Remember when you used to gossip about the ‘Black Money’ stored in Swiss Banks? Do you know how much Indian money is stored in foreign banks? According to a Switzerland Bank, Indian funds have increased over Rs 20,700 Crores in 2020, the amount recorded for the highest deposit in 13 years.
According to National Swiss Bank data, The funds parked in the bank rose high as 6.5 Billion Swiss francs i.e is around 52,500 crores in the year 2006. Following this year, it has been a downward trend in Swiss Bank deposits.
Well, the rise in the fund deposits in the Swiss Bank this year has a twist. The funds that fall under “customer account deposits” declined from 550 million Swiss francs in 2019 to 503.9 million. The money held through fiduciaries and other trusts also reduced from 7.4 million Swiss francs (Rs 59.76 crore) to 2 million Swiss francs (Rs 16.5 crore).
However, the other amounts which were deposited via bonds, securities, and other financial tools have risen from 253 million Swiss francs (Rs 2,043 crore) to 1.66 billion Swiss francs (nearly Rs 13,500 crore), during the same period.
The data released in the annual report of the Swiss National Bank is a combination of official numbers reported to the central bank by various individual banks in the country. However, this data does not account for the alleged “black money” held by Indians in Switzerland, according to the PTI. It’s not inclusive of the funds that Indians might have in Swiss banks in names of third-country entities.
Meanwhile, the “locational banking statistics” of the Swiss Bank for International Settlement, show an increase of nearly 39% during 2020, in Indian deposits in Swiss banks, to $125.9 million (Rs 932 crore). This data has been described in the past by Indian and Swiss authorities as a more reliable source measure for deposits by Indian individuals in Swiss banks, PTI reported.
The figure, which also considers account deposits as well as loans of Indian non-bank clients of Swiss-domiciled banks, had risen by 7% in 2019.
In 2019, Swiss tax authorities shared with India the first lot of details about the money accounts of Indian clients in Swiss banks under the automatic information transfer framework between the two countries. However, the finance ministry had refused to share details of the data, saying such disclosures are prohibited under “confidentiality provisions” of a tax treaty between India and Switzerland.