Swiss Bank Rush: Why Indians Are Still Moving Money Abroad Despite Crackdowns

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Indian funds in Swiss banks tripled in 2024, reviving black money debate despite Swiss officials denying all such money is illicit
The allure of Alpine banks continues. Indian money parked in Swiss banks more than tripled in 2024, rising to 3.5 billion Swiss francs (CHF)—approximately Rs 37,600 crore—according to the Swiss National Bank (SNB). This sharp rise is largely attributed to a surge in funds routed through local branches and other financial institutions. It marks the highest level since 2021, when Indian-linked funds had touched a 14-year high of CHF 3.83 billion.
While the overall amount rose significantly, money parked directly in customer accounts grew by only 11%, accounting for just one-tenth of the total. The rebound comes after a steep 70% decline in 2023, which saw Indian funds fall to a four-year low of CHF 1.04 billion.
According to SNB data, Indian clients' total funds of CHF 3,545.54 million are spread across various financial channels. Of this, CHF 3.02 billion was held through other banks, CHF 346 million in customer deposit accounts, CHF 41 million through fiduciaries or trusts, and CHF 135 million in bonds and securities. This increase propelled India to the 48th rank in terms of foreign client deposits in Swiss banks, up from 67th in 2023, though still slightly below its 46th rank in 2022.
Is All This Black Money?
Why Do the Wealthy Still Prefer Swiss Banks?
Swiss banks continue to attract high-net-worth individuals globally for reasons beyond secrecy. They offer safety during political or economic instability and access to exclusive investment opportunities. A Swiss account often serves as a ticket to elite investment pools with high entry barriers. Additionally, Switzerland's trust laws are among the most sophisticated globally, helping wealthy families pool and protect their assets through offshore structures. The Swiss franc's stability also shields wealth from currency volatility.
Swiss authorities have reinforced that Indian-held assets should not be automatically treated as black money, stating that Switzerland actively supports India in its fight against tax fraud and evasion.
India-Switzerland Information Sharing in Place
Since 2018, India has been receiving annual account information from Switzerland under the Automatic Exchange of Information (AEOI) framework. The first data exchange occurred in September 2019, and continues regularly, covering accounts with suspected links to financial irregularities. Swiss officials noted that hundreds of such information exchanges have taken place to date.
Global Context and Regional Trends
While Indian-linked funds rose sharply, total foreign client money in Swiss banks slightly declined to CHF 977 billion in 2024, down from CHF 983 billion in 2023. Indian clients held CHF 1.59 billion at the end of 2023, a 9% year-on-year increase.
Among neighbouring countries, Pakistan's deposits declined to CHF 272 million, while Bangladesh saw a steep rise to CHF 589 million. Similar to India, conversations around black money in Swiss accounts remain politically sensitive in both countries.

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