Second yr in a row, Indian funds in Swiss banks rise; at 14-yr excessive in 2021

Money parked by Indians in Swiss Banks jumped to a 14-year-high of CHF 3.83 billion in 2021 on the again of rise in holdings and buyer deposits, newest knowledge from Zurich-based Swiss National Bank (SNB) launched on Thursday confirmed.

The cash parked by Indians had proven a decline in 2018 and 2019 however has once more picked up. Marking the second consecutive yr of rise, mixture funds by Indians elevated from 2.55 billion Swiss francs in 2020. ‘Total liabilities’ of Swiss banks or ‘amounts due to’ their Indian shoppers on the finish of 2021 of CHF 3,831.91 million included CHF 602.03 million in buyer deposits (up from CHF 504 million at 2020-end), CHF 1,225 million held by way of different banks (up from CHF 383 million), and CHF 3 million by way of fiduciaries or trusts (up from CHF 2 million).

The highest part of CHF 2,002 million (up from CHF 1,665 million) was ‘other amounts due to customers’ within the type of bonds, securities and numerous different monetary devices. The complete quantity stood at a file excessive of almost 6.5 billion Swiss francs in 2006, after which it largely declined, apart from a couple of years together with in 2011, 2013, 2017, 2020 and now in 2021, as per the Swiss National Bank (SNB) knowledge.

India and Switzerland had, for computerized sharing of monetary account info, signed a Joint Declaration on November 22, 2016 for activation of AEOI in tax issues between the 2 nations. The use and disclosure of the data acquired is ruled by the confidentiality provisions of the India-Switzerland tax treaty.

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According to the SNB, its knowledge for ‘total liabilities’ of Swiss banks in direction of Indian shoppers takes into consideration all varieties of funds of Indian clients at Swiss banks, together with deposits from people, banks and enterprises. This consists of knowledge for branches of Swiss banks in India, as additionally non-deposit liabilities.

Total buyer deposits throughout the Swiss banking system, comprising 239 banks, rose in 2021 to just about CHF 2.25 trillion. The general funds of international shoppers, together with establishments, rose to just about CHF 1.5 trillion. In phrases of property (or funds due from clients), Indian shoppers accounted for CHF 4.68 billion on the finish of 2021, up 10 per cent. The UK topped the checklist for international shoppers’ cash in Swiss banks at CHF 379 billion, adopted by the US (CHF 168 billion). Other international locations within the high 10 had been West Indies, Germany, France, Singapore, Hong Kong, Luxembourg, Bahamas, the Netherlands, Cayman Islands and Cyprus. India was positioned at forty fourth place, forward of nations like Poland, South Korea, Sweden, Bahrain, Oman, New Zealand, Norway, Mauritius, Bangladesh, Pakistan, Hungary and Finland.