The finance ministry has clarified that there is no major chance of an increase in black money flow to Swiss banks.
“In view of the existing legal arrangement for exchange of information of financial accounts, there does not appear to be any significant possibility of the increase of deposits in the Swiss banks which is out of undeclared incomes of Indian residents,” the ministry said in a statement. While, the Swiss authorities have been requested to provide the relevant facts along with their view on possible reasons for the increase or decrease in the assets held in the light of the media reports.
The explanation comes after media reported that deposits by Indian individuals and firms in Swiss banks, including through India-based branches and other financial institutions, jumped to 2.55 billion Swiss francs or over Rs 20,700 crore in 2020 from Rs 6,625 crore at the end of 2019.
Further, the ministry added any increase in deposits in Swiss banks by Indians could be due to higher deposits by Indian companies in Switzerland amid rise in business transactions and increase in deposits owing to the business of Swiss Bank branches located in India. An increase in interbank transactions between Swiss and Indian banks, a capital increase for a subsidiary of a Swiss company in India and rising liabilities connected with the outstanding derivative financial instruments could also be the reason for the increase in deposits.