Euro FX settlement in works at GIFT City

India is considering introducing real-time foreign-exchange settlements in euros at its sole international financial hub, according to people familiar with the matter, a step that would deepen financial ties as the European Union-India trade deal progresses. The International Financial Services Centres Authority (IFSCA), which regulates the hub, has approached the government to permit the use of the euro alongside the US dollar for such settlements, the people said, declining to be identified because the discussions are private.

The proposal comes as India and the EU work to expand market access under the trade pact.

At the same time, the country has been working to strengthen its financial system - last year, it introduced real-time foreign-exchange settlement at Gujarat International Finance Tec-City (GIFT City), part of a broader push to make its flagship offshore financial centre more attractive to global investors.


Standard Chartered serves as the designated bank facilitating dollar settlements under the system, which processes interbank transactions on a real-time gross settlement basis. The shift has cut settlement times to seconds from as long as 24 hours, while also reducing reliance on overseas banking networks and lowering liquidity, operational and settlement risks, according to the Clearing Corp. of India's monthly publication.

A spokesperson for IFSCA did not reply to an email seeking comment.