Funds parked by Indian individuals and firms in Swiss banks, including through India-based branches and other financial institutions, jumped to a 14-year-high of 3.83 billion Swiss francs (over ₹ 30,500 crores) in 2021 on a sharp surge in holdings via securities and similar instruments while customer deposits rose as well, annual data from Switzerland’s central bank showed on Thursday.
The rise in aggregate funds of Indian clients with Swiss banks, from 2.55 billion Swiss francs (Rs 20,700 crore) at the end of 2020, marks the second consecutive year of increase.
Besides, the money held in Indian customers’ savings or deposit accounts rose to a seven-year high of about ₹ 4,800 crores, reversing a two-year declining trend.
In 2007, the figure stood at 2.92 billion Swiss francs. The money parked in Swiss banks has always been linked to black money being parked outside India.
After a series of anti-black money measures – including an amnesty scheme in 2015 to declare undeclared foreign assets – the Narendra Modi government had claimed that it has managed to tame the menace of black money parked abroad.
Even data buttressed the government claims as Indian funds parked in Swiss banks halved from 1.2 billion Swiss francs in 2015 to 665 million Swiss francs in 2016. In 2019, Indian funds in Swiss banks stood at 892 million Swiss francs. However, since then the trend has reversed.
In 2020, funds in Swiss banks nearly trebled to 2.5 billion Swiss francs. Last year, the government came up with a clarification saying the customer deposits have fallen from the end of 2019.
However, this year the government may not have the same excuse as data shows that customer deposits have risen from 503 million Swiss francs in 2020 to 602 million Swiss francs in 2021. Other amounts due to customers have also risen from 1.6 billion Swiss francs to 2 billion Swiss francs.
The total amount of CHF 3,831.91 million, described by the SNB as ‘total liabilities of Swiss banks or ‘amounts due to their Indian clients at the end of 2021, included CHF 602.03 million in customer deposits (up from CHF 504 million at 2020-end), CHF 1,225 million held via other banks (up from CHF 383 million), and CHF 3 million through fiduciaries or trusts (up from CHF 2 million).
India Rank
India was placed in 44th place, ahead of countries like Poland, South Korea, Sweden, Bahrain, Oman, New Zealand, Norway, Mauritius, Bangladesh, Pakistan, Hungary, and Finland.
Among BRICS nations, India stood below Russia (15th place) and China (24th), but above South Africa and Brazil.
Pakistan saw an increase in funds for its citizens and enterprises to CHF 712 million, while that for Bangladesh rose to CHF 872 million.
Just like in India, the issue of alleged black money in Swiss banks has been a political hot potato in the two neighboring countries as well.
