India & New Zealand Conclude Financial Services Annex Of Free Trade Agreement

New Delhi, Dec 23 (KNN) India and New Zealand on December 22, 2025, concluded negotiations on the Financial Services Annex of the India–New Zealand Free Trade Agreement (FTA). The annex was finalised during the last round of negotiations held on December 10, 2025.

The Financial Services Annex establishes a dedicated institutional and regulatory framework aimed at enhancing collaboration, improving market access and deepening integration between the two countries’ financial systems. 

Both sides described the agreement as forward-looking, balanced and mutually beneficial.

Beyond Standard WTO Commitments

The annex represents a significant advancement beyond standard General Agreement on Trade in Services (GATS) commitments, expanding into 18 detailed articles. 

It is intended to create new opportunities across banking, insurance, fintech and related financial services, while ensuring regulatory safeguards for both jurisdictions.

Digital Payments and Fintech Cooperation

A key feature of the annex is cooperation on electronic payments and real-time transaction infrastructure. 

India and New Zealand have agreed to collaborate on domestic payment interoperability and real-time cross-border remittances and merchant payments through integrated fast payment systems. This is expected to support remittance flows, enhance cross-border digital payments and create opportunities for payment service providers.

The agreement also includes provisions to strengthen cooperation in financial technology and regulatory innovation. Both countries will explore learning from each other’s regulatory and digital sandbox frameworks, facilitating cross-border fintech experimentation, regulatory knowledge exchange and collaboration between fintech firms.

Data, Credit Ratings and Non-Discrimination

The annex recognises each country’s right to maintain its legislative and regulatory requirements governing the transfer, processing and storage of financial information. It seeks to facilitate cross-border digital financial operations while preserving regulatory oversight, data sovereignty and consumer protection.

Provisions on credit rating and non-discrimination aim to ensure that Indian financial institutions are not subject to arbitrary or discriminatory credit assessment practices in the New Zealand market. 

These measures are intended to ensure parity of treatment with domestic institutions and support fair market access for banks, insurers and other financial service suppliers.

Back-Office Services and Operational Support

India and New Zealand have also committed to supporting back-office and financial services support functions. The provision is expected to leverage India’s strengths in information technology and business process services, enabling cost-efficient service delivery through centralised operations and supporting growth in related sectors.

Market Access, FDI and Banking Presence

The schedules of specific commitments reflect expanded market access and national treatment in key banking and insurance sectors. 

India has offered enhanced foreign direct investment limits in banking and insurance, along with a more liberal bank branch licensing framework. Under the annex, up to 15 bank branches may be established over a four-year period, an increase from the earlier GATS limit of 12 branches.

These commitments are expected to facilitate the expansion of Indian financial institutions in New Zealand, while also positioning New Zealand firms to access India’s growing financial services market.

Current Presence and Expected Impact

At present, two Indian banks—Bank of Baroda and Bank of India—operate in New Zealand through subsidiaries with a combined four branches. 

New Zealand currently has no banking or insurance presence in India, and no Indian insurance companies operate in New Zealand.

Both governments have indicated that the agreement is intended to serve as a catalyst for deeper engagement in the evolving financial services landscape.

(KNN Bureau)