India seeks info from Switzerland on deposits

The government has sought information from Switzerland on deposits by Indian citizens in Swiss banks.

The moves comes following reports that deposits by Indians in Swiss banks had risen to Rs.20,700 crore by the end of last year, from Rs.6,625 crore at the end of 2019,reversing a two year trend and marking a peak in over a decade.

The Swiss authorities have been requested to provide the relevant facts along with their view on possible reasons for increase/decrease,” the finance ministry said on Saturday.

The customer Deposits have fallen, while funds held through fiduciaries had also more than halved from the end of 2019, the ministry said. 

“The biggest increase is in ‘other amounts due from customers.’ These are in the form of bonds, securities and various other financial instruments, “it noted.

A number of factors could have led to the increase in deposits.

These include an increase in deposits held by Indians companies in Switzerland and higher dressiness transactions and higher Deposits due to the business of Swiss bank branches located in India, the ministry said.

It added that the increase could also due to rising inter-bank transaction between Swiss and Indians banks, a capital increase for a subsidiary of a Swiss company in India and increase in the liabilities connected with the outstanding derivative financer instruments.

 According to the financial accounts information of residents of each country exchanged between India and Switzerland and used of checking tax evasion in 2019 and 2020.There is no significant possibility of an increase in deposits because of undeclared income by Indian residents, the ministry pointed out.  S-ET

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *