PM Modi's War On Black Money Is Showing Results, Indian Money In Swiss Bank At Record Low

The crackdown on black money was one of the very first things the Narendra Modi-led government began, in 2014, immediately after it assumed office. The relentless crackdown, it seems, has started showing results.

AFP

Money parked by Indians in Switzerland¡¯s banks nearly halved to 676 Swiss francs (about Rs. 4,500 crore) in 2016 to hit a record low amid a continuing clampdown on the suspected black money stashed behind their famed secrecy walls.

In comparison, the total funds held by all foreign clients of Swiss banks somewhat rose to CHF 1.42 trillion or about Rs 96 lakh crore (from CHF 1.41 trillion a year ago).

AFP

The total funds held by Indians directly with Swiss banks stood at CHF 664.8 million at the end of 2016, while the same held through fiduciaries was nearly $11 million, as per the latest data published on Thursday by the country¡¯s central banking authority SNB (Swiss National Bank).

The total money of Indians fell by 45 % during 2016 to CHF 675.75 million, marking the biggest ever yearly decline in such funds.

This included nearly CHF 377 million in form of customer deposits, about CHF 98 million owed to Indians through other banks and CHF 190 million in form of other ¡®liabilities¡¯.

AFP

The figures fell sharply across all categories last year, the SNB data showed.

This is the lowest amount of funds held by Indians in the Swiss banks ever since the Alpine nation began making the data public in 1987 and marks the third straight year of decline.

The funds held through fiduciaries or wealth managers alone used to be in billions till 2007 but has been falling amid fears of a regulatory crackdown.

The funds held by Indians with Swiss banks stood at a record high of CHF 6.5 billion (Rs 23,000 crore) at 2006-end but has now come down to nearly one-tenth of that level in about a decade.

AFP

The quantum of these funds has been falling since then, except for in 2011 and in 2013 when Indians¡¯ money had risen by over 12 % and 42%, respectively.

As per the available data since 1987, the earlier lowest ever figure was recorded in 1995 at CHF 723 million.

The latest data from Zurich-based SNB comes ahead of a new framework for automatic exchange of information between Switzerland and India to help check the black money menace.