How Are Standard Chartered Bank and CCIL IFSC Making Real-Time US Dollar Transactions Possible at GIFT City?
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Synopsis
Standard Chartered Bank and CCIL IFSC have signed a groundbreaking agreement to enable real-time US dollar transactions at GIFT City. This partnership represents a crucial step towards enhancing financial efficiency and establishing GIFT City as a leading global financial hub, aligning with the government's vision for economic growth.
Key Takeaways
- Real-time settlement: The agreement allows for immediate US dollar transactions.
- Enhanced efficiency: It improves the speed of foreign currency transactions.
- Support for businesses: Corporates will benefit from quicker fund management.
- Commitment to GIFT City: Standard Chartered Bank reinforces its dedication to developing this financial center.
- Government vision: Aligns with the aim to create a world-class financial hub in India.
New Delhi, July 1 (NationPress) — In a significant move to facilitate real-time settlements for US dollar transactions at GIFT City in Gujarat, Standard Chartered Bank and CCIL IFSC Limited, a subsidiary of the Clearing Corporation of India Limited (CCIL), entered into an agreement on Tuesday.
As part of this agreement, Standard Chartered Bank IBU will serve as the settlement bank for the Foreign Exchange Settlement System (FCSS) managed by CCIL IFSC Limited at GIFT City.
This new US dollar clearing system will benefit corporates, businesses, and the financial sector, offering expedited settlement of foreign currency transactions within international business units. This will ultimately enhance the efficiency of fund management for IFSC banking units, investors, and other institutions.
“The appointment of Standard Chartered Bank as a settlement bank at GIFT City marks a pivotal milestone in our ongoing contribution to this essential ecosystem,” stated P.D. Singh, CEO of Standard Chartered Bank in India and South Asia.
With a history of being at the forefront of launching innovative products and capabilities at GIFT City, the bank is eager to leverage its international expertise to develop a world-class banking hub in collaboration with CCIL IFSC, Singh added.
This agreement signifies Standard Chartered Bank's dedication to the ongoing evolution of GIFT City, aligning with the government’s vision to establish a premier financial center with a solid reputation.
“The collaboration between CCIL-IFSC and Standard Chartered Bank represents a crucial advancement towards implementing our Foreign Currency Settlement System, paving the way for seamless, real-time USD settlements at IFSC, GIFT City,” remarked Hare Krishna Jena, Managing Director of CCIL and Director of CCIL IFSC Limited.
The government aims for the GIFT International Financial Services Centre (IFSC) to become a key gateway for global capital inflows into India, catering to the demands of high-growth sectors in the coming two decades.
Finance Minister Nirmala Sitharaman emphasized the need to transform GIFT City into a vibrant smart city, equipped with modern, integrated, and sustainable living infrastructure. She stated that establishing such world-class facilities is crucial for attracting top talent from both domestic and international markets.
Point of View
It is crucial to acknowledge the strategic significance of the recent agreement between Standard Chartered Bank and CCIL IFSC. This partnership not only enhances the operational capabilities of GIFT City but also aligns with our national objectives for economic development. Such initiatives are pivotal in positioning India as a global financial player and catering to the evolving needs of high-growth sectors.
NationPress
01/07/2025
Frequently Asked Questions
What is the significance of the agreement between Standard Chartered Bank and CCIL IFSC?
The agreement is significant as it enables real-time settlement for US dollar transactions at GIFT City, enhancing financial efficiency and supporting international business operations.
How will this impact businesses and investors?
This development will facilitate faster foreign currency transactions, thereby improving fund management and operational efficiency for businesses and investors at GIFT City.
What are the future goals for GIFT City?
GIFT City aims to be a premier financial hub, attracting global capital flows and fostering economic growth in high-demand sectors over the next two decades.
