Funds held by Indian individuals and firms in Swiss banks plummeted by 70% in 2023, reaching a four-year low of 1.04 billion Swiss Francs (Rs 9,771 crore), according to annual data from Switzerland's central bank. This marks the second consecutive year of decline, following a 14-year high of CHF 3.83 billion in 2021. The drop is primarily attributed to a significant reduction in funds held through bonds, securities, and other financial instruments.
The data also revealed a notable decrease in customer deposit accounts and funds held through other bank branches in India. These figures, reported by banks to the Swiss National Bank (SNB), do not account for alleged black money held by Indians in Switzerland or funds held under third-country entities.
At the end of 2023, the total liabilities of Swiss banks to Indian clients amounted to CHF 1,039.8 million. This included CHF 310 million in customer deposits, CHF 427 million held via other banks, CHF 10 million through fiduciaries or trusts, and CHF 302 million in bonds, securities, and other financial instruments.
Historically, the total amount of Indian funds in Swiss banks peaked at nearly 6.5 billion Swiss Francs in 2006. Despite some fluctuations, the trend has generally been downward since then, with notable declines in 2019 and surges in 2021.
The 'locational banking statistics' from the Bank for International Settlements (BIS), deemed more reliable for measuring Indian deposits in Swiss banks, showed a 25% decline in 2023 to USD 70.6 million (Rs 663 crore). This followed an 18% drop in 2022 and an 8% decline in 2021, after a 39% increase in 2020.
Swiss authorities emphasize that Indian residents' assets in Switzerland should not be considered 'black money'. Since 2018, an automatic exchange of financial information between Switzerland and India has been in place, with detailed account data shared annually with Indian tax authorities. Additionally, Switzerland has cooperated in sharing account details of Indians suspected of financial misconduct, with hundreds of cases exchanged so far.
In 2023, the overall funds of foreign clients in Swiss banks declined to CHF 983 billion from CHF 1.15 trillion in 2022. Indian clients' assets fell by 63% to CHF 1.46 million, the lowest in over two decades. India ranked 67th in foreign client funds in Swiss banks, down from 46th in 2022. In comparison, the UK led with CHF 254 billion, followed by the US and France. Neighboring countries Pakistan and Bangladesh also saw significant declines in their funds held in Swiss banks.
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