Standard Chartered Leads Dollar Settlement GIFT City in Bank: What It Means for India Global Financial Aspirations

Standard Chartered Leads Dollar Settlement at GIFT City

Standard Chartered Becomes Dollar Settlement Bank at GIFT City

Standard Chartered Plc has been chosen to facilitate real-time settlement of dollar-denominated trades at GIFT City, India’s only international financial services centre. The initiative, expected to go live by June 2025, is part of a broader push to boost India’s financial infrastructure and enhance trade efficiency.

What Is GIFT City and Why It Matters

Gujarat International Finance Tec-City (GIFT City) is a flagship project of the Government of India aiming to provide world-class infrastructure for financial services. With more than 450 fintechs and multinational players onboard, GIFT City is positioning itself as India’s gateway to global capital flows.

How Dollar Settlement Will Help

Having a centralized dollar settlement bank brings numerous benefits:

Faster transaction settlements: Reduces trade completion time from days to hours
Cost efficiency: Eliminates expensive intermediary banking processes
Transparency: Enables improved audit trails and compliance checks
Onshore forex trading: Supports the government’s vision of bringing rupee-linked transactions onshore

Last year, CCIL (Clearing Corporation of India Ltd) also established a GIFT City unit to support local clearing services, a complementary step to this initiative.

Increasing Global Integration

This move follows a series of initiatives aimed at expanding India’s global financial integration:

Launch of USD-denominated BSE Sensex derivatives at India INX
Expansion of the 22-hour trading window
Regulatory incentives outlined in the Union Budget for GIFT IFSC

According to the IFSC regulator, foreign currency and interest rate derivatives trades at GIFT City reached $249 billion in December 2024, reflecting 68% year-on-year growth.

A Step Forward for India’s Financial Ecosystem

Chief Minister Bhupendra Patel emphasized that this step will make GIFT City a truly international hub, attracting more foreign investors and multinational banks.

“Standard Chartered’s role marks a major milestone in India’s journey to become a global financial hub,” he said.

Why Standard Chartered’s Role as Dollar Settlement Bank Matters

India’s ambition to become a global financial powerhouse takes a significant leap as Standard Chartered Bank is appointed as the dollar settlement bank for GIFT City (Gujarat International Finance Tec-City). Starting June 2025, this British banking giant will handle real-time dollar settlements for trades executed in India’s first and only International Financial Services Centre (IFSC).

This comes at a time when foreign exchange (forex) and derivatives trading is rapidly expanding in the IFSC. According to the IFSC Authority, foreign currency and interest rate derivative volumes hit $249 billion in December 2024, up 68% year-on-year.

What Is a Dollar Settlement Bank?

A dollar settlement bank ensures that international transactions—especially those involving the US Dollar—are cleared, settled, and recorded efficiently. In a globalized economy, this role is critical because:

It reduces reliance on third-party correspondent banks
Speeds up trade settlements
Reduces forex transaction costs and risks

How Will This Help Customers and Traders?

1. Faster Settlement Times

Traditional settlements via correspondent banks can take 1–2 business days. With Standard Chartered’s direct settlement system:

Trades settle in real-time or within hours
Reduced liquidity risk for brokers and investors

2. Lower Transaction Costs

A dedicated settlement bank cuts out intermediaries, slashing fees and avoiding currency conversion charges.

3. Enhanced Transparency

Standard Chartered’s infrastructure will bring audit trails, compliance visibility, and better security, especially useful for corporate treasuries and institutional traders.

Boosting GIFT City’s Global Position

GIFT City’s Strategic Goals:

Compete with Singapore, Dubai, and London as a global finance centre
Bring offshore dollar trading back onshore
Facilitate 22-hour trading days and USD-settled derivatives

GIFT City’s Achievements So Far:

450+ fintechs now registered
USD-denominated BSE Sensex derivatives now tradeable
Clearing Corporation of India Ltd (CCIL) already operational in the zone

Global Relevance: Aligning With Worldwide Financial Trends

The global push is toward T+1 and real-time gross settlement (RTGS) mechanisms for faster cross-border trades. GIFT City’s adoption of a dedicated dollar settlement bank is in sync with this movement, making India:

A more attractive hub for global funds
A participant in reshaping global finance architecture

Government and Policy Support

The Union Budget 2024-25 introduced tax incentives for GIFT City participants
The IFSC Authority (IFSCA) is encouraging more foreign banks and institutions to set up branches
Chief Minister Bhupendra Patel reiterated Gujarat’s commitment to making GIFT City the financial heartbeat of India

Summary: Key Highlights

Standard Chartered appointed as the dollar settlement bank at GIFT City
Real-time dollar settlements starting June 2025
Empowers onshore USD trades, supports rupee internationalization
Enhances GIFT City’s credibility as a global financial hub
Reduces cost, increases speed and transparency in forex transactions

Disclaimer—Estabizz Fintech Private Limited

This article is for informational purposes only and does not constitute financial, legal, or investment advice. While all efforts are made to ensure accuracy, readers are encouraged to verify facts independently and consult certified financial professionals before making investment decisions. Estabizz Fintech Private Limited shall not be held liable for any actions based on this article.

Contact Us: info@estabizz.com

Call Us: +91-98256-00907