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Indian funds in Swiss banks hit record low of 676 mn francs

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As per latest data published by Swiss National Bank (SNB), money parked by Indians in Switzerland’s banks nearly halved to 676 Million Swiss francs (CHF) in 2016. As per current exchange rate, the approximate amount stands at Rs. 4500 crore.

More Details about Indian Funds in Swiss Bank:

Indian funds in Swiss Banks dropped by nearly 45% in 2016 as compared to 2015, marking the biggest ever yearly decline in such funds.

  • Persistent efforts by Indian Government to clampdown on suspected black money is believed to be the primary reason behind this drop.
  • The total funds held by Indians directly with Swiss banks stood at CHF 664.8 million at the end of 2016, while the same held through fiduciaries (trusts and other beneficiaries) was nearly CHF 11 million.
  • Out of CHF 664.8 million, CHF 377 million is in form of customer deposits, about CHF 98 , Switzerland ratified an automatic exchange of financial account information with Indiamillion owed to Indians through other banks and CHF 190 million in form of other ‘liabilities’.
  • This is the lowest amount of funds held by Indians in the Swiss banks ever since the Switzerland began making the data public in 1987. This figure also marks the third straight year of decline.
  • The funds held through fiduciaries or wealth managers alone used to be in billions till 2007 but have been falling amid fears of regulatory crackdown.
  • However, it is to be noted that total funds held by all foreign clients of Swiss banks rose to CHF 1.42 trillion or about Rs 96 lakh crore (from CHF 1.41 trillion a year ago).

Quick Facts about Swiss National Bank:

Swiss National Bank(SNB) is the central bank of Switzerland, responsible for Switzerland’s monetary policy  and also for the issuing of Swiss Franc currency notes.

  • It was established in year 1906.
  • SNB has two headquarters – one in Bern and other in Zurich.
  • Thomas Jordan is the current Chairman of SNB.