According to ‘Annual Bank Statistics of 2020’ released by Swiss National Bank (SNB), the Central of Bank of Switzerland – India with Swiss Francs (CHF) 2.55 billion ( ~ INR 20, 706 Crore) has been placed at 51st place in the list of foreign clients’ money in Swiss Banks during 2020. The United Kingdom (UK) topped the list with CHF 377 billion, followed by US (152 billion).
- The CHF 2.55 Billion (includes deposits made by Indian individuals, firms, deposits made in India-based branches of Swiss Banks and other financial institutions) has increased from 899 million CHF (INR 6, 625 Crore) in 2019.
- This reverses a two-year declining trend, and takes the aggregate fund to the highest level since 2006 (6.5 Billion CHF).
- The increase in aggregate funds of Indian clients in 2020 is due to increase in holdings via securities and similar instruments.
- In the ‘Annual banking statistics, 2019’ India was placed at the 77th position.
Fact – The data is based on official figures reported by the bank to SNB; they do not indicate the amount of black money held by Indians in Switzerland.
i.The total amount of CHF 2.554.7 million (~ INR 20, 706 crore) by Indian clients includes
- CHF 503.9 million (~ INR 4, 000 crore) in customer deposits; CHF 383 million (~ INR 3, 100 crore) held via other banks; CHF 2 million (INR 16.5 crore) through trusts/Fiduciaries (a person/organization that acts on behalf of others); The highest component of CHF 1, 664.8 million (INR 13, 500 crore) is in the forms of bonds, securities and other financial instruments.
- All the 4 components had registered declines in 2019.
- Funds classified as ‘customer account deposits’ have declined from CHF 550 million at the end of 2019, those through fiduciaries has been halved from CHF 7.4 million, the money held through other banks increased from CHF 88 million in 2019.
ii.The overall customer deposits in all Swiss banks increased to nearly CHF 2 trillion in 2020.
iii.Based on the aggregate funds, among BRICS Nations, India was ranked below China & Russia, but above South Africa & Brazil.
‘Locational Banking Statistics’ of BIS
The ‘Locational Banking Statistics’ of the Bank for International Settlement (BIS), a reliable measure for deposits by Indian individuals in Swiss banks indicated an increase of 39% in aggregate funds of Indians during 2020 – USD 125.9 million (INR 932 Crore).
Steps taken by India to curb Black Money
- Since 2018 an automatic exchange of information in tax matters has been in force between Switzerland and India.
- The framework provides financial information on all Indian residents having accounts in Switzerland since 2018, the information was provided for the 1st to India in September 2019 and will be followed each year.
About Swiss National Bank (SNB)
Chairman of the Governing Board – Thomas J. Jordan
Head Offices – Berne, Zurich