Indian money in Swiss banks falls 5.8%

The Money parked by Indians in Swiss Banks fell for the second straight year, this time by CHF 55 million, or 5.8 per cent, to CHF 899 million (Rs 7,100 crore)  in 2019.

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Key-Points

While overall total foreign deposits rose by 3.1 per cent to CHF 1.44 trillion from CHF 1.39 trillion in 2018, China saw a major 13.1 per cent jump in money parked by its residents, from CHF 13.5 billion in 2018 to CHF 15.3 billion.

India’s neighbour Pakistan witnessed a sharp decline in the money parked by its residents in Switzerland last year as it declined by 45 per cent from CHF 745 million in 2018 to CHF 410 million.

Even as some nations witnessed a jump in 2019, there has been an overall decline in money parked by residents across countries in Swiss banks since the year of the global financial crisis.

While overall foreign deposits have fallen 41 per cent since 2007 that for India has declined by 79 per cent since 2007. For India, the total liabilities of Swiss banks stood highest in 2006 at CHF 6.46 billion.

It has come down in line with the Centre’s steps over the last few years to curb black money in the economy and following the setting up of new framework in 2016 that allowed exchange of information between Switzerland and India to help check the black money menace.

The SNB data comes after the first set of details of bank accounts held by Indian nationals were shared under the new framework for Automatic Exchange of Information (AEOI) between Switzerland and India to help check the black money menace last September.