India-New Zealand deal to boost payment interoperability

NEW DELHI: India and New Zealand have committed to collaborate on developing domestic payments interoperability and supporting real-time cross-border remittances and merchant payments through the integrated Fast Payment Systems (FPS) as part of the trade pact agreed between the two countries.This move strengthens India’s digital payments ecosystem and fintech sector, enhances remittance flows from the Indian diaspora, creates market opportunities for Indian payment service providers and leverages India’s technological expertise in digital payment systems, such as UPI and NPCI.An official statement said India’s sectoral offers represent a forward-looking liberalisation approach, with enhanced FDI limits in banking and insurance. There is also a liberalised bank branch licensing framework, allowing up to 15 bank branches to be set up over four-years. “This is a significant expansion from the previously offered GATS limits of 12 branches. These offers will enable Indian financial service suppliers to expand operations into New Zealand, strengthening India’s position in financial services exports and cultivating progressive sectoral growth,” the statement added. It said the move also positions New Zealand’s financial institutions competitively in India’s rapidly expanding financial services market, while reflecting New Delhi’s commitment to market liberalisation in line with its broader strategic objectives.With regard to transfer and protection of financial information both countries have recognized each party’s right to maintain legislative and regulatory requirements linked to the transfer, processing and storage of financial information, and aims to facilitate financial service suppliers to establish cross-border digital operations while ensuring regulatory control over data sovereignty and consumer privacy protections.