Modi Govt.’s crackdown on black money.
By Sreekanth A. Nair
As the Modi government is strengthening the rules against black money, the latest data released by Switzerland central banking authority Swiss National Bank (SNB) show that the money owned by Indians in Swiss banks has fallen to two thirds to 1.2 billion francs (CHF) or about Rs 8,392 crore.
According to a Press Trust of India report, the money held by Indians in the banks of Switzerland has reduced by CHF 596.42 million to CHF 1,217.6 million at the end of 2015.
According to reports, this is the lowest amount held by Indians in Swiss banks. The year 2006 marked the highest amount held by Indians ever in Swiss banks when it stood at CHF 6.5 billion (Rs 23,000 crore).
The amount belongs to Indians in Swiss banks have been showing a declining trend except in 2011 and 2013. In those two years, the deposits showed a rise of 12 and 42 percent, respectively.
The direct deposits held by Indians stood at CHF 1,206.71 million at the end of 2015, while the money kept through ‘fiduciaries’ or wealth managers was at CHF 10.89 million. These figures were CHF 1,776 million and CHF 37.92 million respectively at the end of 2014. The total amount was CHF 1,814 in 2014.
Meanwhile, the money held through other banks almost doubled over a period of one year from CHF 100.6 million to CHF 270.4 million. The funds held through securities also increased from CHF 297 million in 2014 to CHF 510.4 million.
The data was released at a time when the government of India is taking strict measures to crack down on black money which was one of the important promises of the BJP in the election manifesto of the 2014 parliament elections.
Switzerland has assured India all help to unearth the black money deposited by Indians in Swiss banks.
“Combating the menace of black money and tax evasion is also our shared priority. “We discussed the need for an early and expeditious exchange of information to bring to justice the tax offenders,” Swiss President Johann Schneider-Amman had said earlier.
Both the countries are looking forward to signing an agreement to exchange information regarding black money accounts by 2018.