Indian slush funds in Swiss banks may gross over $2.5 bn

Also, judicial scrutiny and political heat over black money forcing Indians to move monies to other tax havens

PTI | July 25, 2011



It's official now -- Indians hold about USD 2.5 billion (over Rs 11,000 crore) in Swiss banks, but this figure of Switzerland's central bank may be a gross understatement of the total wealth directly and indirectly held there by entities from India.

The ever-growing judicial scrutiny and political outcry over alleged stashing of black money in Swiss banks also seems to be forcing Indian entities to move their monies to other safe havens like the Middle East, Singapore and Mauritius.

Some half a billion dollars have been moved out in the last three years, according to the central bank's figures.

In the first-ever disclosure of money held in various Swiss banks by Indians, Swiss National Bank (SNB) has said the quantum of such deposits stood at 1.945 billion Swiss francs (about USD 2.5 billion) at the end of 2010.

Giving a break-up of this amount, Walter Meier, the spokesperson for the SNB president, said this included about USD 2.1 billion dollars in the form of savings and deposits by Indian individuals, financial institutions and corporates.

The remaining about USD 400 million is of fiduciaries largely operating for private individuals from India.

Meier, however, said the bank had no further information when asked about the identity of these funds.

He further said that two of the largest Swiss banks, UBS and Credit Suisse, account for a vast majority of the deposits of entities from India.

Out of the 1.66 billion Swiss francs (USD 2.1 billion) held by Indian individuals and institutions at the end of 2010, the two banks accounted for 1.02 Swiss francs (USD 1.5 billion) and the remaining 636 Swiss francs (USD 775 million) are held in Swiss cantonal banks and private banks, he added.

Comments

 

Other News

The economics of representation: Why women in power matter

India’s democracy has grown in scale, but not quite in balance. Women today are active participants in elections, influencing outcomes in ways that were not as visible earlier. Yet their presence in legislative institutions continues to lag behind. The Nari Shakti Vandan Adhiniyam was meant to addres

India will be powerful, not aggressive: Bhaiyyaji

India is poised to emerge as a global power but will remain rooted in its civilisational ethos of non-aggression and harmony, former RSS General Secretary Suresh `Bhaiyyaji` Joshi has said.   He was speaking at the launch of “Rashtrabhav,” a book by Ravindra Sathe

AI: Code, Control, Conquer

India today stands at a critical juncture in the area of artificial intelligence. While the country is among the fastest adopters of AI in the world, it remains heavily reliant on technologies developed elsewhere. This paradox, experts warn, cannot persist if India seeks technological sovereignty.

RBI pauses to assess inflation risks, policy transmission

The Reserve Bank of India (RBI) has begun the new fiscal year with a calibrated pause, keeping the repo rate unchanged at 5.25 per cent in its April Monetary Policy Committee (MPC) meeting. The decision, taken unanimously, reflects a shift from aggressive policy action to cautious observation after a signi

New pathways for tourism growth

Traditionally, India’s tourism policy has been based on three main components: the number of visitors, building tourist attractions and providing facilities for tourists. Due to the increase in climate-related issues and environmental destruction that occurred over previous years, policymakers have b

Is the US a superpower anymore?

On April 8, hours after warning that “a whole civilisation will die tonight,” US president Donald Trump, exhibiting his unique style of retreating from high-voltage brinkmanship, announced that he agreed to a two-week ceasefire with Iran. The weekend talks in Islamabad have failed and the futur


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter