SNB report: Indian funds in Swiss banks triple to Rs 37,600 crore in 2024; individual deposits up only 11%

Indian money deposited in Swiss banks more than tripled in 2024, reaching nearly Rs 37,600 crore or 3.5 billion Swiss francs, according to data released by Switzerland’s central bank. The 2024 figure is the highest since 2021, when Indian money in Swiss banks had reached a 14-year peak of CHF 3.83 billion.This sharp jump, however, was not fuelled by individual deposits, but by a major rise in funds parked through local branches and financial institutions.Indian customer deposits, the more direct measure of individual client holdings, rose by only a modest 11% reaching Rs 3,675 crore or CHF 346 million, making up just a tenth of the overall Indian-linked funds.This is a turnaround from 2023, when Indian holdings had dropped to a four-year low of 1.04 billion francs, a 70% fall from the previous year, PTI reportedThese are official numbers reported by banks to the Swiss National Bank (SNB), but they do not reflect the amount of alleged black money linked to Indians in Switzerland. They also exclude any funds held by Indians, NRIs or others under the names of companies or entities based in third countries.The total amount of CHF 3,545.54 million, labelled by the Swiss National Bank (SNB) as the ‘total liabilities’ or amounts owed by Swiss banks to their Indian clients at the end of 2023, was made up of several components. CHF 346 million in customer deposits (up from CHF 310 million), CHF 3.02 billion held through other banks (a sharp rise from CHF 427 million), CHF 41 million via fiduciaries or trusts (up from CHF 10 million), and CHF 135 million classified as ‘other amounts’ such as bonds, securities, and various financial products (down from CHF 293 million). According to the bank, these cover all types of funds held by Indian clients in Swiss banks, including deposits made by individuals, companies, and other banks, as well as data from Swiss bank branches operating in India. It also considered non-deposit liabilities, such as investments and financial instruments owed to Indian customers.The highest ever amount held by Indians in Swiss banks was nearly CHF 6.5 billion in 2006. Since then, flows have declined, with brief spikes recorded in 2011, 2013, 2017, 2020, 2021, 2022, and now again in 2024.Swiss authorities have repeatedly distanced these figures from the politically sensitive issue of black money. “Assets held by Indian residents in Switzerland cannot be automatically labelled as black money,” the Swiss government has maintained. It has also stressed its cooperation with India to curb tax evasion.Under the automatic exchange of financial information agreement in force since 2018, India receives annual data on financial accounts held by its residents in Swiss banks. This includes account balances, interest income and ownership details, helping Indian tax authorities crack down on undisclosed assets.Additionally, Switzerland has been sharing information on Indian account holders suspected of financial wrongdoing, following requests supported by prima facie evidence. Hundreds of such exchanges have already taken place.Meanwhile, another set of figures, from the Bank for International Settlements (BIS), showed Indian individual deposits in Swiss-domiciled banks rose nearly 6% in 2024 to $74.8 million (Rs 650 crore). The BIS considers its ‘locational banking statistics’ a better indicator of direct deposits and loans by Indian clients. The BIS data had shown a consistent decline since 2020, until this year’s marginal rebound.In 2023, the figures declined by 25%, following an 18% drop in 2022 and a fall of over 8% in 2021. This came after a sharp rise of nearly 39% in 2020. This figure includes both deposits and loans held by Indian non-bank clients in Swiss-based banks. It had risen by 7% in 2019, after seeing a drop of 11% in 2018 and a much steeper 44% fall in 2017. It peaked over $2.3 billion at the end of 2007.Globally, foreign client funds in Swiss banks stood at CHF 977 billion in 2024, down slightly from CHF 983 billion in 2023. Indian clients accounted for CHF 1.59 billion in assets, a 9% rise.India climbed up the global rankings to 48th place among nations with client funds in Swiss banks, up from 67th in 2023.Neighbouring Pakistan saw a slight decline to CHF 272 million, while Bangladesh recorded a significant spike, with funds rising from CHF 18 million in 2023 to CHF 589 million in 2024.The UK topped the list of foreign clients in Swiss banks with CHF 222 billion, followed by the US (CHF 89 billion) and West Indies (CHF 68 billion).Swiss authorities have consistently stated that assets held by Indian residents in Switzerland should not automatically be seen as ‘black money’ and emphasised their active cooperation with India in tackling tax fraud and evasion.Additionally, Switzerland has been actively sharing details about accounts of Indians suspected to have indulged in financial wrongdoings after the submission of prima facie evidence. Such exchange of information has taken place in hundreds of cases so far.