Indian Funds in Swiss Banks Dip to ₹36,793 Crore Despite 50% Surge in Customer Deposits

Recent data from the Swiss National Bank (SNB) reveals a complex shift in how Indian capital is parked in Switzerland. While the total value of funds linked to Indian clients saw an 8% decline in 2025, there is a significant internal pivot toward direct customer holdings.

The Paradox: Total Decline vs. Direct Deposit Growth

According to the latest annual data released by the Swiss National Bank, total funds linked to Indian clients fell by more than 8% in 2025, settling at 3.25 billion Swiss francs (approximately ₹36,793 crore). This follows a massive rebound in 2024, where funds had surged threefold to 3.5 billion Swiss francs.

However, a deeper look at the composition of these funds tells a different story. While the aggregate amount dropped, deposits held directly in individual and institutional customer accounts saw a massive spike of over 50%. These direct deposits climbed to 524 million Swiss francs (around ₹6,000 crore), although they still represent only about 16% of the total Indian-linked assets in the country.

Why the Overall Figures Dropped

The primary driver behind the 8% decline was the reduction in funds routed through banks and other financial institutions. These institutional holdings, which make up the lion's share of the total, stood at roughly 2.6 billion Swiss francs at the end of 2025—a nearly 15% decrease from the previous year.

Other segments also saw significant contraction:

  • Fiduciaries and Trusts: Assets held through these channels plummeted by 55% to 18.6 million Swiss francs.
  • Other Liabilities: Bonds, securities, and various financial instruments declined to 105.7 million Swiss francs.

The SNB has been careful to clarify that these figures do not serve as a direct measure of "black money." The data specifically represents the total liabilities of Swiss banks toward Indian clients, including deposits from companies, individuals, and banks, as well as funds held through Swiss bank branches operating within India. Furthermore, the figures exclude assets held through entities incorporated in third countries.

Since 2018, Switzerland and India have engaged in the automatic exchange of financial account information under a tax transparency framework. This ensures that much of the wealth held in these accounts is part of a documented, regulated financial ecosystem.

India’s Global Standing in Swiss Banking

Despite the dip in total volume, India improved its global standing among foreign clients, moving up from 48th to 46th place. For comparison, the United Kingdom remains the top holder of funds in Swiss banks with 192 billion Swiss francs. In the South Asian region, while Pakistan saw a decline to 257 million Swiss francs, Bangladesh experienced a sharp 43% increase to 842 million Swiss francs.

Key Takeaways

  • Shift in Holding Patterns: While total Indian-linked funds fell by 8% to ₹36,793 crore, direct customer deposits surged by over 50% to ₹6,000 crore.
  • Institutional Decline: The overall drop was primarily driven by a 15% decrease in funds held through banks and a 55% crash in assets held through fiduciaries and trusts.
  • Regulatory Transparency: The SNB emphasized that these figures do not equate to illicit wealth, especially given the ongoing automatic exchange of financial information between India and Switzerland.