The latest data from the Swiss National Bank (SNB), released on June 19, 2025, reveals a significant surge in Indian money parked in Swiss banks. Total funds have more than tripled, reaching 3.54 billion Swiss francs (approximately Rs 37,600 crore). This marks the highest level since 2021, when Indian money in Swiss banks had reached a 14-year peak of CHF 3.83 billion.
While the overall increase is substantial, a closer look reveals that the majority of this growth stems from funds held through bank channels and other financial entities, rather than individual customer accounts. Deposits directly from Indian clients saw a more modest rise, increasing by 11% to 346 million Swiss francs (around Rs 3,675 crore). These direct deposits constitute only about one-tenth of the total Indian-linked funds. The SNB data encompasses all liabilities of Swiss banks toward Indian clients, including funds held through other banks (CHF 3.02 billion), customer accounts, fiduciaries or trusts (CHF 41 million), and other financial instruments like bonds and securities (CHF 135 million).
In stark contrast to the current rise, 2023 witnessed a significant 70% drop in Indian funds in Swiss banks, hitting a four-year low of CHF 1.04 billion. The current rebound is therefore a noteworthy recovery, although still below the all-time high of CHF 6.5 billion recorded in 2006.
It's important to note that the SNB data is based on official reports submitted by the banks themselves. It does not provide details about alleged black money or accounts held through entities in other countries. Swiss authorities have consistently stated that these figures should not be automatically equated with illicit funds. They emphasize that assets held by Indian residents in Switzerland cannot be considered "black money." Switzerland has been actively supporting India in its efforts to combat tax fraud and evasion through the automatic exchange of information, which has been in force since 2018. Hundreds of cases have seen information shared with Indian authorities concerning accounts with suspected links to financial irregularities.
India's ranking globally in terms of funds in Swiss banks has improved, moving to 48th position from 67th the previous year. However, it remains below the 46th rank held at the end of 2022. Among neighboring countries, Pakistan saw a decrease in funds to CHF 272 million, while Bangladesh experienced a sharp rise to CHF 589 million.
Data from the Bank for International Settlements (BIS), which tracks deposits and loans of Indian non-bank clients with Swiss-domiciled banks, also indicates an increase. These funds rose by 6% in 2024 to USD 74.8 million (approximately Rs 650 crore). This follows three years of decline – 25% in 2023, 18% in 2022, and over 8% in 2021.
While Indian-linked money has increased substantially, the total foreign client funds in Swiss banks saw a slight decrease, falling to CHF 977 billion in 2024 from CHF 983 billion the previous year. The United Kingdom remains at the top of the list with CHF 222 billion, followed by the United States (CHF 89 billion) and the West Indies (CHF 68 billion).
The issue of Indians holding money in Swiss banks has often been linked to discussions about black money. However, it's crucial to recognize that Swiss banks also serve as a safe haven for legitimate wealth, particularly during times of political or economic instability in the account holder's home country. Switzerland's financial stability, trust laws, and investor privileges continue to attract legitimate investments.
