Indian money in Swiss Banks rises threefold to 37,600 crores

Indian money in Swiss banks has surged more than threefold in 2024, reaching 3.5 billion Swiss francs (CHF), approximately ₹37,600 crore. This significant increase, revealed in the annual figures released by the Swiss National Bank (SNB) on Thursday, marks a substantial rebound after a sharp decline in the previous year.

The primary driver behind this sharp jump is a considerable surge in funds held through local branches and other financial institutions, rather than individual customer deposits. While the overall figure soared, funds in customer deposit accounts of Indian clients saw a more modest rise of 11 per cent, reaching CHF 346 million (around ₹3,675 crore). This means customer deposits now constitute only about one-tenth of the total Indian money held in Swiss banks.

This increase follows a steep 70 per cent fall in Indian-deposited funds in Swiss banks in 2023, when the total had dropped to a four-year low of CHF 1.04 billion. The current figures are the highest recorded since 2021, when the total had touched a 14-year peak of CHF 3.83 billion, indicating a volatile trend in Indian financial flows to Switzerland.

The SNB's classification of 'total liabilities' of Swiss banks towards Indian clients at the end of 2023, amounting to CHF 3,545.54 million, comprises several components. This includes CHF 346 million in customer deposits, a rise from CHF 310 million in the previous year. A significant portion, CHF 3.02 billion, is held through other banks, marking a substantial increase from CHF 427 million. Additionally, CHF 41 million is held through fiduciaries or trusts (up from CHF 10 million), while CHF 135 million is in other financial instruments like bonds and securities (down from CHF 293 million).

It is crucial to note that these figures are based on official data reported by banks to the SNB and do not reflect the amount of so-called "black money." Swiss authorities have consistently maintained that assets held by Indian residents in Switzerland cannot be automatically deemed illicit. They also actively support India's efforts against tax fraud and evasion, with an automatic exchange of information framework in force between the two countries since 2018.

Historically, the highest amount of Indian money in Swiss banks was nearly CHF 6.5 billion in 2006. Since then, the figures have generally shown a downward trend, with notable exceptions in years like 2011, 2013, 2017, 2020, 2021, 2022, and now 2024. The SNB's data encompasses all forms of funds from Indian clients, including individuals, enterprises, and banks, as well as figures from Swiss bank branches in India and non-deposit liabilities, offering a comprehensive but not exhaustive view of Indian funds.