Indian money in Swiss banks triples in 2024, reaches nearly ₹37,600 cr

Indian money parked in Swiss banks tripled in 2024 to CHF 3.5 billion, mainly via financial institutions; however, customer deposits rose modestly even as India climbed to 48th in global rankings

Indian money in Swiss banks jumped more than threefold in 2024 to 3.5 billion Swiss francs (CHF), or approximately ₹37,600 crore, according to annual figures released by the Swiss National Bank (SNB) on Thursday. The sharp increase was mainly due to a significant surge in funds held through local branches and other financial institutions, according to a PTI report.

 

However, funds in customer deposit accounts of Indian clients rose a modest 11 per cent, reaching CHF 346 million (around ₹3,675 crore), making up just one-tenth of total Indian money parked in Swiss banks.

 

This rise comes after a steep 70 per cent fall in Indian-deposited funds in Swiss banks in 2023, which had dropped to a four-year low of CHF 1.04 billion. The current figures are the highest since 2021, when the total had touched a 14-year peak of CHF 3.83 billion.

 

The total of CHF 3,545.54 million, categorised by the SNB as the ‘total liabilities’ of Swiss banks towards Indian clients at the end of 2023, includes:

 

• CHF 346 million in customer deposits (up from CHF 310 million)
• CHF 3.02 billion held through other banks (up from CHF 427 million)
• CHF 41 million through fiduciaries or trusts (up from CHF 10 million)
• CHF 135 million in other financial instruments such as bonds and securities (down from CHF 293 million)

 

These figures are based on official data reported by banks to the SNB. However, they do not reflect the amount of so-called black money and exclude funds held through third-country entities.

 

The highest-ever amount stood at nearly CHF 6.5 billion in 2006. Since then, the figures have generally trended downwards, with a few exceptions in years like 2011, 2013, 2017, 2020, 2021, 2022 and 2023.

 

According to the SNB, the data includes all forms of funds from Indian clients, including individuals, enterprises and banks, along with figures from Swiss bank branches in India and non-deposit liabilities.

 

In contrast, the Bank for International Settlements (BIS) reported a 6 per cent rise in Indian deposits in Swiss banks in 2024, taking the total to $74.8 million (about ₹650 crore). The BIS data is often considered more accurate for measuring individual deposits by Indian citizens.

 

Previously, such BIS-tracked funds fell by 25 per cent in 2023, 18 per cent in 2022 and 8 per cent in 2021. The last significant increase was in 2020, with a 39 per cent rise. In 2007, the amount had peaked at over $2.3 billion.

Switzerland's stand on 'black money'

Swiss authorities have repeatedly said that funds held by Indian residents in Switzerland should not be automatically viewed as black money. They have assured continued cooperation with India in tackling tax evasion and fraud.

 

An automatic information-sharing agreement on tax matters has been in place between the two countries since 2018. Under this, detailed account data of Indian residents with Swiss institutions is shared annually, starting from September 2019.

 

Switzerland has also shared specific account details in several cases where India has provided preliminary evidence of financial wrongdoing. Hundreds of such exchanges have already taken place.

India rises in global ranking

Foreign client funds in Swiss banks fell slightly to CHF 977 billion in 2024, from CHF 983 billion the previous year. However, Indian clients held assets worth CHF 1.59 billion at the end of 2023, about 9 per cent higher than the previous year. India moved up in the global rankings to 48th place, from 67th in 2023, though still slightly below its 46th position in 2022.

 

The UK led the list of countries with the highest foreign holdings in Swiss banks at CHF 222 billion, followed by the US (CHF 89 billion) and the West Indies (CHF 68 billion). Other top-ranking countries included Germany, France, Hong Kong, Luxembourg, Singapore, Guernsey and the UAE.

 

Pakistan's funds in Swiss banks declined to CHF 272 million from CHF 286 million, while Bangladesh saw a sharp surge, rising from CHF 18 million to CHF 589 million. As in India, discussions over alleged black money in Swiss banks remain politically sensitive in these countries.