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Had it not been for the rampant allegations of politicians stashing black money in Swiss banks, Indian political theatre would have been a lot less colourful. Black money and the green bottle of VAT69 were the two signatures of classic villains – remember Ajit with his Mona darling? – that Bollywood masala films have thrived on for decades.
Swiss signature
Of the four brand ambassadors of Switzerland – banks, chocolates, watches and the Alps – banks perhaps have the highest recall since mid-20th century when the tiny picturesque nation became a preferred destination for keeping funds offshore for people across the globe. Even in Covid-riddled 2020, Swiss banks were the global leaders in cross-border wealth management, said the Swiss Bankers Association.
Down the years, political parties and activists demanding that the government discloses the names of those who have kept a part of their fortunes in Swiss banks have often dominated the decibel levels in the public discourse in India. The number of Indians who do not believe that successful politicians, businessmen, actors, sportsmen have not parked their money in Swiss banks can be counted on fingertips.
CBI view
In February 2012, even the CBI director said that Indians have stashed $500 billion in foreign countries, more than the citizens of any other country.
On June 17, annual data from Switzerland’s central bank showed that funds parked by Indian individuals and firms in banks of that country rose to more than Rs 20,700 crore (2.55 billion Swiss francs) in 2020. Incidentally, this amount would be able bear about half the vaccination bill of the Union government in FY22.
Reversal of a decline
Cumulative deposits from Indian customers in Swiss banks rose to Rs 6,625 crore at the end of 2019. It marked a reversal of a two-year decline.
However, the data showed that despite the excitement and enthusiasm of Indians about money being stashed in Switzerland, India stood at 51st position.
England on top
The first and second position were occupied by the UK and the US. The Brits deposited 377 billion and the Americans 152 billion Swiss francs.
The countries that left India behind included China, Russia, West Indies, France, Hong Kong, Germany, Singapore, Luxembourg, Cayman Islands, Bahamas, the Netherlands, UAE, Japan, Australia, Italy, Saudi Arabia, Israel, Ireland, Turkey, Mexico, Austria, Greece.
India was placed ahead of New Zealand, Norway, Sweden, Denmark, Hungary, Mauritius and neighbours Pakistan, Bangladesh and Sri Lanka.
Interestingly, the two other countries in the sub-continent, Bangladesh and Pakistan witnessed a lot of noise around black money in Switzerland.
Deposits from Bangladesh declined last year, while that from Pakistan jumped by almost 100% to 642 million Swiss francs.
2006 a record year
Data from the Swiss National Bank stated that Indians had invested a record high of nearly 6.5 billion Swiss francs in 2006. Since that year the amounts began declining and was reversed in a few years like 2011, 2013 and 2017.
However, these are official holdings and does not include amounts that Indians might be holding as block money in that country. These amounts do not feature that Indians might have in Swiss banks in the identity of third-country entities.
Another measure
According to another measure, individual Indians deposited about Rs 932 crore, which marks a rise by 39% in 2020. This is according to the ‘locational banking statistics’ of the Bank for International Settlement. According to some, it is a more reliable measure.
However, Swiss authorities have always maintained that they share data with Indian authorities and their banks don’t help in creating black money.
Where would have poor Ajit parked his money now?