Brief Overview:
The Foreign Currency Settlement System (FCSS), announced last year for GIFT IFSC, is now live, with CCIL IFSC Limited (CIL) formally designated as a payment system operator within the GIFT IFSC.
Detailed FCSS framework has also been issued outlining the operational structure.
Technical Details:
Key Highlights
1) Membership
Primarily, IFSC Banking Units (IBUs) are eligible to be members.
2) Currency
For now USD is the only currency allowed for fund transfers.
3) Connectivity
A secure IFSC Network for select members.
4) Dispute Resolution
(a) Member disputes are handled by a Dispute Resolution Panel set up by CIL.
(b) Disputes between members and CIL are referred to the Officer-in-Charge, Division of Payment and Settlement, IFSCA.
5) Settlement finality
Settlement of transactions by FCSS will be final and irrevocable.
Takeaways:
The FCSS platform will reduce the reliance on offshore settlement system. This move strengthens GIFT IFSC’s position as a global financial hub and also boosts investor confidence, enhance liquidity, and attract global financial institutions
For further details, please see:
Notification-FCSS authorisation
Byelaws rules regulations for FCSS
For any queries/clarifications, please feel free to ping us and we will be happy to chat:
