In spite of the Modi’s rhetoric, fight against black money has never yielded any tangible results. A recent report by Swiss National Bank (SNB), the central banking authority of Switzerland has stated that there is a 50% jump in money deposited in Swiss banks by Indians amounting to Rs 7,000 crore (CHF 1.01 billion) in 2017.
The spike occurred after a downward trend for three years. In comparison, the funds held by foreign nationals in Swiss bank increased only by 3%. Such funds in the total amount to CHF 1.46 trillion or about Rs 100 lakh crore in 2017.
It is a shocker to know that rich and famous Indians are back to their old ways. All the efforts made by the Modi government could not deter them. The much-publicized drive against black money stashed abroad by Indian nationals was effective only partially. The government tried to get the details of the individuals who parked their money in Swiss banks by making a deal with the Switzerland Government.
Owing to these efforts there was a drastic fall of 45 per cent of Indian money in Swiss banks in 2016. This amount of about Rs 4,500 crore was lowest ever since the Swiss banks started making the data public in1987.
The report reveals that the funds held directly by Indians amounted to Rs 6,891 crores in 2017 while the money held through wealth managers and in the name of trusts rose to 112 crores. The data shows that the Indian money included Rs 3,200 crore in the form of customer deposits, Rs 1,050 crores through other banks and Rs 2,940 crore as other liabilities such as securities in 2017.
There was speculation that the drop in the Indian money in Swiss banks earlier did not mean that the money is brought back to the country, but the money was only moved to other destinations owing to the fear of a crackdown. The current rise might indicate that the coming elections may have a role in stashing money in these banks for future election funding.