Swiss money: SNB says its data include total deposits of Indian customers

Amid a controversy over its official data showing 50 per cent surge in Indians' money in Swiss banks last year to CHF 1.01 billion (about Rs 7,000 crore), Switzerland's central banking authority SNB today said these figures are for total deposits of Indian customers, including from banks and enterprises.

The Swiss National Bank (SNB) further said its figures include the "data from branches of Swiss banks in India" and therefore the locational banking statistics (LBS) compiled by the Bank for International Settlements (BIS), a global central banking body, would be more reliable.

Only only one Swiss bank -- Credit Suisse -- has a branch in India, while two others -- UBS and Zurcher Kantonal Bank -- are present in the country through one representative office each, as per the RBI data updated till January 31, 2018.

Weeks after SNB's annual publication, 'Banks in Switzerland', showed a rise in Indians' money in Swiss banks in 2017 after falling for three consecutive years, Finance Minister Piyush Goyal today said the Indian deposits in Swiss banks actually fell by 34.5 per cent last year as per the data from the BIS.

Goyal told the Rajya Sabha during Question Hour that he discussed the issue with Swiss authorities, who told him in a written reply that media reports "have not taken account of the way the (SNB) figures have to be interpreted".

The minister said that according to Swiss authorities, more reliable data source is the locational banking statistics of the BIS, which measures international banking activity from a residence perspective, focusing on the location of banking office and captures around 95 per cent of all cross-border banking activity.

The BIS data show that non-bank loans and deposits -- which constitute the individual and corporate deposits and exclude inter bank transactions -- have fallen by 34.5 per cent in 2017 to USD 524 million compared to USD 800 million in 2016, Goyal said and vowed to continue the crackdown on black money.

Replying to e-mailed queries in this regard, the SNB said the figures that showed an increase of 50 per cent in Indians' money in Swiss banks "are for total deposits of Indian customers at Swiss banks (ie. total liabilities of Swiss banks towards India), including deposits from banks and enterprises".

On whether the BIS data was more reliable, the SNB said, "That is correct. The data of Swiss National Bank include also data from branches of Swiss Banks in India".

As per the BIS website, the 'amount outstanding' towards non-bank loans and deposits of Indians in Swtizerland-based banks stood at USD 94.84 million (Rs 653 crore) at the end of 2017, down nearly 44 per cent from USD 168.13 million (Rs 1,158 crore) at 2016-end.

Further, the latest BIS data shows this figure to have risen again to USD 100.88 million (Rs 695 crore) at the end of March 2018.

In its emailed reply to

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

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