Indian money in Swiss banks rise for 1st time in 5 years

June 14, 2012

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New Delhi, Jun 14: Switzerland today said the quantum of money held by Indians in Swiss banks stood at 2.18 billion Swiss francs (about Rs 12,740 crore) at the end of 2011 -- rising for the first time in the past five years.

The total funds held by Indian individuals and entities include 2.025 billion Swiss francs held directly by them and 158 million held through 'fiduciaries' or wealth managers, shows the latest data disclosed by the Swiss National Bank (SNB) in its annual handbook on Swiss banks published today.

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.

Also, SNB's official figures do not include the money that Indians or other nationals might have in Swiss banks in the names of others. While there is no official estimate for such unaccounted funds, but some estimates put it as high as 20-25 billion dollars.

As per the data from SNB, Switzerland's central bank, the quantum of funds held by Indians in Swiss banks had last increased in 2006 by about one billion Swiss francs to 6.5 billion Swiss francs (over Rs 40,000 crore), but fell to less than one-third by the end of 2010. It rose by about Rs 3,500 crore in 2011.

In a White Paper on black money tabled in Parliament last month, the Indian government had also mentioned that the total liabilities of Swiss banks towards Indians have been coming down since 2006 and fell by more than Rs 14,000 crore during the 2006-2010 period.

The liabilities stood at Rs 9,295 crore at the end of 2010, compared to Rs 23,373 crore in 2006.

Amid allegations of Indians stashing huge amounts of illicit wealth abroad, including in Swiss banks, the government says it is making various efforts to bring back the unaccounted money.

The White Paper said that "Switzerland has agreed to share information prospectively only and has accepted limited retrospectively only in case of some countries, such as India."

As per SNB data, funds held by Indians directly in the Swiss banks increased by about 370 million Swiss francs to 2.025 billion Swiss francs (Rs 11,800 crore) in 2011. On the other hand, the funds held through 'fiduciaries' nearly halved to 158 million Swiss francs (about Rs 900 crore) in 2011 -- marking the fifth straight year of decline.

Fiduciaries are essentially wealth fund managers who hold the money of Indian private holders and families in the so-called numbered accounts. The Swiss banks' direct liabilities towards clients from India include funds held in savings and deposit accounts by Indian individuals, financial institutions and corporates.

In terms of liabilities through fiduciary accounts, the UK tops the list with 6.1 billion Swiss francs, followed by Saudi Arabia's 5.95 billion Swiss francs, while Pakistan is also placed higher than India with 355 million Swiss francs.

On the other hand, the size of Swiss banks' assets in India also increased about about two billion Swiss francs to 6.4 billion Swiss francs (over Rs 37,000 crore) in 2011. Their assets have been continuously increasing since 2006 and has more than doubled in this period.

The experts have been saying that there has been a "perceptible flight of funds" of Indian holders from Swiss banks to other places in the recent years. The foreign capital-friendly regulations in places like Mauritius and Dubai were possibly being exploited by those seeking to move their funds away from Swiss banks, which have come under strict scrutiny of late.

At the same time, the global pressure has been rising on Switzerland to ask its banks to share information about their clients with foreign governments. It is being suspected now that Indians having illicit wealth in Swiss banks may be moving their funds in fear of being exposed due to growing scrutiny. At the same time, even those having legitimate funds in Swiss banks may be moving away, due to a growing level of negativity attached to them.

Top financial regulators Sebi and RBI have already stepped up their vigil over Indian entities routing their funds from secretly held Swiss bank accounts to India through other locations.

It is feared that the money might be routed back to India, either into the stock market through FIIs or even via the FDI route.

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News Network
March 26,2020

Mar 26: As Kashmir reported its first COVID-19 death on Thursday, Islamic scholars urged people to follow the Ministry of Home Affairs guidelines on funeral and burial of those who die due to coronavirus pandemic.

“Medical science can’t be ignored and whatever directions there are in the (MHA) guidelines should be followed. As far as the funeral of the person, only family members should participate in the funeral and burial after wearing the protection kits,” the scholars said.

The MHA has stressed that there should be no bathing, kissing, hugging and reciting of verses while the body should be transported in a secured bag. Health experts have stressed that the grave for the person should be dug eight feet deep instead of normal six feet.

“The body of the person should be transported in a secured bag and the vehicle in which he is transported has to be decontaminated by the trained staff who should be wearing N-95 masks and protection equipment,” read the MHA guidelines.

