Indian Funds in Swiss Banks Fall to ₹36,793 Crore Amidst Shift in Deposit Patterns
Recent data from the Swiss National Bank (SNB) reveals a complex shift in how Indian capital is being parked in Switzerland. While the total volume of funds linked to Indian clients saw an 8% decline in 2025, a significant surge in direct customer deposits suggests a change in how individuals and institutions are managing their offshore wealth.
Total Indian-Linked Assets See an 8% Decline
According to the latest annual report released by the Swiss National Bank, 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 notable rebound in 2024, when funds had surged threefold to 3.5 billion Swiss francs—the highest level since 2021.
The primary driver behind this year's decline was the reduction in funds held through other banks and financial institutions. These institutional holdings, which constitute the largest portion of Indian-linked assets in Switzerland, dropped by nearly 15% to reach roughly 2.6 billion Swiss francs. Other segments also saw significant retreats: assets held through fiduciaries and trusts plummeted by 55% to 18.6 million Swiss francs, while other liabilities such as bonds and securities fell to 105.7 million Swiss francs.
Direct Customer Deposits Surge by 50%
Despite the overall downward trend in total assets, there is a striking counter-trend in individual and institutional holdings. Funds held directly in customer accounts rose sharply by more than 50%, reaching 524 million Swiss francs (approximately ₹6,000 crore).
While this growth is substantial, these direct deposits represent only about 16% of the total Indian-linked amount in Swiss banks. This divergence suggests that while large-scale institutional routing through intermediary banks is decreasing, individual and direct institutional interest in Swiss banking remains robust. Furthermore, separate figures from the Bank for International Settlements (BIS) indicated that deposits held by Indian individuals rose 20% in 2025 to USD 89.73 million (about ₹780 crore).
Global Context and Regulatory Transparency
The SNB clarified that these figures represent the total liabilities of Swiss banks toward Indian clients—including deposits from companies, banks, and individuals—and should not be viewed as a definitive measure of "black money." Since 2018, Switzerland and India have engaged in the automatic exchange of financial account information to ensure tax transparency.
In the broader global landscape, India improved its ranking of fund holders in Switzerland, moving up to 46th place from 48th the previous year. In contrast, while Pakistan's funds declined to 257 million Swiss francs, Bangladesh saw a massive 43% increase, reaching 842 million Swiss francs. Globally, the United Kingdom remains the leading holder of funds in Swiss banks, with 192 billion Swiss francs.
Key Takeaways
- Overall Decline: Total Indian-linked assets in Swiss banks dropped by over 8% to ₹36,793 crore, primarily due to a 15% dip in funds held through financial institutions.
- Direct Deposit Growth: Despite the overall drop, direct customer deposits saw a massive 50% increase, reaching approximately ₹6,000 crore.
- Transparency Standards: The data excludes assets held through third-country entities and is subject to the ongoing automatic tax information exchange framework between India and Switzerland.