Here’s Why Indians have a Penchant for Swiss Banks Despite Government’s Scrutiny

Last week, the news about Indians having their deposits in the Swiss banks increased by 50% in 2017 made headlines across the nation. It’s surprising, given that most Swiss banks barely pay any interest on the deposited money and rather charge the customers for keeping the money with them. In addition to that, the government assures that it will not spare anyone who is found to have deposited illegal money in these banks. So, why are they still popular among Indians?

Swiss banks offer such a level of privacy that can’t be matched by other banks across the globe. A banking law enacted in 1934 declared it a legal offence for the Swiss banks to disclose the names of the account holders. Anyone can open an account in any currency, and their funds are protected by the Depositor Protection Agreement.

Photo credit: Keith Laverack on Visualhunt / CC BY-ND