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In 2016, India and Switzerland had signed an information-sharing deal on bank accounts, which was to come into effect from September 2019.

As per the agreement, Switzerland and India agreed to start collecting data in accordance with the global AEOI standard in 2018 and to exchange it from 2019 onwards.

  •  Common Reporting Standard(CRS) is the global reporting standard for such exchange of information, which takes care of aspects such as confidentiality rules and data safeguards.
  • The CRS has been developed by the Organisation for Economic Cooperation and Development (OECD).

What does this mean for India, and how will the exchange of information be governed?

  • This automatic exchange of information (AEOI) is to be carried out under the Common Reporting Standard (CRS)
  • CRS is the global reporting standard for such exchange of information, which takes care of aspects such as confidentiality rules and data safeguards.
  • The CRS has been developed by the Organisation for Economic Cooperation and Development (OECD).
  • Under the agreement, India will not receive information on bank accounts prior to 2018.

About OECD:

  • India recently became the signatory of the Multilateral Instrument (MLI). It is an agreement put out by OECD to prevent base erosion and profit shifting (BEPS).  It will help them crack down on abuse of bilateral tax treaties and treaty shopping.
  • The Organisation for Economic Co-operation and Development (OECD) is a group of 36 member countries that discuss and develop economic and social policy. 
  • OECD members are democratic countries that support free market economies. 
  • The OECD was established on Dec. 14, 1960, by 18 European nations plus the United States and Canada. 
  • It has expanded over time to include members from South America and the Asia-Pacific region. It includes most of the highly developed economies.

Organization for Economic Co-operation and Development (OECD) released a research analysis- The Long View: Scenarios for the World Economy to 2060.

  • World real GDP growth will decline from 3.5% in 2018 to 2% in 2060.
  • By 2060, India, China, and Indonesia combined will represent almost half of the world’s economic output.