GIFT City’s Dollar Settlement System
SWIFT alternative in India:
On October 7, 2025, India launched real-time USD settlement at GIFT City. The system cuts transaction times from hours to seconds for dollar trades between banks operating in India’s International Financial Services Centre.
CCIL IFSC built the Foreign Currency Settlement System. Standard Chartered acts as the settlement bank. When banks in GIFT City trade dollars, the system clears everything locally in real time.
The key part: it bypasses SWIFT for intra-GIFT transactions.
SWIFT still matters for cross-border payments leaving or entering India. But for trades between IFSC Banking Units within GIFT City, the platform handles everything internally. No offshore clearing houses. No external networks. No delays.
Why Independence Matters
When USD trades clear through offshore systems, India depends on infrastructure it doesn’t control. Fees go to external networks. Settlement takes hours and days because transactions route through multiple intermediaries. Banks wait for confirmations from clearing houses abroad. The new system eliminates that dependency. CCIL IFSC operates the platform. IFSCA regulates it. Standard Chartered settles it. All Indian jurisdiction. All local control.
If Bank A owes Bank B dollars from a trade, CCIL IFSC clears it instantly. Surpluses and deficits balance within the system. No money leaves India unless it needs to.
Speed Matters
Real-time settlement changes how banks manage liquidity. Before, they had to park extra dollars to cover the lag between trade and settlement. Now they can deploy capital more efficiently because they know exactly when transactions clear.
Foreign investors benefit too. Moving money in and out of GIFT City becomes faster. Trade finance speeds up. The entire flow of capital gets smoother.
The system also reduces costs. SWIFT charges fees. Offshore clearing houses charge fees. Every intermediary takes a cut. Local clearing eliminates most of those costs.
Strategic Angle
Singapore has real-time dollar clearing. Hong Kong has it. Dubai has it. GIFT City needed it to compete. But this goes beyond competition. India built infrastructure that works independently of Western financial networks. That independence matters more than the cost savings.
USA has demonstrated that its financial system SWIFT can be weaponized. USA prohibited Russia from approaching SWIFT and confiscated sovereign funds of Russia.
If global payment systems face disruptions, GIFT City’s dollar clearing keeps running. If geopolitical tensions affect SWIFT access, India has alternatives. The platform isn’t just faster. It’s sovereign.
What Happens Next
More banks will join as the platform proves itself. Network effects matter in clearing systems. The more banks participate, the more liquidity pools in one place, the better the system works for everyone.
GIFT City already runs settlement systems for bullion, derivatives, and trade finance. Dollar clearing was the missing piece. Now the infrastructure is complete.
India spent years building this. Not for headlines. For the plumbing that makes financial hubs work. The settlement system looks boring. It’s supposed to. Good infrastructure disappears into the background and just works.
GIFT City now has what Singapore took decades to build. Whether it can compete on equal terms depends on execution, not infrastructure. The tools are there.