Indian Wealth in Swiss Banks Soars: Threefold Increase Amidst Modest 11% Rise in Customer Deposits

New Delhi/Zurich: In 2024, Indian money stored in Swiss banks surged to 3.5 billion Swiss francs, roughly Rs 37,600 crore. This figure marks a remarkable increase from the previous year, driven largely by a rise in funds held through local branches and financial institutions, according to the Swiss National Bank (SNB).

Despite this overall growth, the amount in Indian customer accounts saw a modest rise of just 11%, reaching 346 million Swiss francs (around Rs 3,675 crore) and accounting for only about 10% of the total funds.

Interestingly, this spike follows a 70% drop in Indian funds held in Swiss banks in 2023, which fell to a four-year low of 1.04 billion Swiss francs. Prior to this swing, the last peak was in 2021, when Indian money in Swiss banks hit a 14-year high at 3.83 billion francs.

It’s important to note that these figures don’t reflect the much-discussed black money allegedly held by Indians in Switzerland. Money possibly stored under third-party entities isn’t included either, leaving some questions unanswered about the true extent of Indian wealth in Swiss banks.

The total amount of 3.5 billion francs encompasses various types of funds: 346 million in customer deposits, 3.02 billion held through other banks, and smaller amounts through trusts and other financial instruments. The highest recorded amount was nearly 6.5 billion Swiss francs in 2006, after which it mostly declined.

According to SNB, the total liabilities of Swiss banks also cover deposits from individuals and firms, including branches in India. A different measure, the Bank for International Settlement (BIS), reported a 6% growth in Indian deposits in 2024, totaling USD 74.8 million (approximately Rs 650 crore). This contrasts with previous years when deposits dropped, highlighting a complex pattern over the past decade.

Swiss authorities assert that assets held by Indian nationals can’t simply be categorized as black money. They have supported India in tackling tax fraud since 2018 by sharing detailed account information with Indian tax authorities. This mutual cooperation extends to cases of suspected financial misconduct, where details have been exchanged based on preliminary evidence.

Looking at broader trends, foreign client funds in Swiss banks decreased to CHF 977 billion in 2024, down from CHF 983 billion in 2023. Notably, Indian clients’ assets grew to CHF 1.59 billion, an increase of about 9% from the previous year. Comparatively, the UK remains the leader in foreign funds in Swiss banks, followed by the US and the West Indies.

India now ranks 48th for foreign client money in Switzerland, a notable improvement from 67th in 2023, although it’s still lower than its position in previous years. Meanwhile, neighboring countries like Pakistan and Bangladesh have experienced fluctuating trends in their Swiss banking figures, reflecting broader regional economic narratives.

Understanding these developments provides valuable insights into global financial trends and the ongoing dialogue regarding transparency and regulation in international banking.

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