Context
Standard Chartered Bank, CCIL IFSC Ltd, and the International Financial Services Centres Authority (IFSCA) will launch a real-time settlement platform for US dollar-denominated trades in GIFT City, Gandhinagar, Gujarat.
Operational launch: 7 October 2024.
Purpose of the Platform
- Enables instant settlement of US dollar trades (earlier: several hours).
- Makes foreign currency transactions faster, safer, more efficient.
Stakeholders
- Standard Chartered Bank → Sole banking partner.
- CCIL IFSC Ltd → Acts as Payment System Operator (PSO).
- IFSCA → Regulator, ensures compliance and smooth functioning.
Significance for GIFT City
- Enhances GIFT City’s role as a global financial hub.
- Simplifies cross-border settlements for domestic and foreign banks.
- Attracts international financial institutions.
Benefits
- Efficiency: Immediate settlement of USD trades.
- Transparency: Easier monitoring of transactions.
- Competitiveness: Makes India more attractive for global currency trade.
- Infrastructure Boost: Positions India strongly in international finance.
About GIFT City
- Full form: Gujarat International Finance Tec-City.
- India’s first operational IFSC (International Financial Services Centre).
- Offers offshore banking, insurance, capital market activities under one unified framework.
About IFSCA
- Established: 2020.
- Role: Unified regulator for financial products, services, and institutions in GIFT City.
- Functions parallel to SEBI, RBI, IRDAI, but specific to IFSCs.