There has been a sharp surge in holdings via securities & similar instruments on the funds of Indian individual and firms in Swiss Bank, a jump to 2.5 billion Swiss Francs which is more than ₹20,700 crores in 2020, this includes funds through India based branches and other financial institutions, as per annual data revealed from Switzerland’s Central Bank showed on Thursday 17th June.
However, there was a sharp fall in customer deposits as per data released agency reported. This figure is the highest observed in 13 years, reversing a 2-year declining trend. At the end of 2019, the aggregate funds of Indian clients with Swiss banks was ₹6,625 crore, the report stated.
These deposits stood at a record of 6.5 billion Swiss Francs (over ₹52,500 crores) in 2006, following which it has mostly charted a downward trend, except for a few years in 2011, 2013 & 2017 as per SNB data.
A sharp surge in ‘Other Amounts Due to Customers’ includes over ₹4,000 crores (CHF 503.9 million) in customer deposits, over ₹3,100 crores (CHF 383 million) via other banks, ₹16.5 crores (CHF 2 million) through fiduciaries and trusts. Nearly ₹13,500 crores (CHF 1,164.8 million) in other amounts due to customers as bonds, securities, and other financial instruments.
The data shows that money held via other banks has seen a sharp rise from CHF 88 million at the end of 2019. On the other hand, customer’s account deposits have fallen from CHF 550 million at the end of 2019, & fiduciaries have more than halved from CHF 74 million as reported.
However, the biggest difference has been a surge in other amounts due to customers from India which rose over 6 times from CHF 253 million at the 2019 end.
Data on alleged black money held by Indians
These are the official figures reported by SNB and do not indicate the quantum of 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 the names of third-country entities.
Swiss Authorities have always maintained that assets held by the Indian Residents in Switzerland cannot be considered as ‘Black money’ & they actively support India in its fight against tax fraud and evasion.
Where India stands among other Nations overall
Overall, customer deposits in all the Swiss Bank rule in 2020 nearly CHF 2 trillion, which included over CHF 600 billion of foreign customer deposits.
While the UK topping the charts for foreign clients funds at CHF 377 billion, it was followed by the US CHF 152 billion at the second spot the only 2 countries with 100 billion-plus clients funds.
India stood at 51st on this list, below China and Russia but above South Africa and Brazil among the BRICS Nations, and they are also placed ahead of countries like New Zealand, Norway, Sweden, Hungary, Denmark, Mauritius, Pakistan, Bangladesh, and Sri Lanka as reported.
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