June 29: India’s efforts to cripple foreign black money deposits seem to be making the least of impact. According to the annual data released by Swiss National Bank, the total money deposited by Indians in the banks of Switzerland soared to over 1.01 billion Swiss Francs, which translates to Rs 7000 crore.
The deposit has touched the 1 billion mark courtesy of a 50% rise in the money parked by Indians during the previous year. Notably, this is also the first time in three years that the banks of the Alpine nation witnessed an upward trend of deposit from Indians.
While the past years have witnessed a downfall in the Indian funds, this year saw a complete reversal. More surprising is the fact that the jump comes just a year after the Swiss banks witnessed its biggest ever drop in Indian funds. The total deposits in 2016 amounted to CHF 676 million (Rs 4500 crore) during 2016, which was 45% less than that of previous year.
The data also reveals that around CHF 999 million of the 1 billion CHF funds were held directly by Indians in the Swiss banks, while the remaining funds were held through fiduciaries or wealth managers. Also, CHF 464 million (Rs 3200 crore) is deposited in the form of customer deposits with the Swiss banks, while CHF 152 million (Rs 1050 crore) is through other banks. The remaining funds are parked in the form of other liabilities such as securities at the end of 2017.
Indian funds were at its peak in 2006, during when Swiss banks had funds worth CHF6.5 billion (Rs23000 crore). Only twice has Indian funds registered an increase since that. One was in 2011 during when there was an increase in the funds by 12%, and the other was in 2013 when deposits registered an increase of 43%.
The current rise by 50.2% surpasses all those figures, except for the one during 2004 which saw the maximum increase of 56%. As for the overall funds, the deposits from foreign clients in the Swiss bank amount to CHF 1.46 trillion or Rs 100 lakh crore in 2017, making a jump of 3% from the year before.