Other BriefingsIndia–New Zealand FTA: Financial Services Annex Unlocks Market Access for Banks, Fintech, and Digital Payments
India and New Zealand have concluded negotiations on the Financial Services Annex of the proposed India–New Zealand Free Trade Agreement (FTA), marking a significant step toward deeper bilateral integration in banking, insurance, fintech, and digital financial services.
Finalized on December 22, 2025, following negotiations that began in May 2025, the annex establishes a comprehensive regulatory and market access framework for financial services suppliers from both countries. The agreement was concluded during the final round of talks held on December 10, 2025, according to the Press Information Bureau (PIB).
The Financial Services Annex goes beyond standard WTO GATS commitments, expanding into a detailed framework of 18 articles designed to facilitate cross-border financial activity, encourage innovation, and provide regulatory certainty for financial institutions and service providers.
What does the India–New Zealand Financial Services Annex cover?
The annex sets out commitments across banking, insurance, digital payments, fintech innovation, data governance, and financial back-office services, creating a forward-looking and balanced agreement aligned with the evolving global financial services landscape.
It is intended to strengthen bilateral cooperation, accelerate market access, and enable deeper integration between the financial systems of India and New Zealand.
Digital payments and real-time transaction infrastructure
A central feature of the annex is cooperation on electronic payments and real-time transaction systems. India and New Zealand have committed to developing domestic payments interoperability and supporting real-time cross-border remittances and merchant payments through integrated Fast Payment Systems (FPS).
This provision creates direct market opportunities for Indian payment service providers by leveraging India’s globally recognized digital payments ecosystem, including UPI and NPCI platforms. It is also expected to enhance remittance efficiency for the Indian diaspora in New Zealand while reinforcing India’s position as a leader in digital public infrastructure.
Fintech cooperation and regulatory innovation
The agreement includes dedicated provisions on financial technology and regulatory collaboration, with both countries committing to learn from and cooperate through their respective Regulatory Sandbox and Digital Sandbox frameworks.
By enabling cross-border experimentation and regulatory learning, the annex positions India as a fintech hub within the bilateral partnership. It also supports Indian fintech companies seeking international expansion while strengthening domestic sandbox-led innovation and regulatory capacity building.
Data protection and cross-border financial information
On data governance, the annex recognizes each country’s right to maintain its own legislative and regulatory requirements concerning the transfer, processing, and storage of financial information.
At the same time, it facilitates cross-border digital operations for financial service suppliers, ensuring that innovation and efficiency are balanced with data sovereignty, consumer privacy, and regulatory oversight.
Non-discrimination and credit parity for Indian institutions
To support fair market access, the annex includes provisions on credit rating and non-discrimination, ensuring that Indian financial institutions operating in New Zealand are protected from arbitrary or discriminatory credit assessment or regulatory practices.
Indian banks, insurance companies, and other financial service suppliers will receive parity of treatment with New Zealand domestic institutions, improving operational certainty and reducing regulatory risk.
Back-office and financial services support functions
India and New Zealand have also committed to supporting the provision of back-office and financial services support functions, recognizing India’s world-leading capabilities in information technology and business process services (IT-BPS).
This enables cost-efficient delivery of financial services through centralized operations in India and is expected to support growth in India’s financial services exports, IT services sector, and business process outsourcing ecosystem. The provision reflects mutual recognition of India’s critical infrastructure role in global financial services delivery.
FDI liberalization and expanded bank branch access
The schedules of specific commitments under the annex reflect a progressive liberalization approach, with comprehensive market access and national treatment commitments in key banking and insurance sectors.
India has offered enhanced foreign direct investment (FDI) limits in banking and insurance, along with a liberalized bank branch licensing framework allowing up to 15 bank branches over a four-year period, compared with the earlier GATS limit of 12 branches.
These commitments are expected to enable Indian financial service suppliers to expand operations in New Zealand, while also positioning New Zealand’s financial institutions to participate competitively in India’s rapidly growing financial services market.
Why the Financial Services Annex matters for business and investors
Currently, Bank of Baroda and Bank of India operate in New Zealand through subsidiary structures with a combined total of four branches. New Zealand has no banking or insurance presence in India, and no Indian insurance companies currently operate in New Zealand.
By establishing clearer market access rules, regulatory transparency, and cooperation mechanisms, the Financial Services Annex is expected to catalyze greater bilateral investment, institutional presence, and cross-border service delivery.
For banks, insurers, fintech firms, and payment service providers, the annex provides a predictable framework for expansion, innovation, and partnership. For policymakers, it reinforces the strategic objective of positioning India as a global hub for digital payments, fintech innovation, and financial services delivery.
The conclusion of negotiations on the Financial Services Annex underscores both governments’ commitment to deepening economic ties and harnessing shared opportunities in a rapidly evolving, technology-driven financial services environment.
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