Black money: India has been a big success in the fight against black money. Switzerland has submitted details of the first round of black money of Indians deposited in Swiss banks to India, which also includes information on active accounts. Switzerland's Federal Tax Administration (FTA) has exchanged details of financial accounts, including India, under AEOI's global norms to 75 countries.
Switzerland reported 31 lakh accounts-Black money
The FTA has sent details of a total of 31 lakh accounts to the countries involved in the agreement, while it has received 24 lakh information from these countries. This information includes information related to identification, accounts, and money. These include name, address, nationality, tax identification number, information related to financial institutions, money lying in the account and capital income.
Information received from active accounts-Black money
An FTA spokesperson said that for the first time India has been provided with information about accounts under the AEOI framework. It will report the accounts which are currently active. In addition, details of accounts that have been closed in 2018 will also be made available. The spokesperson said that further information under this arrangement will be shared on September 2020. The FTA, however, refused to give any specific information related to India, saying that it was a matter related to privacy.
Accounts-related to NRI Businessman
Many bank officials and regulatory authorities requested to keep the name confidential, saying that this information mainly related to businessmen including non-resident Indians living in several Southeast Asian countries, America, Britain, some African countries and South American countries. Bank officials admitted that a massive campaign was launched against Swiss bank accounts, which were once completely confidential, and huge amounts were withdrawn from these accounts in the last few years and many accounts were closed. However, the information shared also includes those accounts which were closed in 2018.
Apart from this, there are also at least 100 such old accounts of Indian people, which were closed before 2018. Switzerland is also in the process of sharing information on these accounts as soon as possible. These accounts are related to people involved in the business of auto components, chemicals, textiles, real estate, diamond and jewelry, steel, etc. Regulatory officials said that in the analysis of information received from Swiss banks, special attention is being paid to the information related to people having political contacts.
6,757 crore deposit estimate of Indians-Black money
According to data released by Swiss National Bank (SNB), deposits by Indians in Swiss banks fell by nearly six percent in 2018 to Rs 6,757 crore. This is the second lower level of deposits in the last two decades. In the year 2018, the amount deposited in Swiss banks by all foreign customers decreased by more than four percent to 99 lakh crore rupees. According to the 'Local Banking Statistics' of the Bank for International Settlement (BIS), the amount deposited by Indians in Swiss banks declined by 11% in the year 2018.
India at 74th position in deposit case
India ranks 74th globally in the list of Swiss bank deposits, while Britain ranks first. This information comes from data released by a Switzerland-based bank. Last year, India was ranked 73rd on the list with a jump of 15 places.
In the Swiss bank's ranking of depositors, America is in second place, West Indies in third place, France in fourth place and Hong Kong in fifth place. More than 50% of the money deposited in this bank belongs to the people of these five countries. Nearly two-thirds of the deposits in the bank belonged to the top 10 countries on the money list. Other countries in the top 10 countries include the Bahamas, Germany, Luxembourg, Cayman Islands, and Singapore.