The finance ministry asserted that Indian customer deposits in Swiss banks have fallen since 2019, but said it is seeking details from Swiss authorities on the relevant facts along with their view on possible reasons for changes in the funds parked by individuals and entities in 2020. In a statement, the ministry said the deposits have halved but did not give numbers.
Quoting data from Switzerland’s central bank, a report said that funds parked by Indian individuals and firms in Swiss banks, including through India-based branches and other financial institutions, jumped to a 13-year high of 2.55 billion Swiss francs (over £2.07 billion) in 2020 on a sharp surge in holdings via securities and similar instruments, though customer deposits fell.
In its statement, the ministry said the figures “do not indicate the quantum of much debated alleged black money held by Indians in Switzerland. Further, these statistics do not include the money that Indians, NRIs or others might have in Swiss banks in the names of third-country entities.”
The ministry noted that customer deposits have actually fallen from the end of 2019. The funds held through fiduciaries have also more than halved from 2019-end. “The biggest increase is in ‘Other amounts due from customers’. These are in form of bonds, securities and various other financial instruments,” the ministry added.
It also listed out the reasons that could have led to the increase in deposits, including rising business transactions by Indian companies, rise in deposits owing to the business of Swiss bank branches located in India and increase in inter-bank transactions between Swiss and Indian banks.
Besides, capital increase for a subsidiary of a Swiss company in India and increase in the liabilities connected with the outstanding derivative financial instruments could be the other potential reasons for this jump in deposits, the ministry explained. “The Swiss Authorities have been requested to provide the relevant facts along with their view on possible reasons for increase/decrease….,” the ministry added.
