01NETTING
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Obligation compression, observed
Every working day, scheduled commercial banks in India settle hundreds of thousands of bilateral cross-border obligations on a gross basis — each trade moving in full across correspondent rails, each leg demanding its own liquidity line.
The result is an interbank market that is mechanically illiquid long before it is economically illiquid: balance sheets swollen with intraday float, credit lines committed to pay flows that a counterparty is simultaneously paying back.
GILON removes the redundancy. A single netting cycle collapses the gross obligation set into one net position per participant, settled once, with finality, inside the IFSC settlement window.
"The case for multilateral netting is not that it is faster. It is that the alternative asks participants to carry liquidity against obligations that, by construction, do not exist." — IFSCA Working Paper on FMI Efficiency, 2025
Each node represents a settlement participant. In a bilateral world, every institution settles with every other — individually, expensively, redundantly. Click a node to see GILON collapse that into one.
International Financial Services Centres Authority — unified regulator for all financial services within GIFT-IFSC. Established under the IFSCA Act, 2019.
GILON's authorisation pathway is governed by the IFSCA (Payment and Settlement Systems) Regulations, 2024, notified 14 October 2024 under F.No. IFSCA/GN/2024/009. The authorisation process involves in-principle approval followed by an Authorisation Certificate upon satisfaction of all statutory conditions.
Principles for Financial Market Infrastructures — CPMI–IOSCO international standards for systemically important payment systems, CCPs, CSDs, and trade repositories.
Under Regulation 8 of the IFSCA PSS Regulations 2024, every System Provider must comply on an ongoing basis with the 24 PFMI Principles. GILON is being designed from inception to satisfy these standards — covering credit risk, liquidity risk, settlement finality, and default management.
The Payment and Settlement Systems Act, 2007 — the foundational statute under which payment systems in India are authorised and regulated.
Under Regulation 14 of the IFSCA PSS Regulations 2024, the PSS Act 2007 continues to apply within the IFSC as carried forward. Section 23 of the PSS Act provides the statutory basis for settlement finality and irrevocability — the legal foundation for GILON's T+0 settlement model.
The Foreign Exchange Management Act — governing cross-border capital and current account transactions, permissible settlement currencies, and authorised dealer obligations.
GILON's cross-border settlement model operates within the IFSC dollar-settlement perimeter. INR flows are intermediated through AD Category I banks under extant LRS and trade-settlement regimes. All foreign exchange obligations comply with FEMA 1999 as applicable to IFSC entities.
In payment systems, infrastructure windows close once. Volume, mandate, and regulation are converging in 2026 — the combination will not repeat this decade.
The window between regulation being written and infrastructure being built is narrow. In payment systems, it closes once — and the first mover sets the standard.GILON Working Paper · 2026