India–New Zealand Seal Financial Services Pact
FTA Annex Opens New Avenues for Fintech, Digital Payments and Banking Cooperation
- India, New Zealand conclude Financial Services Annex under FTA
- Pact includes digital payments, fintech, data transfer and back-office services
- Indian banks, insurers get parity with New Zealand institutions
- Agreement positions India as a global fintech and payments hub
GG News Bureau
New Delhi, 23rd Dec: India and New Zealand have successfully concluded negotiations on the Financial Services Annex of the India–New Zealand Free Trade Agreement (FTA), marking a major milestone in bilateral economic cooperation. The agreement was finalised on December 22, 2025, following negotiations that began in May this year.
The annex, forming part of the Trade in Services chapter, has evolved into a comprehensive framework of 18 articles, drawing from India’s previous FTA experience. It is designed as a forward-looking and balanced agreement to enhance cooperation in banking, insurance, fintech, digital payments and financial support services.
A key highlight of the pact is collaboration on electronic payments and real-time transaction infrastructure, opening market opportunities for Indian payment service providers by leveraging platforms such as Unified Payments Interface and National Payments Corporation of India. The provision is expected to strengthen cross-border remittances, merchant payments and diaspora-linked financial flows.
The annex also promotes cooperation in financial technology and regulatory innovation, with both sides agreeing to share learnings from regulatory and digital sandbox frameworks. This is expected to position India as a fintech hub while enabling Indian startups to collaborate with a developed economy.
Provisions on transfer and protection of financial information ensure regulatory control over data sovereignty and consumer privacy, while facilitating cross-border digital operations. Importantly, the agreement guarantees non-discriminatory treatment for Indian banks and insurance companies in New Zealand, ensuring parity with domestic institutions.
The pact further supports back-office and support services, leveraging India’s strength in IT and business process outsourcing, and allows enhanced FDI limits and bank branch expansion, permitting up to 15 bank branches over four years.
Currently, Indian banks such as Bank of Baroda and Bank of India operate limited branches in New Zealand, while New Zealand has no banking or insurance presence in India. The new FTA framework is expected to catalyse greater bilateral investment, institutional presence and services delivery, deepening financial integration between the two economies.
