Indian holdings in Swiss banks tripled over three times in 2024 to 3.5 billion Swiss francs, or around ₹37,600 crore. The steep increase was mainly led by a jump in funds channeled through domestic branches of Swiss banks and other institutions, the Swiss National Bank (SNB)’s year-end data announced on Thursday said.

Customer Deposits Show Modest Rise

Even though the overall increase was recorded, individual customer deposits by Indian customers increased only by 11% and totaled 346 million Swiss francs (approximately ₹3,675 crore). This represented a mere tenth of Swiss banks’ total Indian-linked deposits.

A Rebound After 2023’s Sharp Decline

The dramatic rebound comes after a drastic 70% decline in 2023, when Indian-held balances in Swiss banks hit a four-year low of CHF 1.04 billion. The present figure is a 14-year high since 2021, when Indian money in Swiss accounts reached CHF 3.83 billion.

Breakdown of Swiss Bank Liabilities to Indian Clients

Total liabilities held by the SNB as of 2023 year-end amounting to Indian clients were CHF 3,545.54 million. These comprised:

CHF 346 million in customer deposits (up from CHF 310 million)
CHF 3.02 billion through other banks (up from CHF 427 million)
CHF 41 million via fiduciaries or trusts (up from CHF 10 million)
CHF 135 million under ‘other amounts’ such as bonds and securities (down from CHF 293 million)

Not a Measure of ‘Black Money’, Say Authorities

The SNB clarified that these official figures represent reported assets and liabilities and are not indicative of any unaccounted or alleged ‘black money’. They also exclude funds held in third-country entities, which might indirectly involve Indian nationals or firms.

Swiss officials reaffirmed their position: “Assets of Indian residents in Switzerland cannot be viewed as ‘black money’ and they actively assist India in its war against tax evasion and tax fraud.”

BIS Numbers Indicate Relatively Slow Growth in Private Accounts

Figures from Bank for International Settlements (BIS), regarded as more accurate for monitoring individual Indian deposits, indicated a 6% increase in 2024. The figure stood at USD 74.8 million (approximately ₹650 crore). This estimate encompasses both loans and deposits of Indian non-bank customers in Swiss banks.

Since the years, BIS data showed such holdings declining—by 25% in 2023, 18% in 2022, and 8% in 2021. The previous major growth was seen in 2020 when deposits went up by almost 39%. The high-point was seen in 2007 at more than USD 2.3 billion.

India-Switzerland Tax Info Exchange Remains Active

Since 2018, India and Switzerland have been running an automatic tax information exchange system. Thereunder, India received its first tranche of account information in 2019, with quarterly updates yearly.

The Swiss authorities further added: “Such exchange of information has occurred in hundreds of cases so far,” particularly where prima facie evidence of infamy was brought by Indian authorities.

India’s Rank Improves Among Global Swiss Bank Clients

India rose to 48th among nations that have money in Swiss banks from 67 in 2023. Still, that’s lower than its 46th rank in 2022.

Compared with this, the UK led the chart at CHF 222 billion, followed by the US (CHF 89 billion) and West Indies (CHF 68 billion). Other leading nations included Germany, France, Hong Kong, Luxembourg, Singapore, Guernsey, and the UAE.

Regional Comparison: Bangladesh Rises, Pakistan Falls

Bangladesh experienced a steep rise in Swiss-held funds to CHF 589 million (from CHF 18 million), while Pakistan’s deposits fell slightly to CHF 272 million (from CHF 286 million). As in India, political arguments regarding black money are still intense in both neighboring countries.