India and New Zealand have concluded negotiations on the Financial Services Annex of the proposed India–New Zealand Free Trade Agreement (FTA), marking a major step forward in strengthening bilateral economic and strategic ties. The agreement was finalised on December 22, 2025, following the final round of talks held on December 10.
The conclusion of the Financial Services Annex establishes a comprehensive institutional and regulatory framework aimed at enhancing market access, promoting collaboration, and enabling deeper integration between the financial systems of the two countries. Both governments have described the agreement as forward-looking, balanced, and mutually beneficial, reflecting a shared commitment to expanding cooperation in financial services.
Beyond GATS: A Comprehensive Framework
The Financial Services Annex represents a significant advancement over standard WTO General Agreement on Trade in Services (GATS) commitments, expanding into 18 detailed articles. These provisions are designed to address contemporary financial services priorities, including digital payments, fintech innovation, data protection, and market access.
Boost to Digital Payments and Fintech Collaboration
A key highlight of the agreement is cooperation on electronic payments and real-time transaction infrastructure. India and New Zealand have agreed to work together on domestic payments interoperability and enable real-time cross-border remittances and merchant payments through integrated fast payment systems. This is expected to strengthen India’s digital payments ecosystem, support remittance flows from the Indian diaspora, and open new opportunities for Indian payment service providers by leveraging India’s technological expertise in platforms such as UPI and NPCI.
In addition, both sides have committed to enhanced collaboration in financial technology and regulatory innovation. The annex includes provisions for mutual learning from each other’s regulatory and digital sandbox frameworks, facilitating cross-border fintech experimentation. These measures position India as a fintech innovation partner within the bilateral framework and encourage collaboration between startups and regulators in both countries.
Data Protection, Credit Ratings and Market Fairness
The agreement also addresses the transfer and protection of financial information, recognising each country’s right to maintain its own legislative and regulatory requirements on data processing and storage. At the same time, it enables financial service suppliers to establish cross-border digital operations while safeguarding data sovereignty and consumer privacy.
To ensure a level playing field, the annex includes provisions on credit rating practices and non-discrimination, protecting Indian financial institutions from arbitrary or discriminatory treatment in the New Zealand market. This ensures parity with domestic institutions and facilitates smoother market entry for Indian banks, insurers and other financial service providers.
Back-Office Services and FDI Liberalisation
India and New Zealand have also agreed to support the provision of back-office and financial services support functions, leveraging India’s strengths in information technology and business process services. This is expected to enable cost-efficient service delivery through centralised operations in India, while boosting growth in the country’s IT and outsourcing sectors.
The schedules of specific commitments under the annex reflect a progressive approach to liberalisation. India has offered enhanced foreign direct investment (FDI) limits in banking and insurance, along with a more liberal bank branch licensing framework allowing up to 15 bank branches over four years, up from the earlier GATS limit of 12. These commitments are expected to strengthen India’s financial services exports while offering New Zealand institutions greater access to India’s expanding financial market.
Setting the Stage for Deeper Financial Integration
Currently, two Indian banks—Bank of Baroda and Bank of India—operate in New Zealand through subsidiaries with a combined four branches. New Zealand, however, has no banking or insurance presence in India, and Indian insurance companies are yet to establish operations in New Zealand. By providing clear market access commitments, regulatory transparency, and cooperation mechanisms, the Financial Services Annex is expected to catalyse greater bilateral investment and institutional presence.
Overall, the conclusion of negotiations on the Financial Services Annex underscores the shared ambition of India and New Zealand to deepen economic ties and harness opportunities in a rapidly evolving global financial services landscape. The agreement is poised to play a pivotal role in expanding bilateral engagement and fostering long-term cooperation between the two economies.