Sitharaman Launches Forex System at GIFT City

Mumbai, Oct 7 (PTI) Finance Minister Nirmala Sitharaman on Tuesday launched the foreign currency settlement system in GIFT IFSC, which will facilitate seamless transactions on real-time basis, enhance liquidity management, and ensure compliance.

Currently foreign currency transactions usually get settled with a lag of 36 to 48 hours.

Speaking at the Global Fintech Fest 2025, the finance minister said with the operationalisation of the foreign currency settlement system, GIFT City joins a select list of financial centres that include Hong Kong, Tokyo, Manila, and some other centres which have the infrastructure to settle foreign currency transactions locally.

Sitharaman further said fintech has democratised finance in India.

India ranks third in fintech companies and does half of world's real-time digital transactions, the minister said and added that the government's policy has been to play a role to nurture the fintech sector through a balanced approach.

She emphasised the government's enabling approach towards business, technology and innovation.

"We'd like to remain in the fringes and watch. We like to remain in the fringes and help...we have to enable businesses and not interrupt in their progress," Sitharaman added.

Fintech in India, she said, has not merely digitised payments but has also democratised finance, empowering millions to save, invest, borrow and insure with transparency.

Sitharaman said India has stepped decisively into the global AI arena with the USD 1.3 billion India AI Mission, showcasing the country's commitment to innovation and technology.

In her address, the finance minister also emphasised that "we should refrain" from weaponising technology and it should be used for the public good.

Sithraman also said while artificial intelligence (AI) has transformed finance and governance, there are darker sides of the technology also.

"Even as AI opens extraordinary possibilities, we must confront its darker side. The same tools that power innovation can be weaponised for deception and for fraud. I'm not personalising it, but I can say, I have seen several deep fake videos of myself, being circulated online, manipulated to mislead citizens, distort facts," the finance minister said.

She also informed the gathering that the government saved Rs 4.31 lakh crore due to Direct Benefit Transfer (DBT), and public funds now reach the people they are meant for and not ghost entities.