OFFSHORE BANKING

5.2 CONCLUSION

Banks play very important role in the economic life of the nation. The health of the economy is
closely related to the soundness of its banking system. Although banks create no new wealth
but their borrowing, lending and related activities facilitate the process of production,
distribution, exchange and consumption of wealth. In this way they become very effective
partners in the process of economic development. Today, modern banks are very useful for the
utilization of the resources of the country. The banks are mobilizing the savings of the people
for the investment purposes. The savings are encouraged and saving rate increases. If there
would be no banks then a great portion of a capital of the country would remain idle. At present
the Indian financial system consists of public, private, cooperative, development and foreign
banks. Reserve Bank of India is the central controlling authority for all banks in India.
This deals with the background and Perspective Framework of the Study which includes,
Banking history in India, Indian Banking from its initiation to the present through Review of
the literature, Scope and Objectives of the study, Limitations of the study, Methodology of the
Study, Significance and Need of the Study, Use of Statistical Tools, and References. After going
through background and Perspective Framework of the Study, it is necessary to touch upon the
conceptual Regulatory Framework of the Indian Banking industry before its assessment.
No longer the private domain of the privileged and other individuals with dubious reputations,
offshore banks now offer legitimate banking services to ordinary folks with assets to protect.
In litigious-happy America, almost anyone can be a target of a frivolous lawsuit. However,
predatory claimants are often deterred when they realize your assets are secured in an offshore
location.
The benefits of offshore banking do not stop at asset protection. More often than not, you also
end up enjoying a higher interest rate than what most U.S. banks currently offer. From a strictly
financial viewpoint, it makes sense to place some of your assets in an offshore bank. Your
money will simply earn more.
Additionally, by diversifying your asset allocation, you can be assured of access to some of
your assets all of the time. If an unexpected turn of events in your home country threaten your
assets, you will still have the assets you have in an offshore bank available to you.

Ultimately, the best offshore bank is the one that will address and support your individual
financial and asset protection goals. There are offshore banks in island locations such as

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Antigua and Barbados, and in inland jurisdictions like Switzerland and Liechtenstein. There is
no shortage of options; all you have to do is choose and choose well.

5.3 SUGGESTIONS

The world of offshore banking seems like it is for those who want to hide money. Many people
question the legality of an offshore bank and why someone would need to have assets held
abroad. While there is some truth to this mystique of offshore banks, they can be a legitimate
way to help manage your assets.

People who need an offshore bank account usually have a business need for it. This may be a
person who travels abroad often and cannot rely on constantly being at the mercy of exchange
rates or needs to conduct business with local accounts. Daily business operations simply cannot
run as smoothly if you are writing checks off an international account. Not only does this delay
the process of payment, but can create a stigma on a business in communities where people do
not want to deal with "foreigners."

If someone wants to hide money, chances are he will be able to do so in one fashion or another.
People still hide money in coffee cans buried in the back yard. When it comes to offshore bank
accounts, money can be hidden in the same fashion as it can in domestic bank accounts --
essentially siphoned through business and trust accounts where the "owner" does not own the
money. That is money laundering and not legal.

Most offshore accounts require that you declare assets and interest in your home country. A tax
adviser can give you the best advice on maintaining your offshore accounts so you are following
the law. You will most likely need expatriate status for this. Under most circumstances, it is not
legal for a U.S. citizen to open an offshore account. Most of the banks are not reporting the
income; therefore, it is up to you to maintain records and do the proper reporting. If you do not
and are caught, you can be convicted of tax evasion. Many people who want to maintain legality
will open a business account abroad and then open an offshore bank account.

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When your money goes abroad, you are losing federal protection of the Federal Deposit
Insurance Corporation. Be sure you are dealing with a large institution such as HSBC, which is
probably the world's largest international bank.

Countries that offer a sense of privacy when opening an account include Switzerland, Bermuda,
the Bahamas and the Caymans. Swiss banks accounts are known for privacy and protection.
The Bahamas are compliant with international banking laws and have strong privacy laws. You
can open a Bermuda account through the mail with proper identification supplied. The Caymans
are very popular because the banking system is similar to the U.S. and does not report accounts
or interest.

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5.4 ANNEXURE

QUESTIONNAIRE

1. Gender
Male
Female

2. Age
20 to 30
30 to 40
40 to 50

3. Work Experience
Fresher
2 to 3 years
3 to 5 years

4. Do you know about third party product in banking sector?

Yes
No
May be

5. Have you ever invested into third party product of banking sector?
Yes
No
May be

6. Which sector of banking you think excel in third party product?

Private
Public

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1. Name :

2. Age
18-25
25-35
35-45
45 Above

3. Profession
Student
Business
Unemployed
Employed

4. Annual Income
1-3 lacs
3-5 lacs
5-7 lacs
Other :

5. Do you know what is offshore banking?

Yes
No
Maybe

6. Have you ever invested in offshore banking?

Yes
No
Maybe

7. What are the features you like the most about offshore banking?
Better asset

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Greater privacy and anonymity

More diversification and less vulnerable
Tax incentives

8. Something you dislike about Offshore Banking?

High Additional Cost
Location problem
Outdated public perception
Fraudulent practice

9. Would you ever suggest anyone to invest in offshore banking?

Yes
No
Maybe

10. Do you find offshore banking a boon or a bane for development?

Boon
Bane

11. According to you, do you think India should have more offshore banks across the
world?
Yes
No
Maybe

12. After the above questionnaire, what do you think about offshore banking? Has your
prospective changed about the same :

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WEBSITE
https://g.co/kgs/9G82En
https://www.snb.ch

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