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

June 14, 2012

paise


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.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
March 15,2020

Bhopal, Mar 15: Madhya Pradesh Chief Minister Kamal Nath on Saturday sought the intervention of Home Minister Amit Shah for the "release" of 22 Congress MLAs in Karnataka, saying they had been held "captive" and were under "pressure".

In a letter to Shah, Chief Minister Nath said the BJP's demand for floor test had "no meaning" till the MLAs do not reach the state.

He said that the MLAs do not have any means of personal communication and all efforts to reach them have failed.

In the four-page letter, Nath said Governor Lalji Tandon had told him that the responsibility of security of those who will come to meet the Speaker should be with the CRPF but as the Chief Minister, it is his duty to ensure the security of all residents of the state including MLAs.

"I assure you that if these 22 MLAs are released by the Karnataka Police, then I will ensure maximum security by the state government so that they are able to convey their views without fear and take part in the proceedings of the assembly," Nath said.

He urged Shah to use his powers as Home Minister so that 22 MLAs safely reach Madhya Pradesh and discharge their responsibilities "without fear or greed" in the assembly session beginning on March 16."

Chief Minister Nath said that he had been informed that the MLAs had been deprived of all personal communication facilities.

He said that a father was not allowed to meet his son and two ministers who were accompanying the father of the legislator were "arrested" and manhandled by the Karnataka Police.

"My efforts to reach them as also of their relatives have failed which proves my apprehension that they are under captivity."

He said the videos released in the name of MLAs to "mislead" the people of the state were similar. "This proves that all these MLAs are under pressure and they are being forced to act in a particular way," he said.

Nath said that he was drawing Shah's attention to the developments in the state since March 3 which were aimed at destabalising the government.

He said three Congress MLAs, one BSP, and one independent MLA were taken to Gurugram and two ministers of his government were able to "rescue" the BSP legislator.

He said the three Congress MLAs and the independent MLA were later taken to Bengaluru by the BJP. He said a BJP MLA and a party functionary accompanied them.

"Later, 19 Congress MLAs were taken to Bengaluru in chartered planes and the arrangement was done by the BJP," he said, adding that they were accompanied by two former BJP MLAs and a former minister.

Kamal Nath said the number of MLAs in Bengaluru grew to 22 and they are all in the protection of the Karnataka Police.

He said some BJP leaders from Madhya Pradesh can be seen in pictures of the place where the MLAs were staying. "All reported expenses on these MLAs are being borne by the BJP," he said.

He said the BJP leaders had told the media about the resignation of MLAs and they had not presented themselves before the assembly Speaker.

Kamal Nath said he was concerned about the security of the MLAs and had written to the Governor earlier.

"You would agree with me that the demand for floor test has no meaning till the 22 MLAs are in captivity. This is unprecedented that the BJP is demanding floor test and several Congress MLAs have been kept outside the state,' he said.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
March 7,2020

New Delhi, Mar 7: No country in the world says everybody is welcome, External Affairs Minister S Jaishankar said on Saturday, hitting out at those criticising India over the Citizenship (Amendment) Act.

Jaishankar criticised the United Nations Human Rights Council (UNHRC) for its criticism on the situation in Jammu and Kashmir, saying its director had been wrong previously too and one should look at the UN body's past record on handling the Kashmir issue.

"We have tried to reduce the number of stateless people through this legislation. That should be appreciated," he said when asked about the CAA at the ET Global Business Summit. "We have done it in a way that we do not create a bigger problem for ourselves."

"Everybody, when they look at citizenship, have a context and has a criterion. Show me a country in the world which says everybody in the world is welcome. Nobody says that," the minister said.

The external affairs minister said moving out of the Regional Comprehensive Economic Partnership (RCEP) was in the interest of India's business.

Asked about the UNHRC director not agreeing with India on the Kashmir issue, Jaishankar said: "UNHRC director has been wrong before.

"UNHRC skirts around cross-border terrorism as if it has nothing to do with country next door. Please understand where they are coming from; look at UNHRC's record how they handled Kashmir issue in past," he added.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
June 20,2020

Hyderabad, Jun 20: IAF Chief Air Chief Marshal RKS Bhadauria on Saturday said that the force is well prepared and suitably deployed to respond to any contingency and it will never let the sacrifice of the bravehearts of Galwan go in vain.

"It should be very clear that we are well prepared and suitably deployed to respond to any contingency. I assure the nation that we are determined to deliver and will never let the sacrifice of the braves of Galwan go in vain," IAF Chief Air Chief Marshal Bhadauria said here.

Bhadauria was speaking at the Combined Graduation Parade (CGP) at Air Force Academy in Hyderabad.

His remarks come days after 20 Indian soldiers lost their lives in the violent face-off on June 15-16 during an attempt by the Chinese troops to unilaterally change the status quo during the de-escalation in eastern Ladakh.

Speaking about the current border situation with China, he said: "We are aware of the situation, be it on LAC or beyond, be it their air deployments, their posture and kind of deployments. We've full analysis and we have taken necessary action that we need to take to handle any contingency that may come up."

"We are monitoring all the moments and we are aware of the full situation," he added.

He further said that in spite of the "unacceptable Chinese action" at Galwan Valley in eastern Ladakh, which claimed lives of 20 Indian Army personnel, efforts are underway to ensure that the current situation at the Line of Actual Control (LAC) is resolved peacefully.

He asserted that the IAF is determined to deliver and the development at the LAC in Ladakh is a small snapshot of what the force is required to handle at short notice.

The IAF Chief further appealed to people to join him in paying tribute Colonel Santosh Babu and his brave men who made the sacrifice while defending the LAC in Galwan valley.

"The gallant actions in a highly-challenging situation have demonstrated our resolve to protect India's sovereignty at any cost," the Indian Air Force (IAF) chief said.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.