India and New Zealand have concluded negotiations on the Financial Services Annex of the proposed India–New Zealand Free Trade Agreement (FTA), marking a key step in strengthening bilateral economic and strategic ties. The talks were wrapped up on December 22, 2025, with the final round of negotiations held earlier on December 10.The Financial Services Annex is designed to create a forward-looking and mutually beneficial framework that enhances market access, regulatory cooperation and institutional linkages between the two countries. Expanding beyond standard World Trade Organization commitments under the General Agreement on Trade in Services (GATS), the annex comprises 18 articles covering a wide range of contemporary financial services issues.A major focus of the agreement is collaboration on electronic payments and real-time transaction infrastructure. Both sides have committed to working towards domestic payments interoperability and facilitating real-time cross-border remittances and merchant payments through integrated fast payment systems. This is expected to strengthen India’s digital payments ecosystem, support fintech innovation and open new opportunities for Indian payment service providers.The annex also places strong emphasis on financial technology and regulatory innovation. Provisions encourage cooperation between the two countries’ regulatory and digital sandbox frameworks, enabling knowledge exchange and cross-border experimentation while positioning India as a fintech hub within the partnership.In addition, the agreement addresses the transfer and protection of financial information, balancing cross-border digital operations with regulatory control over data sovereignty and consumer privacy. Commitments on non-discriminatory credit rating practices aim to ensure fair treatment for Indian financial institutions operating in New Zealand.Market access commitments include enhanced foreign direct investment limits in banking and insurance, along with a liberalised bank branch licensing regime allowing up to 15 branches over four years, an increase from earlier GATS offers. Together, these measures are expected to catalyse greater bilateral investment, expand institutional presence and deepen integration between the two financial systems.