Incorrect, banks in other countries require this data solely because the US is the only country that taxes its citizens even outside its borders. Compliance with FATCA is the only reason why most banks literally have a checkbox in their application forms specifically to state that you do not hold US citizenship in any form. Some Swiss banks even outright forbid US clients. Dealing with FATCA is just another logistical nightmare for most banks.
Not just because of either - many countries tax and treat citizen/permanent resident accounts wildly differently than non-citizen and non permanent resident accounts.
India has a whole swath of different account types based on this criteria, with wildly different rules.
NRI accounts are different in that they're localized. You don't have UBS in Switzerland asking me if I'm an Indian citizen or resident, like they do for the US.
Sure, as it is in their purview within India. But does UBS or Santander ask their clients in Europe if they're specifically an Indian citizen or resident? Does RBS send a form to a prospective client asking them to explicitly check off if they're a citizen/resident of India or China or wherever?
My point is that the US gov’t asking US banks to verify citizenship/residency of account holders in the US is not that unusual, if looking at the norm internationally. What is your point?
my bank specifically asked me a bunch of questions that they claimed they needed to send to the US. it wasn't just a checkbox that i am not a citizen. it's more complicated than that. non-citizens could have tax obligations to the US if they work there or work for a US company.
They don't need to send your data if you're not working for a US company, or if you're not a US resident/citizen. That is, sending data to the US is not the default. Also yes, the checkbox wasn't just a single box but an entire page just dedicated to FATCA issues i.e. the banks are doing as much as possible to absolve themselves of any FATCA obligations and document it.
Anything remotely connecting a client to the US is kryptonite to banks.