New Delhi: Dismissing reports which claimed that funds of Indians in Swiss Banks have risen to over Rs 20,700 crore in 2020, the Finance Ministry on Saturday asserted it has sought details from the authorities of Switzerland on the relevant facts along with their view on possible reasons for changes in the funds. “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 said in a statement today.
It 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.
Furthermore, it 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 said.
Quoting data from Switzerland’s central bank, news agency PTI has reported on June 17 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 Rs 20,700 crore) in 2020 on a sharp surge in holdings via securities and similar instruments, though customer deposits fell.
(With PTI Inputs)
Get real time update about this post directly on your device, subscribe now.