Modi's Black Money Target, Money Increased from 2013

New Delhi: The Bhartiya Janata Party had promised to release the names of the people who had
money accumulated in Swiss banks. Their reaction to the recent reports about an increase in the amount of money deposited By Indians in these banks is awaited.

According to the latest figures released by the Central Banks of Switzerland, the money deposited by Indians in banks in Switzerland was, in 2013, about 2.3 billion Swiss franc, which is approximately Rs. 14,000 crore.

This is an increase from the 1.42 billion Swiss franc that were deposited in 2012, which means this year the deposits have seen a rise of about 40%. The numbers were disclosed to Indian authorities.

It is not clear if the increase in deposits is due to opening of new accounts or if it is a further deposit in existing accounts. Additionally, the Swiss authorities have not released names of the account holders.

No information on the black money!

It’s been three years since the Manmohan Singh government had started a procedure to track the black money in Swiss banks. There has been no development on the same, even after establishing a committee of experts in March 2011, and asking them to study and analyze the existing trends of the money being transferred. The deadline for the committee to submit their reports was 21st December, 2012.
But the efforts by the experts have not yielded any results.

The recently elected Modi government had made promises of naming the holders of these accounts. They had vouched for full transparency in disclosing the holders of Swiss accounts, most of which is accounted for as black money.

What is it about Swiss accounts?

Switzerland’s financial sector has largely been conservative, and they are lauded for their sound management, which appeals to individuals. In addition to that, Switzerland’s in a non-allied, neutral country, which only rushes in an air of safety and security.

Privacy is the biggest attractor. It is a crime- not just a civil offence- if one flouts banking regulations in Switzerland. As easy it is to open and have an account in Swiss banks, it is more difficult to get information on a particular account.

The high level security and privacy that the Swiss banks provide has in the past made it easier for people to deposit their money, most of which is said to be from illicit activities not just India, a lot of other countries like the United States have tried to crack down on Swiss banks, but results have not been so fruitful.

India can only wait and watch if the Modi government delivers on its promise, and brings out the list of Swiss account holders.