Swiss authorities asked to provide info on deposits by Indians in Swiss banks: Fin Min

India has sought information from Swiss authorities on deposits by its citizens in Swiss banks.

The move comes following reports of deposits by Indian Swiss banks rising to Rs 20,700 crore at the end of 2020, from Rs 6,625 crore at the end of 2019.

"The Swiss Authorities have been requested to provide the relevant facts along with their view on possible reasons for increase/decrease," finance ministry said Saturday.


The finance ministry added that customer deposits have actually fallen from the end of 2019, while funds held through fiduciaries has also more than halved from end of 2019.

"The biggest increase is in 'Other amounts due from customers'. These are in form of bonds, securities and various other financial instruments," it noted.

The ministry added that a number of factors could lead to increase in deposits, including increase in the deposits held by Indian companies in Switzerland owing to increased business transactions and increase in deposits owing to the business of Swiss Bank branches located in India.

"Increase in Inter- bank transactions between Swiss and Indian Banks, a capital increase for a subsidiary of a Swiss company in India and increase in the liabilities connected with the outstanding derivative financial instruments," the ministry added further.

Finance ministry also said that according to financial account information of residents of each country that has been exchanged between India and Switzerland - used for checking tax evasion - in 2019 and 2020, there does not appear to be any significant possibility of the increase of deposits in the Swiss banks which is out of undeclared incomes of Indian residents.

India and Switzerland are signatories to the Multilateral Convention on Mutual Administrative Assistance in Tax Matters (MAAC) and both countries have also signed the Multilateral Competent Authority Agreement (MCAA) following which, the Automatic Exchange of Information (AEOI) was activated between the two countries for sharing of financial account information annually for calendar year 2018 onwards.

The ministry further added that the reports or statistics neither indicate the quantum of alleged black money held by Indians in Switzerland nor include the money that Indians, NRIs or others might have in Swiss banks in the names of third–country entities.