Geneva: India and Switzerland have signed a memorandum of understanding (MoU) related to exchange of information on financial matters. The MOU was signed on Monday between President Pratibha Devisingh Patil and Swiss Federal President Micheline Calmy-Rey.

With the signing of the memorandum, the spread of financial information will gain momentum, and the queries related to bilateral financial relations and black money will be answered.

Under the memorandum for exchange of information, the Swiss government will send a letter to India on October 6 following which India will respond and start further proceedings.

The memorandum is seen as a relief to the Central government who had been in the dock for long for issues related to black money.

The Amending Protocol to the Double Taxation Avoidance Agreement signed in August 2010 would provide a framework for exchange of tax-related information of importance to either side, when it enters into force.

It is to be noted that the issue of black money has been the subject of dispute between India and Switzerland for the last few years. According to India media, billions of money has been illegally stashed away by Indians in Swiss banks.

“The MOU signed is to strengthen the mutual cooperation and relations between the two countries”, said Micheline Calmy-Rey.

On Tuesday, the Indian President will travel to the University of Lasen to sign the MoU for the establishment of the ‘Chair on Indian Studies’.