India and Switzerland have signed a pact paving the way for unearthing black money stashed in the Swiss Banks.

The pact was signed by Indian Ambassador to Switzerland Chitra Narayanan and Swiss Department of Finance Secretary Michael Ambuhl.

The MoU was signed in the presence of President Pratibha Patil and her Swiss counterpart Micheline Calmi-Rey on Monday. It comes close on the heels of the signing of an amending protocol to the Double Taxation Avoidance Agreement.

Secretary West in the Ministry of External Affairs B B Harrison said that the MoU deals with creation of a useful forum for exchange of views on financial and macro-economic issues. It will facilitate dialogue between the tax authorities of the two countries.