Indians' Funds In Swiss Banks Rise To Over ₹ 20,000 Crore: Here's How

 Indians' Funds In Swiss Banks Rise To Over ₹ 20,000 Crore: Here's How

Funds parked by Indian individuals and firms in Swiss banks, rose to over ₹ 20,700 crore in 2020 on a sharp surge in holdings, though customer deposits fell for the second straight year

Banking & Financial Services Press Trust of India Updated: June 17, 2021 7:56 pm IST

Indians' Funds In Swiss Banks Rise To Over Rs 20,000 Crore: Here's How

The funds rose on a sharp surge in holdings through securities and similar instruments

Funds parked by Indian individuals and firms in Swiss banks, including through India-based branches and other financial institutions, jumped to 2.55 billion Swiss francs (over ₹ 20,700 crore) in 2020 on a sharp surge in holdings via securities and similar instruments, though customer deposits fell, annual data from Switzerland's central bank showed on Thursday.

The increase in aggregate funds of Indian clients with Swiss banks, from 899 million Swiss francs (Rs 6,625 crore) at the end of 2019, reverses a two-year declining trend and has taken the figure to the highest level in 13 years.

It stood at a record high of nearly 6.5 billion Swiss francs in 2006, after which it has been mostly on a downward path, except for a few years including in 2011, 2013 and 2017, as per the Swiss National Bank (SNB) data.

The total amount of CHF 2,554.7 million (Rs 20,706 crore), described by the SNB as ''total liabilities'' of Swiss banks or ''amounts due to'' their Indian clients at the end of 2020, included CHF 503.9 million (over ₹ 4,000 crore) in customer deposits, CHF 383 million (over ₹ 3,100 crore) held via other banks, CHF 2 million (Rs 16.5 crore) through fiduciaries or trusts and the highest component of CHF 1,664.8 million (nearly ₹ 13,500 crore) as ''other amounts due to customers'' in form of bonds, securities and various other financial instruments.

While the funds classified as ''customer account deposits'' have actually declined from CHF 550 million at the end of 2019 and those through fiduciaries also more than halved from CHF 7.4 million, the money held via other banks rose sharply from CHF 88 million in this period.

However, the biggest difference has been a surge in ''other amounts due to customers'' from India, which rose over six times from CHF 253 million at 2019-end. All four components had declined during 2019.

These are official figures reported by banks to the SNB and do not indicate the quantum of the much-debated alleged black money held by Indians in Switzerland. These figures also do not include the money that Indians, NRIs or others might have in Swiss banks in names of third-country entities.

According to the SNB, its data for ''total liabilities'' of Swiss banks towards Indian clients takes into account all types of funds of Indian customers at Swiss banks, including deposits from individuals, banks and enterprises. This includes data for branches of Swiss banks in India, as also non-deposit liabilities.

On the other hand, the ''locational banking statistics'' of the Bank for International Settlement (BIS), which have been described in the past by Indian and Swiss authorities as a more reliable measure for deposits by Indian individuals in Swiss banks, show an increase of nearly 39 per cent during 2020 in such funds to $ 125.9 million (Rs 932 crore).

This figure takes into account deposits as well as loans of Indian non-bank clients of Swiss-domiciled banks and had shown an increase of 7 per cent in 2019, after declining by 11 per cent in 2018 and by 44 per cent in 2017. It peaked at over $ 2.3 billion (over ₹ 9,000 crore) at the end of 2007.

Funds Of Indians In Swiss Banks Over 20,000 Crore? Not True, Says Centre

Funds Of Indians In Swiss Banks Over 20,000 Crore? Not True, Says Centre

Inside A Secretive Swiss Bank For The World's Richest People

India Gets 2nd Set Of Swiss Bank Account Details To Help Curb Black Money

Swiss authorities have always maintained that assets held by Indian residents in Switzerland cannot be considered as ''black money'' and they actively support India in its fight against tax fraud and evasion. An automatic exchange of information AEOI in tax matters between Switzerland and India has been in force since 2018.

