An increase in Indian deposits in Swiss banks has been recorded. Swiss National Bank said in the figures released that Indians’ money in Swiss banks has gone up by 50 percent to reach nearly seven thousand crores.
According to the Swiss bank, the money of all foreign customers increased by 3% in 2017 to 1.46 trillion Swiss francs or about 100 lakh crores.
How is the increase in Indian money deposited in Swiss bank? On this same question, Correspondent Manasi Dash talked to former Professor Arun Kumar of economics.
Read Professor Arun Kumar’s View
The news of the increase of 50% of Indian wealth in Swiss banks has come to know that this amount is Rs. 7 to 10 thousand crores. But it is not because these money is deposited in the Swiss bank, so it will be black money.
The black money that goes in Swiss bank accounts does not go straight. The money sent from India is sent by shale companies, which are firms.
The process of sending black money is limited in many layers. For example, it first reaches Bahamas or Panama via firms and then reaches into Swiss bank accounts from there.
That is, Indians have money in accounts of Swiss banks, but these money has not reached India directly through tax haven countries. Obviously if the Swiss bank gives information about the account holders, then they will tell the Indians who came there directly from India.
As an example, if Mr X has sent money from the Swiss bank in Swiss bank, then asking about it will know that it is British money. That is why most British funds are in Swiss accounts, not Indian money.
The figures of Indian money which have come in Swiss banks, are very few. This will lead to a lot of money in the Swiss bank account because they are giving the figure of money directly from India.
Four years ago, the figure of 14 thousand crores was decreasing year after year. After three years, after the increase of seven thousand crores (50%), now it is a small amount. The Swiss bank is not fully aware of the real Indian wealth.
Benefits not made by notebook
The purpose of the note-bar was to rein in black money, but the money that is being talked about in Swiss banks may be that the government has been sent out of fear of stringent policies.
The Reserve Bank of India (RBI) launched a scheme called LabLease Remittance (LRS), in which two and a half million dollars could be sent out of the country in the name of their families. It may be that this money has gone in it.
RBI has made the LRS scheme very tight. Now only money can be sent to parents, wife and children, not for anyone else. Due to this the people may have sent the money out of fear of the grip of the government.
Many rich people are freed from the country and their money can be deposited there. So this is a legitimate money.
There is a problem of doing business, there is also a reason to go out of money. Due to this fear, many millionaires can become NRIs too. A lot of money can go out of India from now.