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. 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.
Three cows were tied up at the entrance to the Bombay Stock Exchange on Sunday morning, as delegates attended a ‘National Conference on Indian Cow’ on the building’s first floor.
At the centre of the discussions, organised by Virat Hindustan Sangam, were the cattle and the need to protect them from the slaughter industry. Bharatiya Janata Party (BJP) legislator, Subramanian Swamy, who was present at the meeting, said there was nothing in the legislation than can stop a ban on beef eating in India. “A national law banning cow slaughter can be enacted, and every state will have to obey,” he said.
On March 25, Swamy had introduced a Private Members’ Bill in the Rajya Sabha that seeks death penalty for those who slaughter cows. “Cows are considered purifiers in our tradition and are a fundamental part of our culture. People who live in India must accommodate its tradition in their life,” Swamy said at the talk, which was attended by over 200 people.
Swamy said that gaurakshaks are doing a great service, and soon they shall have national cadre called ‘Gaurakshaks of Hindustan’, amidst reports of rising cattle vigilantism across states. He dismissed concerns around the government’s recent ban on sale of cattle for slaughter, which is likely to affect millions of farmers and the export industry.
“Instead of slaughtering, we can make money by exporting cow milk. The money made by the famer by doing this, can be saved in a fixed deposit and used later to build a gaushala for old cattle which no longer yield milk,” said Swamy.
SUBRAMANIAN SWAMY SAID GAU RAKSHAKS WERE DOING A GREAT SERVICE, AND THEY SHALL HAVE A NATIONAL CADRE, ‘GAU RAKSHAKS OF HINDUSTAN’, SOON