Under this framework, detailed financial information on all Indian residents having accounts with Swiss financial institutions since 2018 was provided for the first time to Indian tax authorities in September 2019 and this is to be followed every year.

In addition to this, Switzerland has been actively sharing details about accounts of Indians suspected to have indulged in financial wrongdoings after submission of prima facie evidence. Such exchange of information has taken place in hundreds of cases so far.

Overall, customer deposits in all Swiss banks rose in 2020 to nearly CHF 2 trillion, which included over CHF 600 billion of foreign customer deposits. While the UK topped the charts for foreign clients' money in Swiss banks at CHF 377 billion, it was followed by the US (CHF 152 billion) at the second spot -- the only two countries with 100-billion-plus client funds. Others in the top 10 were West Indies, France, Hong Kong, Germany, Singapore, Luxembourg, Cayman Islands, and Bahamas.

India was placed at 51st place, ahead of countries like New Zealand, Norway, Sweden, Denmark, Hungary, Mauritius, Pakistan, Bangladesh and Sri Lanka. Among BRICS nations, India stood below China and Russia, but above South Africa and Brazil.

Others placed above India included Netherlands, UAE, Japan, Australia, Italy, Saudi Arabia, Israel, Ireland, Turkey, Mexico, Austria, Greece, Egypt, Canada, Qatar, Belgium, Bermuda, Kuwait, South Korea, Portugal, Jordan, Thailand, Seychelles, Argentina, Indonesia, Malaysia and Gibraltar.

The countries for which Swiss banks reported a decline in amounts due to clients included the US and UK, while the money parked by individuals and enterprises from Bangladesh also declined during 2020. However, the amount almost doubled in the case of Pakistan to over CHF 642 million.

Just like India, the issue of alleged black money in Swiss banks has been a political hot potato in the two neighbouring countries as well. As per the SNB, there were 243 banks in Switzerland at the end of 2020. 

Funds Of Indians In Swiss Banks Over 20,000 Crore? Not True, Says Centre

Finance Ministry said media reports allude to the fact that figures reported are official figures reported by banks to the Swiss National Bank (SNB) and do not indicate the quantum of much-debated alleged black money held by Indians in Switzerland.

June 19, 2021 12:25 pm IST

Finance Ministry refuted claims that funds of Indians in Swiss Banks have risen.

New Delhi: The Finance Ministry on Saturday refuted claims that funds of Indians in Swiss Banks have risen to over ₹ 20,700 crore in 2020, the highest figure of deposits in the last 13 years.

"Certain reports have appeared in the media on 18.06.2021 stating that funds of Indians in Swiss Banks have risen to over ₹ 20,700 crore (CHF 2.55 billion) at the end of 2020 from ₹ 6,625 crore (CHF 899 million) at the end of 2019, reversing a 2-year declining trend. It has also been stated that this is also the highest figure of deposits in the last 13 years," the ministry said.

The ministry said that the media reports allude to the fact that the figures reported are official figures reported by banks to the Swiss National Bank (SNB) and do not indicate the quantum of much-debated alleged black money held by Indians in Switzerland.

Further, these statistics do not include the money that Indians, NRIs or others might have in Swiss banks in the names of third-country entities.

However, the customer deposits have actually fallen from the end of 2019. The funds held through fiduciaries have also more than halved from the end of 2019. The biggest increase is in "Other amounts due from customers". These are in form of bonds, securities and various other financial instruments.

It is pertinent to point out that India and Switzerland are signatories to the Multilateral Convention on Mutual Administrative Assistance in Tax Matters (MAAC) and both countries have also signed the Multilateral Competent Authority Agreement (MCAA) pursuant to which, the Automatic Exchange of Information (AEOI) is activated between the two countries for sharing of financial account information annually for the calendar year 2018 onwards.

