Money deposited by Indians in Swiss banks rose over 50 per cent to CHF (Swiss Franc) 1.01 billion (Rs 7,000 crore) in 2017, reversing a three-year downward trend while India continued efforts to clamp down on suspected black money stashed there.
The total funds held by all foreign clients of Swiss banks saw a rise of about 3 per cent to CHF 1.46 trillion that is about Rs 100 lakh crore in 2017, according to Swiss National Bank’s official annual data released on Friday.
The rise in 2017 comes after money parked by Indians in the Swiss bank plunged from CHF 2.03 billion (Rs 14,000 crore) in 2013 to CHF 676 million (Rs 4,660 crore) in 2016. In fact, in 2016, the Indian money in Swiss banks had fallen by 45 per cent, marking their biggest ever annual drop.
This is only the third time when there has been such a rise in Indians' money in Swiss banks. In 2011 there was a record increase of 12 per cent, in 2013 it was recorded to be 43 per cent and now in 2017, by 50.2 per cent.
The latest data released by the Zurich-based Swiss National Bank (SNB) comes months after a new framework for the automatic exchange of information between Switzerland and India was put in place to help check the black money problem.
While Switzerland has begun sharing foreign client details on evidence of wrongdoing provided by India and some other countries, it has agreed to further expand its cooperation on India’s fight against black money with a new pact for automatic information exchange.
Report of the surge in Indian money came as an unwelcome surprise that opposition parties have spoken against.
BJP Rajya Sabha MP Subramanian Swamy took a hit at the government for failing to curb generation of black money.
Swamy tweeted, "Secret Swiss bank accounts deposits from global sources rose by three per cent in last 12 months. Indians' deposits however grew 50 per cent."
Breaking News: Major success of Finance Secy Adhia. Secret Swiss Bank accounts deposits from global sources rose by 3% last 12 months. Indians deposits however grew 50% . Adhia would have managed more if Rajeshwar was not a distraction.
— Subramanian Swamy (@Swamy39) June 29, 2018
Yashwant Sinha, former Finance Minister tweeted his criticism at the increase.
I was wrong in criticising demonetization. It has completely stopped stone pelting in Kashmir and ended black money in India and Switzerland?
— Yashwant Sinha (@YashwantSinha) June 28, 2018
Sitaram Yechury, General Secretary of the Communist Party of India alleged that Prime Minister, Narendra Modi has no time or intention to remember the tall promises he made in 2014.
"From depositing 15 lakh in each bank account to making Rupee stronger to doubling farmers' income, he has only insulted and humiliated us Indians," he said in a tweet.
From falsifying history to making new promises, Jumlaman has no time or intention to remember tall promises he made in 2014. From depositing 15 lakh in each bank account to making Rupee stronger to doubling farmers' income, he has only insulted & humiliated us Indians #BlackDays pic.twitter.com/x0LZaiBbfm
— Sitaram Yechury (@SitaramYechury) June 28, 2018
In another tweet, Yechury said the data is no surprise since the "Modi government writes off lakhs of crores of unpaid loans of crony corporate and businessmen flee India after looting public money under his watch.”
Indian money in Swiss banks rises 50% to over ₹7,000 cr in 2017: a fraction of Indian Black Money in Switzerland. Modi govt writes off lakhs of crores of unpaid loans of crony corporates, businessmen flee India after looting public money under his watch; this data is no surprise pic.twitter.com/8A43bcw4VG
— Sitaram Yechury (@SitaramYechury) June 28, 2018
The Congress also brought up the issue in a tweet that said, "One of PM Modi's long-standing campaign promises of bringing back black money falls flat. While you sit and wait for your promised Rs 15 lakh, more capital has flown the coop."