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Business Standard
7 hours ago
- Business
- Business Standard
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)
India Gazette
9 hours ago
- Business
- India Gazette
Indian deposits in Swiss banks increase threefold in 2024 Media
Citizens of India hold about $3.78 billion in the European tax haven Indian deposits in Swiss banks rose threefold year-on-year in 2024, to about $3.78 billion, the PTI news agency reported, citing data from the Swiss National Bank (SNB). The current total in the European tax haven is the highest since 2021, when Indian deposits in Swiss banks reached a 14-year high of $4.13 billion, according to SNB data. Indian politicians have long claimed that Swiss banks hold unaccounted or "black money," believed to be proceeds from corruption. The Swiss authorities, however, have consistently stated that the assets held by Indians in Switzerland should not be automatically assumed to be illegal. Bern has previously committed to cooperating with New Delhi to combat tax evasion and fraud. Switzerland and India signed a joint declaration on the introduction of automatic exchange of information on tax matters in 2016. Under this agreement, Switzerland provides India with detailed financial information on Indian residents who hold accounts with Swiss financial institutions. The exchange, the first of which took place in 2019, is annual. The Swiss authorities have reportedly shared information about hundreds of Indian account holders suspected of financial misconduct, in response to India submitting evidence to support the claims. Switzerland has long been considered a tax haven due to its low taxes and stringent privacy laws. The UK topped the list of Swiss bank deposit owners in 2024, while India was in 48th place, up from 67th at the end of 2023, the PTI report added. (
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First Post
9 hours ago
- Business
- First Post
Why Indians continue to park their money in Swiss banks
Decades ago, Bollywood movies familiarised many in India with scenic Switzerland and secretive Swiss bank accounts. But, decades later, Indians still continue to park their money in Swiss financial institutions. What's the big draw? read more Swiss authorities say they actively support India in the fight against tax fraud and evasion. AFP The years may go on but some things never change. It was Bollywood movies that familiarised many in India with scenic Switzerland and secretive Swiss bank accounts decades ago. But Indians still continue to park their money in Swiss banks. But what happened? What do we know? Why is this? Let's take a closer look: What happened? According to the Swiss National Bank (SNB), Indians deposited 3.5 billion Swiss francs (CHF), around 37,600 crore, in 2024 alone. This is the highest level since 2021, when the amount of funds deposited by Indians hit a 14-year high of 3.83 billion Swiss francs. STORY CONTINUES BELOW THIS AD Of this, 3.02 billion (CHF) came from other banks, and 135 million (CHF) from bonds and securities. The money deposited directly cut by individual customers rose 11 per cent to 346 million CHF. This comprises around 10 per cent of the total money deposited. This comes after the deposits in 2023 by Indians plunged to 1.04 billion Swiss francs – the lowest level since 2020. However, this still remains short of the all-time high of 6.5 billion CHF way back in 2006. It was Bollywood movies that first familiarised many in India with scenic Switzerland and Swiss bank accounts. Reuters It is important to note that this data comes from the official reports. It does not include the black money which is deposited in Swiss bank accounts. India has long witnessed controversy surrounding black money parked in Switzerland. Political parties have for years vowed to bring this money back to India. Why is this? Experts say there are many reasons for this. First, Switzerland has positioned itself, and is widely seen, as a neutral country. Thus in times of war unrest it is seen as a safe bet to park your money in Switzerland. The country also has excellent laws when it comes to offshore trusts – thus allowing the super-wealthy to save millions on their taxes. STORY CONTINUES BELOW THIS AD The Swiss francs as a currency is also generally considered a stable and reliable. Swiss authorities have insisted that assets held by Indian residents in Switzerland cannot be considered 'black money.' They say they actively support India in its fight against tax fraud and evasion. Authorities in India and Switzerland have been exchanging information about taxation since 2019. This came after the two countries signed the Automatic Exchange of Information (AEOI) agreement in 2018. Swiss authorities have provided detailed financial information on all Indian residents having accounts with Swiss financial institutions since 2018. Switzerland has also been actively sharing details about accounts of Indians suspected to have indulged in financial wrongdoings after the submission of prima facie evidence. Such exchange of information has taken place in hundreds of cases thus far. The UK saw the most money in Swiss banks at CHF 222 billion. Then came the US US with CHF 89 billion and West Indies (CHF 68 billion). Germany, France, Hong Kong, Luxembourg, Singapore, Guernsey and the UAE were all next. STORY CONTINUES BELOW THIS AD India, meanwhile, was way down at 48th place. India was 67th at the end of 2023 and 46th place at the end of 2022. Pakistan also saw a dip to CHF 272 million (from CHF 286 million), while Bangladesh witnessed a sharp increase from CHF 18 million to CHF 589 million. With inputs from agencies
Mint
10 hours ago
- Business
- Mint
Indian deposits in Swiss banks down nearly 18% over last 10 years: Here's why
