IFSCA circular E. File.no. IFSCA-FMPP0BR/12/2023-Banking · 07 Oct 2025
Official title
Circular on Foreign Currency Settlement System– Instructions for IFSC Banking Units
Summary
Check the official recordThe International Financial Services Centres Authority has launched the Foreign Currency Settlement System (FCSS), operated by CCIL IFSC Limited (CIL), to facilitate foreign currency transaction settlements. Initially, the system supports United States Dollar (USD) transactions using a gross settlement procedure. The system operates between 08:00 and 20:00 IST on business days and utilizes ISO 20022 messaging standards. IFSC Banking Units (IBUs) are eligible to participate in the FCSS provided they meet the access criteria and follow the application procedures specified in the Bye-Laws, Rules, and Regulations (BRR) prepared by CIL. Once admitted, participants must adhere to the BRR and any subsequent instructions issued by the Authority.
What you must do
Key dates
Who is affected
International Financial Services Centres Authority CIRCULAR
E. File.no. IFSCA-FMPP0BR/12/2023-Banking October 7, 2025
To, All IFSC Banking Units
Dear Sir/Madam,
Foreign Currency Settlement System– Instructions for IFSC Banking Units
The Foreign Currency Settlement System (FCSS) has been launched today.
The Authority has authorised CCIL IFSC Limited (“CIL”) under the provisions of Section 7 of the Payment and Settlement Systems Act, 2007, and Regulation 6 of the International Financial Services Centres Authority (Payment and Settlement Systems) Regulations, 2024, read with Section 12 and Section 13 of the International Financial Services Centres Authority Act, 2019 to operate the FCSS. CIL has entered into an agreement with Standard Chartered Bank, IBU (SCB) to act as the Settlement Bank for the FCSS.
The Authority has notified¹ the Bye-Laws, Rules and Regulations (BRR) prepared by CIL as the regulation, guideline, instruction or direction governing the operations of the FCSS in exercise of the powers conferred under sub-section 1 of Section 10 of the Payment and Settlement Systems Act, 2007 and Regulation 9 of the International Financial Services Centres Authority (Payment and Settlement Systems) Regulations, 2024 read with Section 12 and Section 13 of the International Financial Services Centres Authority Act, 2019,
Features of FCSS
i. The FCSS shall settle transactions undertaken in foreign currency.
ii. To start with, the FCSS shall settle transactions undertaken in United States Dollar (USD)
iii. The payment obligations and settlement instructions among the FCSS participants shall be determined in accordance with the gross settlement procedure
iv. The operating hours of the FCSS shall be 08.00 hrs IST to 20.00 hrs IST on all business days of the FCSS.
v. The FCSS system is compatible with the ISO 20022 messaging standards
i. IBUs are eligible to be members of the FCSS subject to satisfaction of the access criteria laid down in the BRR.
ii. IBUs shall apply to CIL for becoming members of the FCSS as per the procedure laid down in the BRR.
iii. Once admitted to the membership of FCSS, IBUs shall comply with the requirements of the BRR along with the instructions, if any, issued by the Authority from time to time.
Yours faithfully
(Supriyo Bhattacharjee) Chief General Manager Department of Banking Regulation
¹ Vide circular E.File.no.IFSCA-FMPP0BR/6/2024-Banking dated October 3, 2025
