Indians' Funds In Swiss Banks Rise To Rs 20,706 Crore: Report

Funds put aside by Indians in the Swiss banks rose to over ₹20,706 crore in 2020, according to the annual data released by Switzerland's central bank on Thursday, June 17.

The funds include money parked from Indian individuals as well as firms and other financial institutions through securities and other financial instruments, according to The Times of India.

The publication reported that the customers' deposits have, however, declined.

An increase in holdings has been reported after witnessing a declining trend for two years and has reportedly taken the figure to a record high of 13 years. In 2019, the increase in aggregate funds with Swiss banks stood at ₹6,625 crore.

Details Of The Funds

The report by the Swiss National Bank (SNB) described the ₹20706 crore figure as the 'total liabilities' or 'amount due' to their Indian clients at the end of 2020.

It comprised of ₹4000 crore in customer deposits, ₹3100 crore as amount held via other banks, ₹16.5 crore through trusts, and ₹13,500 crore through bonds, securities, and other instruments.

In 2019, both customer deposits and funds through trusts and fiduciaries saw a decline, the surge in total deposits was a result of a massive jump in money held via other banks.

According to the bank, the total liabilities towards Indian clients refer to all types of funds of such customers including deposits from individuals, banks, and enterprises. It includes data for branches of Swiss bank in India as well as non-deposit liabilities.

Rise In Deposits Does Not Imply Rise In Black Money

The figures released do not indicate the black money held by Indians in Switzerland. The data does not show the funds Indians and NRIs might have in Swiss banks in the name of third-country entities.

Swiss authorities have maintained that they support India in its fight against black money through tax evasion and financial frauds and have asserted that the assets held by Indians in Switzerland cannot be considered black money.

Detailed information exchange pertaining to tax matters has been taking place between Swiss and Indian authorities since 2018, where the details of all Indian residents holding financial accounts with Swiss intuitions have to be shared every year. India received the information of all account holders for the first time in September 2019.

India Ranks 51st In Total Deposits

According to SNB's report, the UK holds the highest amount in Swiss banks. It was followed by the United States —the only two countries with 100-billion-plus client funds.

India was at 51st place behind countries like France, Hong Kong, Germany, and China but ahead of Pakistan and Sri Lanka.

A total of 243 banks are functional in Switzerland at the end of 2020

Also Read: Amid Pandemic, India's Direct Tax Collection Doubles To Rs 1.85 Lakh Crore In FY 2021-22