Indian deposits in Swiss banks hit 13-year-high

FUNDS deposited by Indian nationals and firms in Swiss banks hit a 13-year-high of about 2.6 billion Swiss francs ($2.82bn) in 2020, up from 899 million Swiss francs $976m) a year ago, according to annual data released by the Swiss National Bank (SNB) on Thursday (17).

This also includes deposits by India-based branches and other financial institutions.

The steep rise in 2020 deposits is because of a surge in holdings via securities and similar instruments, though customer deposits fell, SNB data showed.

The last record high was touched in 2006, when deposits by Indian nationals and firms totaled 6.5bn Swiss francs ($7.06bn); in later years, there was a downward trend of deposits.

According to reports, Indian authorities have contacted Switzerland to express their concern in the wake of the new report. From Pakistan too, deposits surged 77.8 per cent in 2020 to 640m Swiss francs ($695m).

Meanwhile, the money deposited by Bangladesh clients in Swiss banks plunged 6.6 per cent to 563m Swiss francs ($612m) in 2020, marking a third consecutive yearly fall.

Of the total sum, 530m Swiss francs ($576m) belong to different banks and the rest to Bangladeshi nationals, the SNB data showed.

The data does not specify who the amount belongs to.

A high level of confidentiality protections in the banking laws makes Switzerland the preferred destination for the wealthy from all over the world to park their funds.

The only exception for information sharing is if a government agency claims that a depositor is involved in a serious criminal act or in some other financial issue.