New Delhi/Zurich: Money deposited by Indian individuals and firms in Swiss banks, including India-based branches and other financial institutions, touched a 14-year high of 3.83 billion Swiss francs (over Rs 30,500 crore) in 2021. A sharp jump in holdings through securities and similar instruments, while customer deposits also rose, annual data from Switzerland’s central bank showed on Thursday.
increase in total wealth The number of Indian clients with Swiss banks is the second consecutive year of growth, from 2.55 billion Swiss francs (Rs 20,700 crore) at the end of 2020.
apart from this money held Savings or deposit accounts of Indian customers hit a seven-year high of nearly Rs 4,800 crore, reversing a two-year declining trend.
A total of CHF 3,831.91 million described by the SNB as ‘total liabilities’ of Swiss banks or ‘dues’ to their Indian customers at the end of 2021, including CHF 602.03 million in customer deposits (up from CHF 504 million in 2020) . -end), CHF 1,225 million (above CHF 383 million) held through other banks, and CHF 3 million through fiduciaries or trusts (above CHF 2 million).
The highest component of CHF 2,002 million (up from CHF 1,665 million) was ‘other amounts payable to customers’ in the form of bonds, securities and various other financial instruments.
The total amount was at a record high of around 6.5 billion Swiss francs in 2006, after which it has mostly been on the downside, except for a few years in 2011, 2013, 2017, 2020 and now 2021. Swiss National Bank (SNB) data.
While there was a decline in all four components during 2019, the year 2020 saw a significant decline in customer deposits, while 2021 saw an increase across all categories.
These are official figures reported by banks to the SNB and do not indicate the quantum of the much talked about alleged black money held by Indians in Switzerland. These figures also do not include money that Indians, NRIs or others may have in Swiss banks in the name of third country entities.
According to SNB, its data for ‘total liabilities’ of Swiss banks towards Indian customers takes into account all types of funds held by Indian customers in Swiss banks, including deposits from individuals, banks and enterprises. This includes branches of Swiss banks in India as well as non-deposit liabilities.
On the other hand, the ‘local banking data’ of the Bank for International Settlement (BIS), which has in the past been described by Indian and Swiss authorities as a more reliable measure for deposits by Indian individuals in Swiss banks, showed a decline. . After rising nearly 39 per cent to USD 125.9 million (Rs 932 crore) during 2020, such funds grew by 8.3 per cent to USD 115.5 million (Rs 927 crore at current exchange rates) during 2021.
This figure takes into account deposits as well as loans of Indian non-bank customers of Swiss-dominated banks and had increased by 7 per cent in 2019 after falling by 11 per cent in 2018 and 44 per cent in 2017. exceeded USD 2.3 billion (over Rs 9,000 crore) at the end of 2007.
The Swiss authorities have always maintained that the assets of Indian residents in Switzerland cannot be treated as ‘black money’ and actively support India in the fight against tax fraud and evasion.
Automatic exchange of information on tax matters between Switzerland and India has been in place since 2018. Under this framework, detailed financial information on all Indian residents holding accounts with Swiss financial institutions since 2018 was first provided to Indian tax authorities in September. 2019 and it has to be done every year.
In addition, Switzerland is actively sharing details of accounts of Indians who are suspected of having indulged in financial wrongdoing after producing prima facie evidence. Such exchange of information has happened in hundreds of cases so far.
Overall, customer deposits across the Swiss banking spectrum, which includes 239 banks, increased to approximately CHF 2.25 trillion in 2021. The total funding of foreign clients, including institutions, increased to around 1.5 trillion CHF (Rs 118 lakh crore).
In terms of assets (or money payable from customers), Indian customers accounted for around 10 per cent of CHF 4.68 billion at the end of 2021. This includes outstanding dues of around 323 million CHF from Indian customers after a growth of 25 per cent during the year.
While the UK tops the chart for foreign clients’ money in Swiss banks at CHF 379 billion, it is followed by the US (CHF 168 billion) – the only two countries with more than 100 billion client funds.
Others in the top 10 were the West Indies, Germany, France, Singapore, Hong Kong, Luxembourg, the Bahamas, the Netherlands, the Cayman Islands and Cyprus.
India was ranked 44th ahead of countries such as Poland, South Korea, Sweden, Bahrain, Oman, New Zealand, Norway, Mauritius, Bangladesh, Pakistan, Hungary and Finland.
Among the BRICS countries, India ranks below Russia (15th) and China (24th), but above South Africa and Brazil.
Others placed over India include UAE, Australia, Japan, Italy, Spain, Panama, Saudi Arabia, Mexico, Israel, Taiwan, Lebanon, Turkey, Austria, Ireland, Greece, Bermuda, Marshall Islands, Liberia, Belgium, Malta, Canada is included. Portugal, Qatar, Egypt, Thailand, Kuwait and Jordan.
Pakistan saw an increase in the funds of its citizens and enterprises to CHF 712 million, while for Bangladesh it increased to CHF 872 million.
Like in India, the issue of alleged black money in Swiss banks has been a political hotbed in both the neighboring countries.
Following the release of the annual data last year, the Indian government had sought details from the Swiss authorities regarding the facts as well as their views on possible reasons for the change in funds deposited by individuals and entities in 2020.
In its statement, the Finance Ministry had said that the figures “do not indicate the amount of alleged black money held by Indians in Switzerland. Further, these figures do not include money held by Indians, NRIs or others in Swiss countries.” Maybe in banks. In the name of third country entities.”
It also listed reasons that could have led to an increase in deposits, including increased business transactions by Indian companies, an increase in deposits due to the business of Swiss bank branches located in India, and an increase in inter-bank transactions between Swiss and Indian. was involved. Bank.