Indian Funds in Swiss Banks Dip to ₹36,793 Crore Amid Rising Individual Deposits
Recent data from the Swiss National Bank (SNB) reveals a complex shift in how Indian capital is managed within Swiss financial institutions. While total funds linked to Indian clients saw an 8% decline in 2025, there has been a massive surge in direct customer deposits, signaling a change in how wealth is being structured.
The Decline in Institutional-Linked Funds
According to the annual report released by the SNB, total funds linked to Indian clients fell to 3.25 billion Swiss francs (approximately ₹36,793 crore) in 2025. This represents an 8% drop from the previous year, following a significant rebound in 2024 when funds had surged threefold to 3.5 billion Swiss francs.
The primary driver of this decline was the sharp contraction in funds held through banks and other financial institutions. These institutional assets stood at roughly 2.6 billion Swiss francs at the end of 2025, marking a nearly 15% decrease. Furthermore, assets held through fiduciaries and trusts plummeted by 55% to 18.6 million Swiss francs, while other liabilities, including bonds and securities, also saw a decline to 105.7 million Swiss francs.
A Surge in Direct Customer Deposits
Contrasting the overall downward trend, direct deposits held in individual and institutional customer accounts experienced a massive spike. These deposits climbed by more than 50% during the year, reaching 524 million Swiss francs (around ₹6,000 crore).
Despite this high growth rate, direct customer accounts currently represent only about 16% of the total Indian-linked assets in Switzerland. This suggests that while the volume of institutional routing is decreasing, high-net-worth individuals and specific institutional clients are increasingly choosing direct deposit routes. Interestingly, separate data from the Bank for International Settlements (BIS) supports this recovery trend, showing that deposits held by Indian individuals rose by 20% in 2025 to USD 89.73 million (approx. ₹780 crore).
Global Context and Regulatory Clarity
The SNB clarified that these figures represent the total liabilities of Swiss banks toward Indian clients, including deposits from companies, individuals, and banks, as well as non-deposit liabilities. The central bank emphasized that these numbers should not be used as a definitive measure of "black money," as the data excludes assets held through entities incorporated in third countries.
On a global scale, India improved its standing among fund-holding nations, moving up to 46th place from 48th the previous year. In comparison, while Pakistan’s funds declined to 257 million Swiss francs, Bangladesh saw a significant 43% increase to 842 million Swiss francs. Since 2018, Switzerland and India have maintained a tax transparency framework, ensuring the automatic exchange of financial account information to mitigate illicit wealth.
Key Takeaways
- Overall Decline: Total Indian-linked funds in Swiss banks fell by 8% to ₹36,793 crore in 2025, driven largely by a 15% drop in funds held through financial institutions.
- Direct Deposit Growth: Despite the overall dip, direct customer deposits saw a massive 50% increase, reaching approximately ₹6,000 crore.
- Transparency Standards: The data is subject to ongoing tax transparency frameworks between India and Switzerland, which have facilitated automatic information exchange since 2019.