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India

Govt Refutes Report of Indian Funds Reaching Record High in Swiss Banks

However, the ministry said that the figure was misrepresented and the government had reached out to the Swiss authorities to confirm the details of the report.

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The rise in aggregate funds of Indian clients with Swiss banks, from 2.55 billion Swiss francs (Rs 20,700 crore) at the end of 2020, marks the second consecutive year of increase. (PTI Photo)

New Delhi: The Union Finance Ministry on Saturday (June 19) rejected the report which stated that money coming from India had increased in the Swiss Bank to  20,700 crore at the end of 2020 from Rs 6,625 crore at the end of 2019. The report also claimed that this was the highest ever deposited amount in the bank account for the past 13 years. However, the ministry said that the figure was misrepresented and the government had reached out to the Swiss authorities to confirm the details of the report.

“Media reports allude to the fact that the figures reported are official figures reported by banks to Swiss National Bank (SNB) and 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,” it said in a statement.

The Centre also pointed out that India and Switzerland were signatories to the  Multilateral Convention on Mutual Administrative Assistance in Tax Matters (MAAC) and the Multilateral Competent Authority Agreement (MCAA) under which the countries can annually share financial account information through the Automatic Exchange of Information (AEOI).

The government also explained the reasons that the deposits could have increased in the Swiss Banks which are:

  • Increase in the deposits held by Indian companies in Switzerland owing to increased business transactions.
  • Increase in deposits owing to the business of Swiss Bank branches located in India.
  • Increase in Inter- bank transactions between Swiss and Indian BanksA capital increase for a subsidiary of a Swiss Company in India.
  • Increase in the liabilities connected with the outstanding derivative financial instruments.

The report in question had also said that though the funds classified as ‘customer account deposits’ had declined other indicators such as funds transferred through other banks and funds transferred through bonds, securities, and various other financial instruments.

With inputs from PTI