In a bid to enable real-time settlement of US dollar transactions at GIFT City in Gujarat, Standard Chartered Bank and CCIL IFSC Limited, a subsidiary of Clearing Corporation of India Limited (CCIL), on Tuesday signed an agreement.
Under the pact, Standard Chartered Bank IBU will act as the settlement bank for CCIL IFSC Limited’s Foreign Exchange Settlement System (FCSS) at GIFT City.
Corporates, business and the financial community will benefit from the US dollar clearing system, as it permits faster settlement of foreign currency transactions within international business units. Subsequently, this will improve the efficiency of fund management for IFSC banking units, investors and other institutions.
“Standard Chartered Bank’s appointment as a Settlement Bank at GIFT City is an important milestone in our continued contribution to this critical ecosystem,” said P.D. Singh, CEO, India and South Asia, Standard Chartered Bank.
Having been at the forefront of introducing new products and capabilities at GIFT City, the bank looks forward to utilising its international expertise to make this a world class Banking centre in partnership with CCIL IFSC, Singh added.
The agreement reflects Standard Chartered Bank’s commitment to the continued development of GIFT City, in line with the government vision to create a world-class financial centre with a strong reputation in the country.
“CCIL-IFSC’s partnership with Standard Chartered Bank is a significant step towards operationalising our Foreign Currency Settlement System that will enable seamless, real-time USD settlements at IFSC, GIFT City,” said Hare Krishna Jena, Managing Director, CCIL and Director, CCIL IFSC Limited.
According to the government, GIFT International Financial Services Centre (IFSC) should be developed as a prominent gateway for global capital flows into India to feed the needs of high-growth sectors over the next two decades.
Finance Minister Nirmala Sitharaman late last month underscored the importance of developing GIFT City into a dynamic smart city, equipped with integrated, modern, and sustainable living infrastructure, and stated that establishing such world-class amenities is essential to attracting top-tier talent from both domestic and international markets.