Indians' Funds In Swiss Banks Rise To Over Rs 20,000 Crore: Here's How

Exchanges of Financial Account information in respect of residents of each country have taken place between both countries in 2019 as well as 2020.

In view of the existing legal arrangement for the exchange of information of financial accounts (which has a significant deterrent effect on tax evasion through undisclosed assets abroad), there does not appear to be any significant possibility of the increase of deposits in the Swiss banks which is out of undeclared incomes of Indian residents.

The Finance Ministry has also sought the relevant facts from Swiss Authorities along with their view on possible reasons for the increase/decrease in funds.

Swiss Bank Black Money: కోవిడ్ వ్యాప్తి సమయంలో 13 ఏళ్ల రికార్డులకు బ్రేక్.. దేశం దాటిన రూ. 20 వేల కోట్లు

swiss bank black money: దేశ ఆర్థిక వ్యవస్థపై కరోనా ప్రభావం తీవ్రంగా పడింది.  కానీ  అదే సమయంలో నల్ల డబ్బు దేశం సరిహద్దుల దాటింది. ఇలా దేశం దాటిన సొమ్ము ఒకటి.. రెండు కోట్లు కాదు.. వేల కోట్లు..

author

Sanjay Kasula

Publish Date - 4:15 pm, Fri, 18 June 21

Swiss Bank Black Money: కోవిడ్ వ్యాప్తి సమయంలో 13 ఏళ్ల రికార్డులకు బ్రేక్.. దేశం దాటిన రూ. 20 వేల కోట్లు

Swiss Banks

దేశ ఆర్థిక వ్యవస్థపై కరోనా ప్రభావం తీవ్రంగా పడింది.  కానీ  అదే సమయంలో నల్ల డబ్బు దేశం సరిహద్దుల దాటింది. ఒకటి… రెండు కోట్లు కాదు.. వేల కోట్ల రూపాయల నల్ల దనం దేశం దాటి పోయింది. ఇది మనం చెప్పిన లెక్కలు కాదు స్వయంగా సెంట్రల్ బ్యాంక్ ఆఫ్ స్విట్జర్లాండ్ విడుదల చేసిన నివేదిక. ఇది కొందరు వ్యక్తుల నుంచి మాత్రమే కాదు.. దేశంలోని పెద్ద వ్యాపార సంస్థల నుంచి అక్కడి చేరి నల్ల కట్టలు. స్విస్ నేషనల్ బ్యాంక్ ఈ గణాంకాలు తాజాగా విడుదల చేసింది. స్విట్జర్లాండ్ సెంట్రల్ బ్యాంక్(ఎస్ఎన్‌బి) విడుదల చేసిన ఈ గణాంకాల ప్రకారం స్విస్ బ్యాంకుల్లో ఈ ఏడాది భారీ రికార్డులను నమోదు చేసినట్లుగా వెల్లడించింది.

ఇందులో జమ చేసిన కొందరు వ్యక్తులతోపాటు కొన్ని వ్యాపార సంస్థలు తమ నల్ల డబ్బును స్విస్ బ్యాంకుల్లో తమ డిపాజిట్లు చేశారు. సెంట్రల్ బ్యాంక్ ఆఫ్ స్విట్జర్లాండ్ గురువారం విడుదల చేసిన వార్షిక గణాంకాల ప్రకారం 2020 సంవత్సరంలో స్విస్ బ్యాంకుల్లో భారతీయులు..  భారతీయ కంపెనీల ద్వారా డిపాజిట్ల పేరుతో సుమారు 2.55 బిలియన్ స్విస్ ఫ్రాంక్‌లు వచ్చి చేరాయని ప్రకటించింది. అంటే రూ .20,700 కోట్లకు పైగా నల్ల డబ్బు అక్కడికి చేరింది. అక్కడి బ్యాంకుల్లో భారతీయ నోట్ల కట్టలు వచ్చి చేరాయని తెలిపింది. ఇది ఏ స్థాయిలో ఉందంటే గత 13 ఏళ్లలో డిపాజిట్ కాని మొత్తం ఈ ఏడాది అక్కడి చేరాయని వెల్లడించింది.

