Indian deposits in Swiss banks fall to record low
TREND Pvt bankers body says holdings have fallen to ₹8,392 crore
THE FUNDS HELD BY INDIANS WITH SWISS BANKS STOOD AT A RECORD HIGH OF CHF 6.5 BILLION ( ₹23,000 CRORE) AT 2006END
Indians have “few deposits” in Swiss banks compared to other global financial hubs like Singapore and Hong Kong, says a grouping of private bankers in Switzerland amid stepped-up efforts to check the black money menace.
Money held by Indians in Swiss banks declined to a record low of 1.2 billion franc (about ₹8,392 crore) at the end of 2015, as per the latest available official data. However, no official data is available for money in other global hubs.
Committing itself to the global framework for automatic exchange of tax information, Switzerland last week ratified the decision to implement this regime with India and 40 other jurisdictions.
The framework for automatic exchange of information requires strict adherence to data confidentiality, but the Genevabased Association of Swiss Private Banks said it has no particular concern over India, where the rule of law seems to be properly upheld.
“There are also rather few deposits of Indian residents in Switzerland, as opposed to SingSwiss apore or Hong Kong for instance,” the association’s manager Jan Langlo said from Geneva.
When asked about trends in terms of deposits from Indian residents, Langlo said it has not noticed any particular trend.
“It is simply more practical for them to open an account in an Asian financial centre than in Switzerland,” Langlo noted.
Currently, the association has nine member banks employing around 7,500 people across the globe, as per its website. The grouping represents the business interests of privatelyowned Swiss banks that specialise in wealth management.
According to data from the Swiss National Bank, the funds held by Indians with banks in Switzerland fell by CHF 596.42 million to CHF 1,217.6 million at the end of 2015.
It was the lowest amount of funds held by Indians in the banks ever since the Alpine nation began making the data public in 1997 and marked the second straight year of decline.
The funds held by Indians with Swiss banks stood at a record high of CHF 6.5 billion (Rs 23,000 crore) at 2006-end.
However, the quantum of these funds has been falling since then, except for in 2011 and in 2013 when Indians’ money had risen by over 12% and 42 %, respectively.
‘SECRECY A MUST FOR AUTOMATIC EXCHANGE’
India will have to ensure strict confidentiality of information about its citizens’ Swiss bank accounts received through the new automatic exchange window, failing which the Alpine nation will stop sharing the data.
Switzerland and its banks will also keep a close watch on the data protection measures taken by India regarding the details received from other jurisdictions.
On Friday, the Swiss Federal Council ratified the automatic exchange of information (AEOI) with India and 40 other jurisdictions to facilitate immediate sharing of details about suspected black money.