation.
23rdOct 2025: GIFT IFSC Takes Major Strides in Financial Innovation with Launch of FCSS and Consultation on Blended Finance Framework
At the Global Fintech Festival in Mumbai, Finance Minister Nirmala Sitharaman inaugurated the Foreign Currency Settlement System (FCSS) for GIFT IFSC — a landmark development in India’s financial infrastructure. The FCSS, authorised by IFSCA and operated by CCIL IFSC Ltd., enables local settlement of foreign currency transactions (starting with USD) between IFSC Banking Units, significantly reducing settlement time from up to 48 hours to just minutes. This move aligns GIFT IFSC with leading global financial centres like Tokyo and Hong Kong, enhancing its efficiency, safety, and global competitiveness.
In parallel, IFSCA released a Consultation Paper on “Regulatory Framework for Differential Distribution in Restricted and Venture Capital Schemes”, aimed at facilitating blended finance structures. The proposed framework seeks to attract diverse investor classes — including institutional, philanthropic, and impact investors — to mobilize private capital at scale toward climate and sustainable development goals.
As of June 2025, 177 Fund Management Entities have registered in GIFT IFSC, launching 272 schemes with USD 22.11 billion in commitments and USD 11 billion in investments, underscoring the rapid growth of India’s offshore fund ecosystem. Stakeholders have been invited to provide feedback on the proposal by November 11, 2025.
Together, these initiatives underscore India’s commitment to building GIFT IFSC as a global hub for cross-border finance and sustainable investment innovation.