INSUBCONTINENT EXCLUSIVE:
The funds increased on a sharp surge in holdings through securities and comparable instrumentsFunds parked by Indian individuals and
companies in Swiss banks, consisting of through India-based branches and other banks, leapt to 2.55 billion Swiss francs (over Rs 20,700
crore) in 2020 on a sharp rise in holdings by means of securities and similar instruments, though consumer deposits fell, yearly data from
Switzerland's central bank showed on Thursday.The boost 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 greatest level in 13 years.It stood
at a record high of nearly 6.5 billion Swiss francs in 2006, after which it has been mainly on a downward path, other than for a couple of
years consisting of in 2011, 2013 and 2017, as per the Swiss National Bank (SNB) data.The overall quantity of CHF 2,554.7 million (Rs 20,706
crore), explained by the SNB as total liabilities of Swiss banks or quantities due to their Indian clients at the end of 2020, consisted
of CHF 503.9 million (over Rs 4,000 crore) in client deposits, CHF 383 million (over Rs 3,100 crore) held through other banks, CHF 2 million
(Rs 16.5 crore) through fiduciaries or trusts and the greatest part of CHF 1,664.8 million (almost Rs 13,500 crore) as other quantities due
to customers in type of bonds, securities and various other monetary instruments.While the funds classified as client account deposits
have really declined from CHF 550 million at the end of 2019 and those through fiduciaries likewise 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 actually been a surge in
other amounts due to consumers from India, which rose over 6 times from CHF 253 million at 2019-end
All four components had decreased throughout 2019
These are official figures reported by banks to the SNB and do not indicate the quantum of the much-debated supposed black money held by
These figures also do not consist of the money that Indians, NRIs or others might have in Swiss banks in names of third-country
entities.According to the SNB, its information for overall liabilities of Swiss banks towards Indian clients considers all kinds of funds
of Indian clients at Swiss banks, including deposits from people, banks and business
This includes information for branches of Swiss banks in India, as likewise non-deposit liabilities.On the other hand, the locational
banking data of the Bank for International Settlement (BIS), which have been explained in the past by Indian and Swiss authorities as a
more trusted measure for deposits by Indian people in Swiss banks, show a boost of nearly 39 percent during 2020 in such funds to $ 125.9
This figure takes into account deposits in addition to loans of Indian non-bank customers of Swiss-domiciled banks and had revealed an
increase of 7 percent 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 Rs 9,000 crore) at the end of 2007
Swiss authorities have constantly preserved that assets held by Indian homeowners in Switzerland can not be considered as black cash and
they actively support India in its battle against tax fraud and evasion
An automated exchange of information in tax matters in between Switzerland and India has actually been in force given that 2018
Under this structure, detailed monetary info on all Indian citizens having accounts with Swiss financial institutions given that 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 believed to have actually delighted in financial misbehaviors after
submission of prima facie proof
Such exchange of details has taken place in hundreds of cases so far.Overall, consumer deposits in all Swiss banks increased in 2020 to
almost CHF 2 trillion, which included over CHF 600 billion of foreign client deposits
While the UK topped the charts for foreign customers' money in Swiss banks at CHF 377 billion, it was followed by the US (CHF 152 billion)
at the 2nd spot-- the just 2 nations 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 positioned
at 51st location, ahead of countries like New Zealand, Norway, Sweden, Denmark, Hungary, Mauritius, Pakistan, Bangladesh and Sri Lanka
Among BRICS nations, India stood listed below China and Russia, but above South Africa and Brazil.Others placed above India consisted of
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 quantities due to customers consisted of the US and UK, while the cash parked by people and business from
Bangladesh likewise decreased during 2020
Nevertheless, the quantity nearly doubled in the case of Pakistan to over CHF 642 million.Just like India, the issue of alleged black cash
in Swiss banks has actually been a political hot potato in the 2 neighbouring nations also
As per the SNB, there were 243 banks in Switzerland at the end of 2020