Kashmir witnessed the first death of a COVID-19 patient from uptown city Hyderpora, who had a travel history of outside J&K as he was part of a ‘Tableegi Jamaat’.

Dr Naveed, Head of Department, at Chest Diseases Hospital Srinagar, said that no one from the family should go closer to the body and if someone from the family wants to see the face, he/she has to wear a complete protective gear.

“Burial bath is not recommended for the body. Grave for him should be dug eight feet deep instead of normal six feet,” he said.

As far as funeral prayers, he said, those intending to offer funeral should wear protective gear and maintain sufficient distance between the body and people.

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News Network
March 19,2020

New Delhi, Mar 19: Hit hard by coronavirus, budget carrier IndiGo today announced that it will cut salaries of senior employees. IndiGo CEO Ronojoy Dutta, who will himself take a 25% cut in salary, said senior vice presidents and above are taking a 20% pay cut while vice presidents and cockpit crew are taking a 15% pay cut.

With precipitous drop in revenues, the very survival of airline industry is now at stake, Dutta said while announcing the pay cut. "We have to pay careful attention to our cash flow so that we do not run out of cash," Dutta said adding that he knew how hard it was for families to take a cut in "take-home pay".

"With a great deal of reluctance and a deep sense of regret, we are therefore instituting pay cuts for all employees, excluding Bands A and B, starting April 1, 2020," the chief executive officer said. Band A and B are the lowest brackets in salary class, where most of the employees are.

IndiGo's flight operations chief Ashim Mitra had written an email to pilots this morning saying that the economic environment has deteriorated significantly and no airline is insulated from this severe downturn.

"It has become a necessity to initiate some tough calls and we are working on a string of measures that will be shared and implemented over the next few days and weeks," Mitra said.

With countries sealing their borders partially or fully across the world due to the novel coronavirus pandemic, aviation sector has been hit extremely hard as most airlines globally have drastically curtailed their flight operations.

Another budget airline GoAir has already terminated contracts of expat pilots amid curtailed operations due to the coronavirus pandemic.

Citing "unprecedented" decline in air travel, the budget carrier announced it was suspending international operations and offering leave without pay programme to its staff on a rotational basis.

Government-owned Air India may also cut salary of employees by 5% amid its growing financial woes particularly in the wake of the coronavirus pandemic, which has nearly grounded its entire international operations. The reduction will be across the board, according to a PTI report.

The loss-making airline, which is in the process of a second attempt of privatization after failing to get a single buyer nearly two years ago, has already taken some steps such as reduced flying allowances to cabin crew besides withdrawing entertainment allowance to executive pilots, among others.

“Air India is considering a 5 per cent pay cut to its employees as it faces huge financial crisis due to the ongoing coronavirus outbreak, which has brought almost its entire international operations save the US, Canada and a few other markets, to the ground," a source told news agency.

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News Network
January 22,2020

New Delhi, Jan 22: Defence Minister Rajnath Singh on Wednesday said Indian values consider all religions equal, and that is why the country is secular and never became a theocratic state like Pakistan.

Speaking at the NCC Republic Day Camp in Delhi, Singh said: "We (India) said we would not discriminate among religions. Why did we do that? Our neighbouring country has declared that their state has a religion. They have declared themselves a theocratic state. We didn't declare so."

"Even America is a theocratic country. India is not a theocratic country. Why? Because our saints and seers did not just consider the people living within our borders as part of the family, but called everyone living in the world as one family," the minister said.

Singh underlined that India had never declared its religion would be Hindu, Sikh or Buddhist and people of all religions could live here.

"They gave the slogan of 'Vasudev Kutumbakam' -- the whole world is one family. This message has gone to the whole world from here only," he added.

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A Member of Va…
 - 
Thursday, 23 Jan 2020

 

Very thoughtful and eye-catching statement by Defense Minister, Rajnath Singh.

Sir, I kindly request you to convey this beautiful message to your Party’s comrades, who are deprived of this dosage for long times and are badly need of this.  

Also, for those from your Party, who are, time and again, spitting the venomous rhetoric against Dalits, Muslims, Christians and others alike.

Yashwant Sinhaji is now doing a wonderful job in this regard.

You will also follow his suit for sure in the days to come; that’s what your honest statement indicates.

    

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