Deposits of Indian customers in Swiss banks fell by around 18 per cent over the past decade, according to the latest figures released by the Swiss National Bank (SNB). The data shows a drop from approximately 425 million Swiss francs in 2015 to 346 million Swiss francs in 2024. The SNB data also showed that Indian deposits witnessed a sharp rise during the COVID-19 period, touching a 10-year high of around 602 million Swiss francs. However, the deposits started declining after the pandemic peak, ANI reported. In 2023, deposits stood at 309 million Swiss francs, whereas in 2024, they only grew by 37 million Swiss francs. Despite this annual rise, the overall trend over the last decade remains downward. The downward trend of deposits in Swiss banks can be due to various reasons like tightening regulations, increased scrutiny, and changes in international financial transparency norms, said ANI. The most significant drop was seen in deposits by American nationals. Their deposits in Swiss banks plunged from 64.2 billion Swiss francs in 2015 to 24.4 billion Swiss francs in 2024, a decline of about 62 per cent. For India, the trend clearly shows that over the last decade, deposits by Indian nationals in Swiss banks have declined, although a temporary hike in deposits was seen during the pandemic in 2021, the news agency reported. This declining trend in deposits is not unique to India. Several other countries also witnessed a reduction in funds deposited in Swiss banks by their nationals, the news agency reported. Among major economies, deposits by UK nationals fell from 44 billion Swiss francs in 2015 to 31 billion Swiss francs in 2024. Chinese deposits also saw a decline, reducing from 5.01 billion Swiss francs to 4.3 billion Swiss francs over the same period. The neighbouring countries of India — Pakistan and Bangladesh—also saw a decline. Deposits held by Pakistani nationals in Swiss banks have witnessed a steep decline over the last ten years. According to the data, deposits by Pakistanis stood at 947 million Swiss francs in 2015 but have dropped significantly to 241 million Swiss francs by 2024, a fall of nearly 75 per cent. A similar trend was observed in the case of Bangladeshi nationals. Their deposits in Swiss banks declined from 48 million Swiss francs in 2015 to just 12.6 million Swiss francs in 2024, marking a drop of over 73 per cent, as per data cited by ANI.
Economic Times
12 hours ago
- Business
- Economic Times
Why do Indians still increasingly rush to Swiss Banks to park their money
The Alpine banks have not lost their charm. Indian money parked in Swiss banks more than tripled in 2024, reaching 3.54 billion Swiss francs (around Rs 37,600 crore), the Swiss National Bank (SNB) revealed on June 19. This is the highest level since of the increase came from funds held through bank channels and other financial entities, not individual customer accounts, news agency PTI said in a report. Deposits directly from Indian customers rose modestly — up 11% to 346 million Swiss francs (about Rs 3,675 crore). These deposits make up just one-tenth of the total Indian-linked to the SNB, the total CHF 3,545.54 million reflects all liabilities of Swiss banks toward Indian clients. This includes CHF 3.02 billion held through other banks, CHF 346 million in customer accounts, CHF 41 million via fiduciaries or trusts, and CHF 135 million in other instruments like bonds and securities. ALSO READ: Indian money in Swiss banks jumps more than three times in 2024, hits Rs 37,600 crore, data shows (Join our ETNRI WhatsApp channel for all the latest updates) In contrast, these funds had dropped by 70% in 2023, hitting a four-year low of CHF 1.04 billion. The latest rise is therefore seen as a significant rebound, though still short of the all-time high of CHF 6.5 billion in 2006. The SNB data is based on official reports by banks and does not reveal details about alleged black money or accounts held through entities in other countries. Swiss officials have repeatedly said these funds cannot automatically be labelled issue of alleged 'black money' held by Indians in Swiss banks has been a recurring topic in Indian politics, with political parties and leaders frequently pledging to 'bring it back.'But Swiss banks aren't just about the black money buzz — there's a bigger story behind the vaults. There is an element of truth in Arun Jaitley's words that 'not all Swiss bank money is dirty'.For the wealthy, Swiss banks serve as a safe haven during political unrest or currency crises in their home account is a ticket to the rich man's club that has its privileges — such as, access to investment opportunities where the entry level is higher for investors outside the club. A relatively stable currency shields the money from wild swings in the foreign exchange market. Trust laws in Switzerland are probably the best to pool and ring-fence family wealth — through offshore trust in which family members spread across the globe are named beneficiaries. 'Assets held by Indian residents in Switzerland cannot be considered as 'black money',' Swiss authorities have stated. 'Switzerland actively supports India in its fight against tax fraud and evasion.' The landlocked Alpine country has now been sharing annual financial details of Indian residents since 2018 under an automatic exchange of information agreement. The first data transfer to Indian authorities took place in September 2019. Since then, regular information sharing has continued, including on accounts with suspected links to financial irregularities.'Such exchange of information has taken place in hundreds of cases so far,' according to Swiss Indian-linked money rose sharply, total foreign client funds in Swiss banks fell slightly to CHF 977 billion in 2024 from CHF 983 billion a year earlier. Indian clients held CHF 1.59 billion in assets by the end of 2023 — an increase of 9% rose to the 48th spot globally in terms of funds in Swiss banks, up from 67th last year. However, this is still below the 46th rank it held at the end of neighbouring countries, Pakistan saw a dip to CHF 272 million, while Bangladesh's funds rose sharply to CHF 589 million. Like in India, discussions around black money in Swiss accounts are sensitive topics in both countries.
