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- The Swiss authorities said on June 18 that Indian citizens’ deposits in their country’s banks have nearly tripled in a year.
- According to the data released on Friday, the deposits of Indians in Swiss banks stood at Rs 20,700 crore at the end of 2020, from Rs 6,625 crore at the end of 2019.
The spurt in ‘black money’ of Indian citizens stashed in Swiss banks is false, the Finance Ministry has claimed. Swiss authorities said on June 18 that Indian citizens’ deposits in their country’s banks have nearly tripled in a year.
Deposit amount increased almost three times during Kovid
According to the data released by the Swiss government on Friday, Indian citizens had deposits of Rs 20,700 crore in Swiss banks at the end of 2020. According to the claims of the Swiss authorities, a total of Rs 6,625 crore was deposited by Indian citizens there at the end of 2019. That is, during Kovid this amount increased almost three times.
Deposit level highest in last 13 years
According to the figures released by the Swiss authorities, till 2019, the trend of two years of decline in the deposits of Indian citizens has reversed. It is to be noted here that the level of such deposits till the end of 2020 is the highest in the last 13 years.
There is no information about black money of Indian citizens in the report
The Finance Ministry says that the media reports only mention those figures, which have been given by the banks to the Swiss National Bank (SNB). There is no indication from them as to how much black money Indian citizens are hiding in Swiss banks.
No mention of deposits made through institutions operating in third countries
The Indian government also says that the figures released by the Swiss authorities do not include the amount deposited by Indian citizens, overseas Indians or other people in Swiss banks through institutions operating in any third country.
Deposits of Indian customers have come down to 2019 levels: Ministry
According to the Finance Ministry, in fact deposits of Indian customers have come down from the level of 2019. The amount deposited through trusts has also come down to less than half what it was then. The biggest increase in deposits of Indian citizens in Swiss banks has been in ‘Other Money’. This amount is in the form of bonds, securities and other financial instruments.
agreement to assist each other in tax matters
The government has said that the two countries have signed an agreement to assist each other in tax matters. An agreement between them is such that both the countries have to inform each other about the financial accounts of their citizens every year from 2018. This system has been effective in preventing tax evasion through undeclared assets abroad.
Both countries shared financial account information in 2020
The Finance Ministry says that both the countries have informed each other about the financial accounts of their citizens in 2020 under these agreements. Therefore, there is no possibility of a sharp jump in the amount deposited in Swiss banks from the undisclosed income of Indian citizens.
Possible reasons for the surge in deposits of Indian citizens in Swiss banks
The government has given some possible reasons for the jump in deposits of Indian citizens in Swiss banks, which are:
Indian companies’ deposits may have increased due to business transactions
– Deposits would have increased due to the business of Indian branches of Swiss banks
There would have been an increase in interbank transactions between the banks of Switzerland and India
The capital of a subsidiary of a Swiss company in India must have increased
To know what could be the reason for the increase/decrease in deposits of Indian citizens, the Government of India has sought information from the Swiss authorities.