Indian funds in Swiss banks triple to £3.1bn in 2024

INDIAN money in Swiss banks more than trebled in 2024 to 3.5 billion Swiss francs (£3.1bn), attributed to a rise in funds held through local branches and other financial institutions, annual data released by Switzerland's central bank showed on Thursday (19).

However, funds held in customer accounts by Indian clients rose by 11 per cent in the year to 346 million Swiss francs (£3.14m) and accounted for about one-tenth of overall funds, the report showed.

The increase in the overall funds follows a 70 per cent decline in funds by Indian individuals and firms in Swiss banks, including through local branches and other financial institutions, in 2023 to a four-year low of 1.04 billion Swiss francs.

This is the highest since 2021, when the total Indian money in Swiss banks hit a 14-year high of CHF 3.83 billion.

These are official figures reported by banks to the Swiss National Bank (SNB) and do not include money that Indians, non-resident Indians or others might have in Swiss banks in the names of third-country entities.

According to the SNB, its data for 'total liabilities' of Swiss banks towards Indian clients takes into account all types of funds of Indian customers at Swiss banks, including deposits from individuals, banks and enterprises. This includes data for branches of Swiss banks in India, as also non-deposit liabilities.

The total amount of CHF 3,545.54 million, described by the SNB as 'total liabilities' of Swiss banks or 'amounts due to' their Indian clients at the end of 2023, included
• CHF 346 million in customer deposits (up from CHF 310 million at 2023-end),
• CHF 3.02 billion held via other banks (up from CHF 427 million),
• CHF 41 million (up from CHF 10 million) through fiduciaries or trusts, and
• CHF 135 million as 'other amounts' due to customers in form of bonds, securities and various other financial instruments (down from CHF 293 million).

The total amount stood at a record high of nearly 6.5 billion Swiss francs in 2006.

However, the 'locational banking statistics' of the Bank for International Settlement (BIS), described in the past by Indian and Swiss authorities as a more reliable measure for deposits by Indian individuals in Swiss banks, showed an increase of nearly six per cent during 2024 in such funds to $74.8m (£55.7m).

An exchange of information in tax matters between Switzerland and India has been in force since 2018. Under this framework, detailed financial information on all Indian residents having accounts with Swiss financial institutions since 2018 was provided for the first time to Indian tax authorities in September 2019 and this is being followed every year.

Swiss authorities have maintained that assets held by Indian residents in Switzerland cannot be considered as 'black money' and they actively support India in its fight against tax fraud and evasion.

The UK topped the charts for money deposited by foreign clients in Swiss banks at CHF 222 billion, followed by the US (CHF 89 billion) and West Indies (CHF 68 billion).

Germany, France, Hong Kong, Luxembourg, Singapore, Guernsey and the UAE completed the top ten countries.

India was in 48th place, up from 67th at the end of 2023, but below 46th place at the end of 2022.

Pakistan also saw a dip to CHF 272 million (from CHF 286 million), while Bangladesh witnessed a sharp increase from CHF 18 million to CHF 589 million.

(With inpust from agencies)