Indian deposits in Swiss banks, which are considered to be blackouts of black money, are far less compared to other global financial centers like Singapore and Hong Kong. A group of Switzerland’s private bankers said this in the midst of increasing attempts to curb black money.
According to the latest official figures, by the end of 2015 Indians’ deposits in Swiss banks have dropped to 1.2 billion francs (about Rs 8,392 crore), which is the lowest level of records. By the way, there is no formal data available for deposits in other global centers. Last week, Switzerland has approved the arrangement for direct exchange of financial account information with India and 40 other countries. The Swiss Federal Council stamped the proposal for the approval of the Global Treaty on Self-Exchange of Tax Information (AOI). For the direct exchange of information under the system, the rules of data privacy must be strictly adhered to.
The Geneva-based Association of Swiss Private Banks (AOPB) has said that India does not have to worry about it in this regard. The law is being followed in the proper manner in the country. Association’s manager Jain Langlo said that even some citizens of India have money in Swiss banks, which is much lower than Hong Kong and Singapore. At present, nine banks are members of this group. There is a total of 7500 employees in these banks.
According to Swiss National Bank statistics, deposits of Indians in Switzerland’s banks were reduced by 59.64 million Swiss francs to 1.2 billion Swiss francs at the end of 2015. Indians in Swiss banks had a 6.5 billion francs (Rs 23,000 crore) deposit at the end of 2006, which was a record high level. However, since then only these funds are declining. In 2011 and 2013, the amount of Indians rose 12 percent and 42 percent, respectively.
Consciousness should be kept: Association of Swiss Private Banks has said that India will have to ensure strictly the confidentiality of information received by Swiss citizens about Swiss bank accounts under the new arrangement. If this does not happen, Switzerland will stop sharing statistics. The Association has clarified that the Swiss government and its bank, India will keep an eye on the measures taken for data protection in the context of the details obtained from different countries.