Indian deposits in Swiss banks fall 18% over 10 years, shows SNB data

Indian deposits in Swiss banks fell 18 per cent over the last decade, but 2024 saw a sharp rebound, with total funds surging over threefold to 3.5 billion Swiss francs, SNB data shows

Deposits held by Indian nationals in Swiss banks have declined by nearly 18 per cent over the past decade, according to the latest data released by the Swiss National Bank (SNB). The total value of funds fell from around 425 million Swiss francs in 2015 to approximately 346 million Swiss francs in 2024, news agency ANI reported. 

The SNB data showed that Indian deposits surged during the Covid-19 pandemic, touching a 10-year high of about 602 million Swiss francs. However, this uptick proved temporary, with balances beginning to decline in the years following the pandemic.

In 2023, Indian deposits stood at 309 million Swiss francs. They rose by 37 million francs in 2024, reaching 346 million francs. Despite this year-on-year increase, the broader decade-long trend remains one of steady decline.

 

 

Deposits dipped over decade, surged in 2024

Interestingly, while deposits held directly by Indian individuals have seen a long-term decline, the total Indian funds in Swiss banks rose sharply in 2024, driven by other channels.   

 

  The amount of Indian money held in Swiss banks surged over threefold in 2024, reaching 3.5 billion Swiss francs (CHF), which is approximately ₹37,600 crore, according to the annual data released by the SNB on Thursday. As reported by PTI, the spike is largely attributed to a increase in funds parked via local bank branches and other financial institutions. 

While the overall numbers saw a dramatic rise, customer deposit accounts showed only modest growth. Deposits held directly by Indian clients increased by 11 per cent, totalling CHF 346 million (around ₹3,675 crore), and accounted for only about one-tenth of the total Indian funds in Swiss banks. 

This rebound follows a major dip in 2023, when Indian deposits fell sharply by 70 per cent to a four-year low of CHF 1.04 billion. The latest figures mark the highest level since 2021, when deposits had peaked at a 14-year high of CHF 3.83 billion.

According to the Swiss National Bank (SNB), the total liabilities of Swiss banks towards Indian clients as of the end of 2023 stood at CHF 3,545.54 million. The data is based on information provided by Swiss banks to the SNB. It does not account for alleged black money or funds routed through entities based in third countries.

 

Global trend: Decline in Swiss bank deposits

India is not alone in witnessing the drop in Swiss bank deposits in the last one decade. The data reveals similar trends across several major economies. Deposits by UK nationals, for instance, declined from 44 billion Swiss francs in 2015 to 31 billion francs in 2024. Chinese deposits also fell, from 5.01 billion to 4.3 billion Swiss francs over the same period. 

Neighbouring countries of India have also recorded sharp reductions. Pakistani deposits shrank from 947 million Swiss francs in 2015 to 241 million in 2024 — a fall of nearly 75 per cent. Bangladeshi nationals saw a comparable drop, with their deposits declining from 48 million to just 12.6 million Swiss francs, a plunge of more than 73 per cent.

 

Regulatory tightening likely behind global decline

The sharp drop in deposits across multiple countries points to a broader shift in global financial behaviour. Analysts attribute the decline to “tightening regulations, increased scrutiny, and changes in international financial transparency norms”, ANI reported.

Saudi Arabian deposits almost halved over the decade, dropping from 8.3 billion Swiss francs in 2015 to 4.8 billion in 2024. 

The most significant drop was seen among American nationals. Their deposits plunged from 64.2 billion Swiss francs to 24.4 billion francs between 2015 and 2024 — a steep 62 per cent fall.

 

Greater scrutiny reshaping offshore banking

The SNB figures reflect a growing trend of reduced reliance on Swiss bank accounts by foreign nationals. This shift is likely being driven by global efforts to improve financial transparency and curb tax evasion. 

For India, while a temporary surge in deposits occurred during the pandemic, the broader picture is one of a steady decline in funds held by its citizens in Swiss financial institutions.

 

(With agency inputs)