Indian deposits in Swiss banks fall 18% over 10 years, shows SNB data

Deposits held by Indian nationals in Swiss banks have declined by nearly 18 per cent over the past decade, according to the latest data released by the Swiss National Bank (SNB). The total value of funds fell from around 425 million Swiss francs in 2015 to approximately 346 million Swiss francs in 2024, news agency ANI reported.
The SNB data showed that Indian deposits surged during the Covid-19 pandemic, touching a 10-year high of about 602 million Swiss francs. However, this uptick proved temporary, with balances beginning to decline in the years following the pandemic.
In 2023, Indian deposits stood at 309 million Swiss francs. They rose by 37 million francs in 2024, reaching 346 million francs. Despite this year-on-year increase, the broader decade-long trend remains one of steady decline.
Deposits dipped over decade, surged in 2024
The amount of Indian money held in Swiss banks surged over threefold in 2024, reaching 3.5 billion Swiss francs (CHF), which is approximately ₹37,600 crore, according to the annual data released by the SNB on Thursday. As reported by PTI, the spike is largely attributed to a increase in funds parked via local bank branches and other financial institutions.
While the overall numbers saw a dramatic rise, customer deposit accounts showed only modest growth. Deposits held directly by Indian clients increased by 11 per cent, totalling CHF 346 million (around ₹3,675 crore), and accounted for only about one-tenth of the total Indian funds in Swiss banks.
This rebound follows a major dip in 2023, when Indian deposits fell sharply by 70 per cent to a four-year low of CHF 1.04 billion. The latest figures mark the highest level since 2021, when deposits had peaked at a 14-year high of CHF 3.83 billion.
According to the Swiss National Bank (SNB), the total liabilities of Swiss banks towards Indian clients as of the end of 2023 stood at CHF 3,545.54 million. The data is based on information provided by Swiss banks to the SNB. It does not account for alleged black money or funds routed through entities based in third countries.
Global trend: Decline in Swiss bank deposits
India is not alone in witnessing the drop in Swiss bank deposits in the last one decade. The data reveals similar trends across several major economies. Deposits by UK nationals, for instance, declined from 44 billion Swiss francs in 2015 to 31 billion francs in 2024. Chinese deposits also fell, from 5.01 billion to 4.3 billion Swiss francs over the same period.
Neighbouring countries of India have also recorded sharp reductions. Pakistani deposits shrank from 947 million Swiss francs in 2015 to 241 million in 2024 — a fall of nearly 75 per cent. Bangladeshi nationals saw a comparable drop, with their deposits declining from 48 million to just 12.6 million Swiss francs, a plunge of more than 73 per cent.
Regulatory tightening likely behind global decline
The sharp drop in deposits across multiple countries points to a broader shift in global financial behaviour. Analysts attribute the decline to 'tightening regulations, increased scrutiny, and changes in international financial transparency norms', ANI reported.
Saudi Arabian deposits almost halved over the decade, dropping from 8.3 billion Swiss francs in 2015 to 4.8 billion in 2024.
The most significant drop was seen among American nationals. Their deposits plunged from 64.2 billion Swiss francs to 24.4 billion francs between 2015 and 2024 — a steep 62 per cent fall.
Greater scrutiny reshaping offshore banking
The SNB figures reflect a growing trend of reduced reliance on Swiss bank accounts by foreign nationals. This shift is likely being driven by global efforts to improve financial transparency and curb tax evasion.
For India, while a temporary surge in deposits occurred during the pandemic, the broader picture is one of a steady decline in funds held by its citizens in Swiss financial institutions.
(With agency inputs)

