Funds parked by Indians in Swiss banks rose by over 50% in 2017: Report
This increase reverses a downward trend in such holdings that had begun in 2014.
Money parked by Indians in Swiss banks rose by more than 50% to CHF 1.01 billion (Rs 6,974 crore) in 2017, the Swiss National Bank’s annual report showed on Thursday. Compared to the rise in money held by Indian clients, the total funds parked by all clients around the world rose just 3%, PTI reported.
This increase has reversed a downward trend in such holdings that had begun in 2014. It has come despite a government campaign to eliminate black money. In 2016, Indian money in Swiss banks declined by 45% to CHF 676 million (around Rs 4,670 crore), the biggest-ever plunge in a year.
The Swiss National Bank said the total funds parked by Indians directly with the country’s banks rose to CHF 999 million (Rs 6,901 crore) in 2017 from CHF 665 million (Rs 4,590 crore) in 2016. The funds held through fiduciaries or wealth managers increased to CHF 16.2 million (Rs 112 crore) in 2017 from CHF 11 million (Rs 76 crore) in 2016.
Indian-held funds with Swiss banks were at an all time high in 2006 at CHF 6.5 billion (Rs 44,900 crore), but declined to almost one-tenth of that level in a decade, PTI reported. The 2017 increase in this figure is only the third time it has gone up since 2006.
In December, India and Switzerland signed a deal that would allow the two countries to automatically share tax-related information from January 1. The two countries had signed a joint declaration on the implementation of Automatic Exchange of Information in November that mandates Switzerland to conform to the global standards on automatic exchange of information. However, such an exchange will begin only in September 2019.