In one of its first proactive attempts to bring back billions of Indian money in Swiss banks, the government today opened up the banking sector exclusively for the Swiss banks.
After winning a landslide victory with promises of economic reforms and more transparency, the BJP government has started to deliver on its promises.
“With Swiss bank branches accessible to the common man, we can stop illegal outflow of Indian money, while respecting the privacy and economic integrity of people who want their money to be tax-free. It is like hitting two mangoes with one stone,” a spokesperson for the Finance ministry explained.
Leading entrepreneurs and economists welcomed the decision, although with certain caution that this will trigger deflation of the economy. The decision is not without opposition, as customers with existing illegal offshore accounts demanding a waiver of processing fee they had to pay to maintain their accounts.
The value-added services for the indigenous Swiss accounts include round-the-clock black money processing, bitcoin payments, and instant money transfer towards underground betting transactions, according to Finance ministry sources.
Subramanian Swamy, a strong advocate of abolition of monthly salary system, welcomed what he called a ‘baby step’ towards fiscal credibility of the economy.
A white paper issued by the Parliamentary Committee appointed to study the move has estimated that $5 billion per annum can be prevented from illegally leaving the shores of the nation, resulting in an additional GDP of 5.6%.