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Economic Times

an hour ago

• Economic Times

UAE rule, wary I-T to deter dodgy crypto deals

Mumbai: In the lane to launder money, the skill to move cryptos to control companies and properties in Dubai has been honed over the past few years. But treading that alley would soon become tougher. Dual, albeit unrelated, developments in India and the UAE would force money movers to devise new tricks. First, Income tax (I-T) officials, hunting for illicit homes of Indians over the past six months, now strongly suspect that some property purchases were made with cryptocurrencies; second, a new regulatory regime in the Middle East country, would soon end payment in cryptos, other than stable coins, to freely buy goods and services. "When Indian residents use crypto to purchase real estate, they bypass Indian banking channels and FEMA scrutiny. But, under the new UAE regulations (expected from August), merchants would no longer accept crypto directly. Only entities licensed by the UAE Central Bank would be allowed to convert stablecoins to AED after collecting full KYC. While this framework ensures the buyer's identity is recorded, it remains unclear whether such data would be shared under the India-UAE tax treaty," said Purushottam Anand, founder of the law firm Crypto raiding a leading UAE developer having roots in Mumbai and clients across India, a northern office of the I-T department found that more than 460 buyers in the 650-odd property deals have no record of having remitted money through banks to acquire the properties. According to findings which were shared with other I-T centres two months ago, the arm of the UAE realtor which brokered the deals was aided by a network of 86 sub-brokers who later shared details with the tax office. According to tax circles, some of the clients had paid in cryptos, probably under the belief it would go untraced. Earlier this year, the department had found that hundreds of mule accounts were opened by a few persons in Kerala to deposit cash, use the money to buy cryptos -either on local platforms or through peer-to-peer transactions-and then move the coins to other wallets before encashing the them in UAE, or buying assets like properties, or transferring them to third parties. "When digital assets move from exchanges to P2P platforms or private wallets, monitoring becomes difficult, creating opportunities for illegal activities such as ransomware attacks, laundering, tax evasion, and potentially terrorist financing. Although the exchanges are required to report 'suspicious transactions', including withdrawals, with the Financial Intelligence Unit-India, such risks can be further addressed through stricter enforcement of TDS provisions, i.e. Sections 194S or 195, ensuring tax compliance for all crypto transactions, whether conducted on or off exchanges. Additionally, specifying the reporting entities and the format for disclosures under Section 285BAA will improve traceability," said Ashish Karundia, founder of the CA firm Ashish Karundia & Co. 'PAYMENT TOKEN REGULATIONS' The new 'Payment Token Services Regulation' lays down the rules and conditions established by the UAE Central Bank for granting a licence or registration for payment token services-which include payment token issuance, token conversion, and token custody and transfer. Under the rules no merchant or anyone in the UAE selling goods or services can accept a virtual asset unless it's a dirham payment token issued by a licensed issuer. Also, a bank cannot act as a payment token issuer. UAE is working on Dirham-linked stable coin (like USDT or Tether which is pegged to the dollar)."This would have implications for India which has close economic and financial ties with the UAE. By bringing digital assets such as payment tokens under a structured licensing and anti-money laundering framework, the regulation adds a layer of safety and transparency to cross-border digital financial flows. For Indian individuals and businesses engaging in the UAE's digital economy, on one hand this means greater clarity, reduced risk of fraud, and alignment with global best practices; on the other hand, the clear prohibition on anonymous crypto instruments like privacy tokens reinforces the global trend toward traceable and regulated digital transactions. This is something India is also actively pursuing through its own financial intelligence mechanisms. This would deter transactions in property, high value luxury products bought by Indians in UAE using crypto tokens," said Siddharth Banwat, partner at CA firm Banwat & Associates dealers said the UAE rules are not entirely fool-proof as coins can be routed through platforms in multiple jurisdictions whose cooperation would be vital to spot the trail. But the very presence of licensed intermediaries collecting and storing information would deter money movers.

Business Standard

an hour ago

• Business Standard

Epsilon to challenge China's dominance in EV battery cell materials

May set up ₹9K cr plant for making 100K tonnes of graphite anode Surajeet Das Gupta New Delhi Listen to This Article Rare earth magnet is not the only area where the Chinese dominate the world. They also control two other crucial areas of electric vehicle (EV) battery cell — manufacturing of graphite anode, required for lithium-ion batteries, as well as cathode powder, to make lithium iron phosphate (LiFePO4 or LFP) battery. LFP batteries go into buses and commercial vehicles (CVs), and are considered safer. But an Indian company, Epsilon Advanced Materials, is trying to break into the market. It has finalised plans to set up a plant to manufacture these in Karnataka. To begin with, it is setting up a 100,000

Business Standard

2 hours ago

• Business Standard

Mutual fund assets surge to nearly one-third of the bank deposits

Mutual fund (MF) assets as a percentage of total bank deposits have nearly doubled over the past eight years, highlighting a growing investor appetite for equities and other financial assets. As of May 2025, mutual fund assets under management (AUM) stood at ₹72.2 trillion — almost a third of the total bank deposits, which amounted to ₹232 trillion. This marks a significant jump from March 2017, when MF AUM was just 16 per cent of bank deposits. Except for a brief slump during the pandemic in 2020, the ratio has shown consistent growth. The post-Covid period has seen especially strong momentum for mutual funds, driven by a robust equity market rally. This has led to growth on two fronts: mark-to-market gains on existing portfolios and the addition of new investors. Since March 2020, MF AUM has more than tripled, while bank deposits have grown by just 71 per cent over the same period. Industry experts attribute the surge to the growing popularity of systematic investment plans, which have brought steady inflows into mutual funds regardless of market volatility. Additionally, the rapid increase in smartphone and internet penetration, along with the rise of user-friendly mobile investing platforms, has further boosted mutual fund adoption. Despite this growth, the overall mutual fund investor base remains modest. As of March 2025, there were only 54.2 million unique mutual fund investors in the country.