Congress and BJP spar over 50% rise in Indian money in Swiss banks

Money parked by Indians in Swiss banks rose 50% to Rs 70 billion in 2017, reversing a 3-year downward trend amid India's clampdown on suspected black money stashed there

The ruling Bharatiya Janata Party (BJP) and Congress have pointed fingers at each other on Friday over 50 per cent rise in money parked by Indians in Swiss banks.
 
Citing media reports, finance minister Piyush Goyal said 40 per cent of the money is because of liberalised remittance scheme (LRS), which was introduced by the then finance minister P Chidambaram.
 
According to the liberalised LRS, an individual could remit up to $2,50,000 per year, he added.
 
“We will have all information if someone is found guilty, (and) the government will take strong action against the culprits,” Goyal said.
 
Congress president Rahul Gandhi, on the other hand, alleged that Prime Minister Narendra Modi said a 50 per cent jump in deposits by Indians is “white money” and that there is no “black money.”

 
“In 2014, he said: I will bring back all the ‘black’ money in Swiss Banks & put Rs 150,000 in each Indian’s bank account. In 2016, he said: Demonetisation will cure India of black money. In 2018, he says: 50 per cent jump in Swiss Bank deposits by Indians, is white money. No black in Swiss Banks,” Gandhi said on Twitter.
 

The Congress also targeted the Prime Minister over his government's claims of putting a clampdown on black money and said Swiss bank deposits during the UPA had fallen and the same has risen by 50 per cent under the Modi government.
 
“Swiss Bank deposits fell during Manmohan Singh’s time, only to rise to record levels under PM Modi. The current increase of 50.2 per cent post demonetisation, is the maximum since 2004,” the party said on Twitter.

 
Replying to queries on rise in Indians' deposits in Swiss banks, Goyal said, “The data that you alluded to will come to us. So, how are you assuming that this is black money or this is illegal transaction.”
 
Money parked by Indians in Swiss banks rose over 50 per cent to Rs 70 billion in 2017, reversing a three-year downward trend amid India’s clampdown on suspected black money stashed there.
 
In comparison, the total funds held by all foreign clients of Swiss banks rose about 3 per cent to about Rs 100 trillion 2017, according to data released by the Swiss National Bank (SNB), the central banking authority of the Alpine nation.
 
Union minister Arun Jaitley warned that Indians having illegal deposits in Swiss banks would face harsh penal proceedings under the black money law after Switzerland starts real time sharing of details of accounts from January.

 
“A news item has appeared on Friday indicating an increase of money by ‘Indians’ in the Swiss banking system. This has led to misinformed reaction in certain circles, raising a query whether the government’s anti-black money steps have yielded results,” Jaitley said in a blog.