Record fall in Indians’ money in Swiss banks
A significant decline was registered in the level of Indians’ money stashed in Swiss banks as it reached to a record low level of about Rs 9,000 crore (1.42 billion Swiss francs), as global pressure against the famed secrecy of Switzerland banking system made it unattractive for their global clients. As per official data released by Swiss National Bank (SNB):
- Total funds held by Indian individuals and entities included 1.34 billion Swiss francs held directly by Indian individuals and entities, and another 77 million Swiss francs through ‘fiduciaries’ or wealth managers at the end of 2012.
- Indians’ money fell by about 35% or Rs 4,900 crore in 2012.
- 9.1% fall in the funds held by entities from across the world in Swiss banks, which also hit an all-time low of 1.4 trillion Swiss francs (USD 1.5 trillion) at the end of 2012.
- At the beginning of 2012, Indians’ money was Rs 14,000 crore (2.18 billion Swiss francs), the equivalent figure for entities from across the world stood at 1.5 trillion Swiss francs (USD 1.65 trillion).
- The figures are ‘liabilities’ of Swiss banks towards their clients from India, it doesn’t indicate towards the quantum of the much-debated alleged black money stashed there.
- Figures do not include the money that Indians or others might have in Swiss banks in the names of others.
- The quantum of funds held by Indians in Swiss banks was at 6.5 billion Swiss francs (over Rs 41,000 crore) at the end of 2006, but has decreased by over five billion Swiss francs (over Rs 32,000 crore) since then.
Where is this money going?
Switzerland is facing growing pressure from the US and other countries to share the foreign client details, while its own lawmakers are resisting such measures. As per experts, there has been a “perceptible flight of funds” of Indian holders from Swiss banks to other places in the recent years. It is feared that the money might be routed back to India, either into the stock market through FIIs or even via the FDI route.