Bringing back black money deposited in Swiss banks and thus solving India’s economic crisis and depositing Rs. 15 lakh in the bank account of every Indian was one of the most attracting election plank of BJP in 2014 general election . It gave BJP a thumping majority and for the first time a BJP government with full majority in Lok Sabha was formed under the leadership of Mr. Narendra Modi. Actually Modi was the brain behind this plank and it was vigorously publicised advertised by every BJP worker from top to bottom. But seven years have passed not a single paisa has been transferred to common man out of this alleged black money . The fact remains that after some strictures passed by Supreme Court in 2016 some action was taken in this direction but nothing worthwhile came to public domain. Finally Mr. Amit Shah then as BJP chief accepted that it was nothing but a political gimmick and termed it as a “Chunavi Jumla”
Now it is a complete U turn of this saga . According to the information funds parked by Indian citizens individually and through companies in Swiss banks including through their India based branches and other financial institutions soared to 2.55 billion Swiss Francs which are roughly equivalent to Indian Rs 20,700 Crore in 2020 on a sharp surge in holdings via securities and other instruments . The increase in aggregate funds of Indian customers with Swiss banks from 899 million Swiss Francs at the end of 2019 reverse a two year declining trend and has taken the figure to highest level in thirteen years.
As per the information received from Swiss National Bank “It stood at a record high of nearly 6.5 billion Swiss francs in 2006 after that it started declining except for a few years including 2011,2o13 and 2017. The biggest difference has been a surge in other amount due to customers from India which rose over six times from 253 million at the end of 2019. These are however, official figures provided by Swiss National Bank and do not indicate the quantum of real amount specially much debated black money allegedly held by Indians in Swiss Banks. These figures also do not include the money that Indians, NRIs and others might have in Swiss banks in the name of third countries entities. Overall customer deposits in Swiss Banks rose in 2020 to nearly two trillion which includes over 600 billion of foreign customers deposits.
India since 2014 has been seeing economic slow down the demonetisation the ill conceived GST and above all two waves of Corona have shattered the Indian economy. Due to economic and fiscal policies of Modi government the banking sector is badly shaken even the RBI has been emptied in one way or the other. All major banks are facing financial crisis many are minimising their branches and curtailing staff. Banking sector is actually under severe stress. The people’s confidence on Indian banks is badly shaken due to which people are shifting their money to swiss and other foreign banks. High rates of GST has become a major cause of tax evasion. This money too is being deposited in Swiss banks.
Black money is basically the money earned through tax evasion. Prior to the irresponsible politicisation of black money this money was invested in real estate and other sectors that was on one hand generating employment and was adding to the economic growth of the nation on other hand. It was and is bad on one hand as it is hampering revenue collection but was better on employment generation and other economic activities. Economists are of the opinion that not unlimited but a certain limit of black money must be allowed to flow with nations economy . it is the time that our tax structure is made judicious so that the tax payers happily pay it, this will break the back bone of black money on the other some system must be developed that this black money deposited in foreign bank flows with our economy. Finally what explanation Modi government has for this surge of black money in Swiss banks the nation wants to know.