Indian Funds in Swiss Banks Surge to ₹37,600 Crore in 2024: A Sharp Rebound

Indian-linked assets in Swiss banks soared to CHF 3.54 billion (₹37,600 crore) in 2024, a threefold increase following a 70% drop in 2023. Most funds were routed through financial institutions, with individual deposits making up 10%. Switzerland clarified these funds are not automatically illicit and continues sharing financial data with India under an information exchange agreement. India ranked 48th globally, while neighboring countries showed mixed trends. The surge highlights evolving international banking dynamics and ongoing efforts to combat tax evasion.

Indian-linked assets in Swiss banks witnessed a dramatic surge in 2024, tripling to 3.54 billion Swiss francs (approximately ₹37,600 crore), according to data released by the Swiss National Bank (SNB) last Thursday. This marks the highest level since 2021 and represents a remarkable recovery from the significant dip observed a year prior.

Breakdown of the Rise in Indian Assets

The majority of this increase was attributed to funds routed through banking channels and other financial institutions, with a relatively modest rise in deposits directly from individual Indian customers. Personal account deposits grew by 11% to 346 million Swiss francs (around ₹3,675 crore), comprising merely 10% of the total Indian-linked funds in Swiss banks.

The total CHF 3.54 billion includes:

• CHF 3.02 billion held through other banks.

  
  

• CHF 346 million in individual customer accounts.

  
  

• CHF 41 million held via fiduciaries or trusts.

  
  

• CHF 135 million in other financial instruments, such as bonds and securities.

  
  

A Major Rebound After a Steep Decline

This sharp increase follows a 70% plunge in 2023, when Indian-linked funds hit a four-year low of CHF 1.04 billion. While the latest figures indicate a strong recovery, they remain well below the record high of CHF 6.5 billion reported in 2006.

Addressing Concerns About Black Money

Swiss authorities have consistently clarified that the SNB data does not distinguish between legitimate funds and alleged black money. They emphasize that assets held by Indian residents in Switzerland cannot automatically be classified as illicit.

"Switzerland actively supports India in its efforts to combat tax fraud and evasion," Swiss officials stated. Under an automatic exchange of information agreement signed in 2018, Switzerland has been sharing detailed financial information about Indian residents annually. The first exchange occurred in September 2019, and since then, hundreds of cases have been reviewed, including accounts suspected of financial irregularities.

India's Ranking and Regional Comparison

India climbed to 48th place globally in terms of funds held in Swiss banks, up from 67th in 2023. However, this remains slightly below its 46th rank from 2022. Comparatively, neighboring countries such as Pakistan and Bangladesh saw contrasting trends. Pakistan’s funds dropped to CHF 272 million, while Bangladesh experienced a sharp increase to CHF 589 million.

Globally, the United Kingdom led the rankings with CHF 222 billion in Swiss banks, followed by the United States (CHF 89 billion) and the West Indies (CHF 68 billion). Other top contributors included Germany, France, Hong Kong, Luxembourg, and Singapore.

Insights from the BIS Data

Data from the Bank for International Settlements (BIS), which tracks Indian non-bank deposits and loans in Swiss banks, also showed an uptick. Indian funds under this category increased by 6% in 2024 to USD 74.8 million (about ₹650 crore). This growth follows three consecutive years of decline — a 25% drop in 2023, an 18% fall in 2022, and an 8% reduction in 2021. At its peak in 2007, Indian deposits in Swiss banks exceeded USD 2.3 billion.

A Broader Perspective

While the rise in Indian-linked funds signals a rebound, it also reignites discussions on the implications of these holdings. Financial transparency, tax compliance, and the fight against black money remain critical priorities for both India and Switzerland. As the two nations continue their collaboration on financial oversight, the data underscores the evolving dynamics of international banking and the global flow of wealth.