Global Fintech Fest: FM launches foreign currency settlement system; India accounts for ‘half of world’s real-time digital transactions’

Union finance minister Nirmala Sitharaman on Tuesday launched the foreign currency settlement system in GIFT city on Tuesday, at the sixth Global Fintech Fest in Mumbai. With this, the GIFT IFSC has joined a select group of international financial centres that can settle foreign currency transactions locally.At the event, the FM also highlighted that India has now stepped in the global AI arena,with the $1.3 billion India AI mission.However, she also flagged the dark side of artificial intelligence, saying, “I’ve seen several deepfake videos of myself.”She said that the government is focused on supporting Global Capability Centres (GCCs). “We are working to strengthen the functioning of GCCs in India, there are 1,800 such entities in country,” she said.Highlighting the impact of Direct Benefit Transfers, the finance minister said, “Savings of Rs 4.31 lakh crore have accrued due to DBT.” “Public funds reach people that they are meant for, not to ghost entities.” Talking about businesses, she said, “We’d like to remain in fringes when it comes to business, technology,” adding “we want to enable businesses, not hinder their progress.”The minister also announced that financial technology has democratised finance in the country with India accounting for half of the world’s real-time digital transactions. She also said that fintech firms should focus on fundamentals “like revenue growth, innovative products, risk and compliance capabilities.”Apart from the finance minister, the event brought together industry leaders, policymakers and innovators for three days of discussions and exhibitions on the future of finance. The theme of this year’s GFF is ‘Empowering Finance for a Better World Powered by AI’, and the event is taking place at the Jio World Centre. It is expected to draw over one lakh visitors, with more than 7,500 companies taking part. Prime Minister Narendra Modi and UK Prime Minister Keir Starmer are also scheduled to deliver the keynote addresses on Thursday, followed by discussions with experts and industry stakeholders.The event will feature over 400 exhibitors showcasing new fintech solutions.