The finance ministry has denied that Indians' funds in Swiss banks have increased

(PTI) New Delhi, Dt

The government woke up in the wake of reports of an increase in funds held by Indians and Indian companies in Swiss banks in 2020. However, the government rejected the reports and on Saturday claimed that Indian consumer funds in Swiss banks had declined since 2014. The finance ministry also sought details from the Swiss authorities on possible reasons for the change in funding held by Indian people and companies in 2020.

The finance ministry said Indians' funds in Swiss banks have halved. But he did not give an exact figure for the funding. Citing data from Switzerland's central bank, PTI reported on June 12 that funds deposited by Indian nationals and companies in Swiss banks during the Corona period reached a 12-year high of 4.5 billion Swiss francs (approximately Rs. The report said there has been a sharp rise in Indians' holdings through Mub Securities and similar resources. However, consumer deposits have declined.

The finance ministry said the reports did not indicate that the rupee deposited by Indians in Switzerland was allegedly black money. In addition, the figure does not include money deposited in Swiss banks in the name of Indian nationals, NRIs or third-party organizations. The ministry noted that, in fact, consumer deposits had declined since the end of 2016. Funds deposited by trustees have also halved since the end of 2016.

The ministry added that the biggest increase was in other types of consumer funds. These funds include bonds, securities and various other financial resources. According to the report, the increase in deposits may have been due to reasons including increase in business transactions by Indian companies. In addition, an increase in the capital of Swiss companies for subsidiaries in India and an increase in liabilities associated with the outstanding derivative financial instruments may also be a possible reason for the rise in deposits.

The ministry said that the Swiss authorities have been requested to provide factual information on deposits of Indians with their views on possible reasons for increase or decrease in deposits in Swiss banks.

It may be mentioned that according to the data of Swiss National Bank (SNB), the total funds of Indian citizens and Indian companies in Swiss banks increased to Rs. 20,600 crore (4.5 Swiss francs), up from 2.3 crore Swiss francs in 2015. The Swiss authorities claimed that Indians' funding had increased in 2020 after a two-year declining trend.