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: