Indian Funds in Swiss Banks Dip to ₹36,793 Crore Amid Rising Private Deposits
Recent data from the Swiss National Bank (SNB) reveals a complex shift in how Indian capital is stored in Switzerland. While the total volume of Indian-linked assets saw an 8% decline in 2025, there is a significant surge in direct customer holdings, signaling a change in how Indian entities and individuals engage with Swiss financial institutions.
The Decline in Total Indian-Linked Assets
According to the latest annual report released by the SNB, funds linked to Indian clients fell by more than 8% in 2025, settling at 3.25 billion Swiss francs (approximately ₹36,793 crore). This contraction follows a period of high volatility; in 2024, Indian-linked funds had actually surged threefold to 3.5 billion Swiss francs, marking the highest level since 2021.
The downward trend in 2025 was primarily driven by a substantial reduction in funds held through intermediary banks and financial institutions. These institutional holdings stood at roughly 2.6 billion Swiss francs by the end of the year, representing a nearly 15% decrease compared to the previous period. Furthermore, assets held through fiduciaries and trusts saw a drastic 55% plunge to 18.6 million Swiss francs.
A 50% Surge in Direct Customer Deposits
Despite the overall decline in total assets, a standout figure in the report is the massive growth in direct customer accounts. Funds belonging to individual and institutional clients rose by more than 50% to reach 524 million Swiss francs (around ₹6,000 crore).
While this direct deposit segment represents only about 16% of the total Indian-linked assets in Switzerland, the sharp upward trajectory suggests that Indian investors are increasingly choosing direct banking relationships over third-party financial institutions or trusts. This trend is mirrored in separate data from the Bank for International Settlements (BIS), which showed that deposits held by Indian individuals rose by 20% in 2025 to reach USD 89.73 million (roughly ₹780 crore).
Understanding the Context of Swiss-Indian Wealth
It is critical to note that the SNB emphasizes these figures do not serve as a direct measure of "black money." The data accounts for total liabilities of Swiss banks toward Indian clients, including deposits from companies and banks, as well as non-deposit liabilities like bonds and securities. Additionally, the figures exclude assets held through entities incorporated in third countries.
Since 2018, Switzerland and India have maintained a robust tax transparency framework, facilitating the automatic exchange of financial account information. This ongoing cooperation ensures that the movement of wealth is increasingly visible to regulatory authorities in both nations.
Global Context and Regional Comparisons
On the global stage, India improved its ranking of countries with funds in Swiss banks, moving up to 46th place from 48th the previous year. In contrast, the United Kingdom remains the dominant holder with 192 billion Swiss francs.
Looking at South Asian neighbors, the trends were mixed. While Pakistan’s funds in Swiss banks declined to 257 million Swiss francs, Bangladesh saw a massive 43% increase, with its holdings reaching 842 million Swiss francs.
Key Takeaways
- Overall Decline: Total Indian-linked funds in Swiss banks dropped 8% to ₹36,793 crore in 2025, largely due to a 15% dip in institutional holdings.
- Direct Deposit Growth: Despite the total drop, direct customer deposits saw a significant 50% increase, reaching approximately ₹6,000 crore.
- Regulatory Transparency: The data is subject to ongoing automatic information exchange between India and Switzerland, helping distinguish legitimate wealth from illicit assets.