FM launches FCSS at GIFT city, urges responsible AI fintech

Union Finance Minister Nirmala Sitharaman on Tuesday launched the Foreign Currency Settlement System (FCSS) at Gujarat International Finance Tec-City (GIFT City), marking a significant step toward enhancing India’s position as a global financial and fintech hub.

Speaking at the inaugural session of the Global Fintech Fest (GFF) 2025 in Mumbai, Sitharaman said the new system would enable real-time settlement of foreign currency transactions within the International Financial Services Centre (IFSC), eliminating the existing delay of up to 48 hours.

Describing the initiative as a “forward-looking step,” the Finance Minister noted that it places GIFT-IFSC among select global financial centres such as Hong Kong, Tokyo, and Manila, which already have localised foreign currency settlement systems. She added that FCSS will strengthen liquidity management, improve operational resilience, and ensure compliance under the Payment and Settlement Systems Act.

Sitharaman emphasised that the FCSS launch complements India’s broader efforts to build a robust fintech ecosystem supported by innovation, sound regulation, and world-class infrastructure. “Together, these initiatives illustrate how the Government of India has laid the groundwork for a vibrant, inclusive, and forward-looking fintech ecosystem,” she said.

Highlighting India’s growing role in the artificial intelligence (AI) sector, the Finance Minister said the government’s “India AI Mission” aims to position the country as a global hub for AI-driven innovation. She noted that India currently contributes 16 per cent of global AI talent and ranks among the top three AI talent markets worldwide. By 2028, AI-enabled Global Capability Centres (GCCs) are projected to contribute 30-35 per cent of India’s AI services revenue, she added.

Encouraging fintech companies to harness emerging technologies such as AI, blockchain, and intelligent finance, Sitharaman urged them to design solutions that promote transparency, efficiency, and risk mitigation. However, she cautioned against the misuse of AI, particularly through the spread of deepfake content. “The new generation of fraud is no longer about breaching firewalls; it’s about hacking trust,” she warned, citing her own experience with deepfake videos.

The Finance Minister also commended initiatives by the Securities and Exchange Board of India (SEBI) and the National Payments Corporation of India (NPCI), including the “@valid” UPI handle for verified payments and the “SEBI Check” platform to authenticate intermediary credentials. She underscored the importance of cybersecurity and responsible technology use in safeguarding financial systems.

Delivering four key messages to fintech players, Sitharaman urged them to focus on profitability, compliance, and innovation; prioritise trust and safety as the sector’s revenues approach USD 1.5 trillion by 2030; embrace responsible regulation; and advance financial inclusion for micro, small and medium enterprises (MSMEs), women, and gig workers. She also highlighted the growing importance of green finance in achieving sustainable development.

Reflecting on India’s technological progress from the first mobile call in 1995 to today’s digital transformation Sitharaman called for a united national effort to counter emerging threats such as AI-based fraud and deepfakes. “Our national mission must be to create a system that is not only the most innovative and inclusive but also the most trusted and resilient,” she concluded.