Indian Funds in Swiss Banks Triple in 2024, Reach ₹37,600 Crore: What’s Behind the Surge?

Indian Funds in Swiss Banks

In a surprising development, Indian money parked in Swiss banks tripled in 2024, reaching a staggering 3.5 billion Swiss francs (CHF) — approximately ₹37,600 crore, according to data released by the Swiss National Bank (SNB). The increase marks a sharp rebound following a steep 70% decline in 2023 and places India 48th globally in terms of foreign client funds held in Swiss institutions.

What Drove the Surge in Indian Deposits?

The dramatic rise in Indian money in Swiss banks is largely attributed to funds held via local branches and financial institutions, not individual or corporate customer deposits. Here's a breakdown:

Type of Fund	2024 Amount (CHF)	2023 Amount (CHF)
Customer Deposits	346 million	310 million
Via Other Banks	3.02 billion	427 million
Fiduciaries / Trusts	41 million	10 million
Bonds / Securities and Other Instruments	135 million	293 million

Total liabilities of Swiss banks towards Indian clients amounted to CHF 3.54 billion, marking the highest level since 2021, when deposits had peaked at CHF 3.83 billion.

Not 'Black Money,' Says Switzerland

Swiss authorities have reiterated that these figures do not automatically imply black money. The automatic information exchange agreement between India and Switzerland, active since 2018, ensures annual sharing of account details of Indian residents. Additionally, Swiss authorities have provided information in hundreds of specific cases where India submitted evidence of financial wrongdoing.

Global Comparison: India Climbs to 48th

In terms of total foreign funds in Swiss banks (CHF 977 billion in 2024), India’s share remains modest. However, India climbed up the rankings:

• 2023: 67th

• 2022: 46th

• 2024: 48th

Top countries holding the most funds in Swiss banks:

1. United Kingdom – CHF 222 billion

2. United States – CHF 89 billion

3. West Indies – CHF 68 billion

4. Germany, France, Hong Kong, Singapore, and others follow

Notably, Pakistan’s funds dropped slightly to CHF 272 million, while Bangladesh saw a surge from CHF 18 million to CHF 589 million.

BIS Report: Individual Deposits Remain Modest

According to the Bank for International Settlements (BIS), which tracks individual deposits more accurately, Indian funds in Swiss banks rose 6% in 2024 to $74.8 million (₹650 crore).

Trend Over the Years (BIS Data):

• 2023: -25%

• 2022: -18%

• 2021: -8%

• 2020: +39%

• 2007 Peak: $2.3 billion

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Political and Economic Implications

The spike in Indian money in Swiss banks is likely to reignite debates about black money, tax evasion, and financial transparency. While much of the surge stems from institutional activity, the timing—especially ahead of major Indian elections and increased scrutiny on financial irregularities—adds a layer of political sensitivity.

Final Thoughts

While the dramatic increase in Swiss bank holdings by Indian clients reflects a resurgence in institutional investments and offshore banking, it also underscores the need for continued vigilance and transparency in global financial flows. The government's efforts to curb tax evasion through international cooperation and stringent regulations appear to be yielding results, even as new challenges emerge.