Indian Funds in Swiss Banks Fall 8% to Rs 36,793 Crore in 2025

Funds linked to Indian clients in Swiss banks declined by over 8% in 2025, amounting to 3.25 billion Swiss francs (approximately Rs 36,793 crore), according to annual data released by the Swiss National Bank (SNB). The decrease was primarily driven by a reduction in funds held through other banks and financial institutions, which continued to constitute the largest share of Indian-linked assets in Switzerland.

Despite the overall decline, deposits held directly in customer accounts witnessed a significant increase. Individual and institutional client funds rose by over 50% to 524 million Swiss francs (around Rs 6,000 crore). However, these direct deposits accounted for only about 16% of the total Indian-linked funds in Swiss banks.

The SNB data revealed that funds held through banks and other financial institutions dropped nearly 15% from the previous year, settling at approximately 2.6 billion Swiss francs by the end of 2025. Assets held via fiduciaries and trusts saw an even sharper decline, falling 55% to 18.6 million Swiss francs. Other liabilities, including bonds, securities, and financial instruments, also decreased to 105.7 million Swiss francs.

This decline follows a sharp rebound in 2024, when Indian-linked funds surged threefold to 3.5 billion Swiss francs—the highest level since 2021. The 2024 increase had been driven by a rise in funds routed through local branches and other financial institutions. The SNB clarified that its figures represent the total liabilities of Swiss banks towards Indian clients, encompassing deposits from individuals, companies, and banks, along with non-deposit liabilities.

The data also includes funds held through Swiss bank branches operating in India. However, the Swiss central bank stressed that these figures should not be interpreted as a measure of alleged black money held by Indians in Switzerland. Additionally, the data excludes assets held through entities incorporated in third countries.

Historically, Indian-linked funds in Swiss banks peaked at nearly 6.5 billion Swiss francs in 2006 before entering a largely downward trajectory, interrupted by occasional increases in recent years. Separate figures from the Bank for International Settlements (BIS), considered a more accurate indicator of deposits held by Indian individuals in Swiss banks, showed a different trend. Such deposits rose 20% in 2025 to USD 89.73 million (approximately Rs 780 crore), continuing a recovery observed over the past two years.

Swiss authorities have consistently maintained that money held by Indian residents in Swiss banks cannot automatically be classified as illicit wealth. Since 2018, Switzerland and India have been exchanging financial account information under a tax transparency framework, with annual data-sharing continuing since 2019.

On a broader scale, total funds belonging to foreign clients in Swiss banks fell nearly 8% in 2025 to 1.05 trillion Swiss francs. Among countries with the highest funds in Swiss banks, the United Kingdom ranked first with 192 billion Swiss francs, followed by the United States and France. India improved its position to 46th place, up from 48th the previous year.

In South Asia, Pakistan's funds in Swiss banks declined to 257 million Swiss francs from 272 million, while Bangladesh recorded a notable 43% increase to 842 million Swiss francs.