స్విస్ బ్యాంకుల్లో భారతీయులు, భారతీయ కంపెనీల డిపాజిట్లు 2019 చివరినాటికి సుమారు 899 మిలియన్ ఫ్రాంక్‌లు (రూ .6,625 కోట్లు) ఉన్నాయి. అదే సమయంలో 2020 సంవత్సరం చివరి నాటికి మొత్తం డిపాజిట్ మొత్తం రూ .20,706 కోట్లకు పెరిగింది. ఈ మొత్తంలో రూ .4,000 కోట్లకు పైగా కస్టమర్ డిపాజిట్లు వచ్చాయని పేర్కొంది. ఇతర బ్యాంకుల ద్వారా రూ .3,100 కోట్లకు పైగా వచ్చి చేరినట్లుగా వారి రిపోర్ట్‌లో వెల్లడించింది. ట్రస్టుల ద్వారా సుమారు 13500 కోట్ల రూపాయలు వచ్చి చేరాయి.

2006 సంవత్సరంలో కూడా రికార్డు 

నివేదిక ప్రకారం భారతీయులు మరియు కంపెనీలు స్విస్ బ్యాంకుల్లో డబ్బు జమ చేసిన సమాచారం గతంలో 2006 సంవత్సరంలో రికార్డు సృష్టించింది. ఆ సమయంలో భారతీయుల నల్ల డబ్బుల నిక్షేపాలు 6.5 బిలియన్ స్విస్ ఫ్రాంక్‌లు. అయితే, 2011, 2013, 2017 సంవత్సరాలను మినహాయించి. చాలా సంవత్సరాలలో ఈ క్షీణత కనిపించింది.

2017లో పరిస్థితి మారింది..

స్విస్ బ్యాంకుల్లో జమ అవుతున్న భారతీయుల డబ్బు మూడేళ్ల నుంచి తగ్గుతూ వస్తోంది అంటే సరిగ్గా 2017 వరకు తగ్గింది. కానీ 2017లో పరిస్థితి మారింది. గత ఏడాది స్విస్ బ్యాంకులో ఉన్న భారతీయుల డబ్బు 50 శాతం పెరిగింది.

ఇచ్చిన అన్ని నిధుల రికార్డు

ఎస్ఎన్బి ప్రకారం, స్విస్ బ్యాంకుల భారతీయ కస్టమర్ల నుండి, వ్యక్తులు, బ్యాంకులు, సంస్థల డిపాజిట్లతో సహా అన్ని రకాల నిధులను స్విస్ బ్యాంకులలో భారతీయులు జమ చేసినట్లుగా తెలుస్తోంది. స్విట్జర్లాండ్‌లోని భారతీయుల నల్లధనం మొత్తం ఎంత ఉంటుందనేది ఇప్పటి వరకు లెక్క తేల లేదు.  

The legal basis for the implementation of AEOI in Switzerland came into force on January 1, 2017. ... Switzerland agreed to AEOI with India after a long process, including a review of the necessary legal framework in India on data protection and confidentiality.

Automatic exchange of information (AEOI) provides for the automatic exchange of a

Switzerland and India signed a Joint Declaration on the introduction of Automatic Exchange of Information (AEOI) on Tax matters on 22 November 2016 on reciprocal basis. The joint declaration was signed by Mr. Shushil Chandra, Chairman, CBDT and Mr. Gilles Roduit, Deputy Chief of Mission, Swiss Embassy in New Delhi. With signing of the AEOI, it is expected that India would start receiving information on accounts held by Indian residents in Switzerland from Sept. 2019 for 2018 and subsequent years on an automatic basis.