Indian money in Swiss banks dips to record low at Rs 9,000 crore

Zurich/New Delhi: Indian money deposited in Swiss banks has fallen to a record low of about Rs 9,000 crore (1.42 billion Swiss francs), as a global clampdown against the famed secrecy wall of Switzerland banking system has made it difficult for their global clients.

The 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, as per the latest figures released by the Swiss National Bank (SNB) in Zurich today.

The official data, which forms part of SNB's annual report on Swiss banks, further showed that money deposited by Indians there fell by about 35 per cent or Rs 4,900 crore in 2012.

This was much steeper than the 9.1 per cent 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 ($1.5 trillion) at the end of 2012.

While the Swiss banks had close to Rs 14,000 crore (2.18 billion Swiss francs) of Indian money at the beginning of 2012, the equivalent figure for entities from across the world stood at 1.5 trillion Swiss francs ($1.65 trillion).

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The funds, described by SNB as 'liabilities' of Swiss banks towards their clients from India, are the official figures disclosed by the Swiss authorities and do not indicate towards the quantum of the much-debated alleged black money held by Indians in the safe havens of Switzerland.

SNB's official figures do not include the money that Indians or others might have in Swiss banks in the names of others.

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The quantum of funds held by Indians in Swiss banks stood at a record high level of 6.5 billion Swiss francs (over Rs 41,000 crore) at the end of 2006, but has declined by over five billion Swiss francs (over Rs 32,000 crore) since then.

For clients across the world, total funds in Swiss banks stood at a record high of $2.6 trillion at the end of 2007, but have fallen by over $1 trillion since then.

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While a new treaty has been put in place for sharing of information on issues related to tax crimes on a prospective basis, Switzerland has also agreed to a limited retrospective clause for such information exchange in case of India.

The Swiss banks' direct liabilities towards clients from India include funds held in savings and deposit accounts by Indian individuals, financial institutions and corporates.

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