The Alpine banks have not lost their charm. Indian money parked in Swiss banks more than tripled in 2024, reaching 3.54 billion Swiss francs (around Rs 37,600 crore), the Swiss National Bank (SNB) revealed on June 19. This is the highest level since 2021.
Most of the increase came from funds held through bank channels and other financial entities, not individual customer accounts, news agency PTI said in a report. Deposits directly from Indian customers rose modestly — up 11% to 346 million Swiss francs (about Rs 3,675 crore). These deposits make up just one-tenth of the total Indian-linked funds.
According to the SNB, the total CHF 3,545.54 million reflects all liabilities of Swiss banks toward Indian clients. This includes CHF 3.02 billion held through other banks, CHF 346 million in customer accounts, CHF 41 million via fiduciaries or trusts, and CHF 135 million in other instruments like bonds and securities.
ALSO READ: Indian money in Swiss banks jumps more than three times in 2024, hits Rs 37,600 crore, data shows
In contrast, these funds had dropped by 70% in 2023, hitting a four-year low of CHF 1.04 billion. The latest rise is therefore seen as a significant rebound, though still short of the all-time high of CHF 6.5 billion in 2006.
The SNB data is based on official reports by banks and does not reveal details about alleged black money or accounts held through entities in other countries. Swiss officials have repeatedly said these funds cannot automatically be labelled illicit.
It isn’t just black money
The issue of alleged “black money” held by Indians in Swiss banks has been a recurring topic in Indian politics, with political parties and leaders frequently pledging to “bring it back.”
But Swiss banks aren’t just about the black money buzz — there’s a bigger story behind the vaults. There is an element of truth in Arun Jaitley's words that “not all Swiss bank money is dirty”.
For the wealthy, Swiss banks serve as a safe haven during political unrest or currency crises in their home countries.
Swiss account is a ticket to the rich man’s club that has its privileges — such as, access to investment opportunities where the entry level is higher for investors outside the club.
A relatively stable currency shields the money from wild swings in the foreign exchange market. Trust laws in Switzerland are probably the best to pool and ring-fence family wealth — through offshore trust in which family members spread across the globe are named beneficiaries.
“Assets held by Indian residents in Switzerland cannot be considered as 'black money',” Swiss authorities have stated. “Switzerland actively supports India in its fight against tax fraud and evasion.”
Data sharing between India & Switzerland
The landlocked Alpine country has now been sharing annual financial details of Indian residents since 2018 under an automatic exchange of information agreement. The first data transfer to Indian authorities took place in September 2019. Since then, regular information sharing has continued, including on accounts with suspected links to financial irregularities.
“Such exchange of information has taken place in hundreds of cases so far,” according to Swiss officials.
While Indian-linked money rose sharply, total foreign client funds in Swiss banks fell slightly to CHF 977 billion in 2024 from CHF 983 billion a year earlier. Indian clients held CHF 1.59 billion in assets by the end of 2023 — an increase of 9% year-on-year.
India rose to the 48th spot globally in terms of funds in Swiss banks, up from 67th last year. However, this is still below the 46th rank it held at the end of 2022.
Among neighbouring countries, Pakistan saw a dip to CHF 272 million, while Bangladesh’s funds rose sharply to CHF 589 million. Like in India, discussions around black money in Swiss accounts are sensitive topics in both countries.
Most of the increase came from funds held through bank channels and other financial entities, not individual customer accounts, news agency PTI said in a report. Deposits directly from Indian customers rose modestly — up 11% to 346 million Swiss francs (about Rs 3,675 crore). These deposits make up just one-tenth of the total Indian-linked funds.
According to the SNB, the total CHF 3,545.54 million reflects all liabilities of Swiss banks toward Indian clients. This includes CHF 3.02 billion held through other banks, CHF 346 million in customer accounts, CHF 41 million via fiduciaries or trusts, and CHF 135 million in other instruments like bonds and securities.
ALSO READ: Indian money in Swiss banks jumps more than three times in 2024, hits Rs 37,600 crore, data shows
In contrast, these funds had dropped by 70% in 2023, hitting a four-year low of CHF 1.04 billion. The latest rise is therefore seen as a significant rebound, though still short of the all-time high of CHF 6.5 billion in 2006.
The SNB data is based on official reports by banks and does not reveal details about alleged black money or accounts held through entities in other countries. Swiss officials have repeatedly said these funds cannot automatically be labelled illicit.
It isn’t just black money
The issue of alleged “black money” held by Indians in Swiss banks has been a recurring topic in Indian politics, with political parties and leaders frequently pledging to “bring it back.”
But Swiss banks aren’t just about the black money buzz — there’s a bigger story behind the vaults. There is an element of truth in Arun Jaitley's words that “not all Swiss bank money is dirty”.
For the wealthy, Swiss banks serve as a safe haven during political unrest or currency crises in their home countries.
Swiss account is a ticket to the rich man’s club that has its privileges — such as, access to investment opportunities where the entry level is higher for investors outside the club.
A relatively stable currency shields the money from wild swings in the foreign exchange market. Trust laws in Switzerland are probably the best to pool and ring-fence family wealth — through offshore trust in which family members spread across the globe are named beneficiaries.
“Assets held by Indian residents in Switzerland cannot be considered as 'black money',” Swiss authorities have stated. “Switzerland actively supports India in its fight against tax fraud and evasion.”
Data sharing between India & Switzerland
The landlocked Alpine country has now been sharing annual financial details of Indian residents since 2018 under an automatic exchange of information agreement. The first data transfer to Indian authorities took place in September 2019. Since then, regular information sharing has continued, including on accounts with suspected links to financial irregularities.
“Such exchange of information has taken place in hundreds of cases so far,” according to Swiss officials.
While Indian-linked money rose sharply, total foreign client funds in Swiss banks fell slightly to CHF 977 billion in 2024 from CHF 983 billion a year earlier. Indian clients held CHF 1.59 billion in assets by the end of 2023 — an increase of 9% year-on-year.
India rose to the 48th spot globally in terms of funds in Swiss banks, up from 67th last year. However, this is still below the 46th rank it held at the end of 2022.
Among neighbouring countries, Pakistan saw a dip to CHF 272 million, while Bangladesh’s funds rose sharply to CHF 589 million. Like in India, discussions around black money in Swiss accounts are sensitive topics in both countries.
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