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Indian Deposits in Swiss Banks Drop by 70% to Reach Four-Year Low of ₹9,771 Crore

Indian funds in Swiss banks have plummeted by 70% in 2023, reaching a four-year low of 1.04 billion Swiss Francs (₹9,771 crore), according to the Swiss National Bank (SNB). This marks a significant decline after a peak in 2021 and is attributed to decreases in bonds, securities, and other financial instruments.

Key Drivers of Decline

The sharp decline in funds held by Indian clients is primarily due to a substantial reduction in investments in bonds, securities, and other financial instruments. Funds held in customer deposit accounts and cash through other bank branches in India have also decreased significantly.

Breakdown of Funds

  • Customer Deposits: CHF 310 million (down from CHF 394 million in 2022)
  • Other Banks: CHF 427 million (down from CHF 1,110 million)
  • Fiduciaries/Trusts: CHF 10 million (down from CHF 24 million)
  • Other Amounts: CHF 302 million (down from CHF 1,896 million)

Historical Context

Indian deposits reached a record high of nearly CHF 6.5 billion in 2006, but have generally been on a downward trend with exceptions in 2011, 2013, 2017, 2020, and 2021.

Black Money Debate

These figures do not reflect the alleged ‘black money’ held by Indians in Switzerland, as they are official numbers provided to the SNB. The data also exclude funds held by Indians under third-country entities.

International Comparisons

The UK tops the list of foreign clients’ funds in Swiss banks with CHF 254 billion, followed by the US (CHF 71 billion) and France (CHF 64 billion). India ranked 67th at the end of 2023, down from 46th in 2022.

Bank for International Settlements Data

According to the Bank for International Settlements’ “locational banking statistics,” Indian deposits in Swiss banks saw a 25% decrease in 2023, amounting to USD 70.6 million (₹663 crore). This metric is considered more accurate by Swiss and Indian authorities.

Cooperation on Tax Evasion

Switzerland has been actively sharing information with India to combat tax evasion and financial fraud. Since 2018, an automatic exchange of tax-related information has been in place, providing detailed financial data to Indian tax authorities annually.

Global Context

Overall, the total amount of funds held by foreign clients in Swiss banks decreased to CHF 983 billion in 2023 from CHF 1.15 trillion in 2022. Indian assets accounted for CHF 1.46 million, marking a 63% decrease from the previous year and the lowest level in over two decades.

Swiss National Bank (SNB) Key Points

Establishment: The Swiss National Bank (SNB) was established on June 16, 1907.

Headquarters: The headquarters are located in Bern and Zurich, Switzerland.

Current President: Thomas Jordan (as of 2023).

Primary Role: The SNB serves as the central bank of Switzerland, responsible for monetary policy, issuing banknotes, and ensuring the stability of the Swiss financial system.

Ownership: The SNB is a joint-stock company with shares traded on the stock market, but the majority of shares are held by Swiss cantons and cantonal banks.


  • Formulating and implementing the country’s monetary policy.
  • Managing currency reserves.
  • Ensuring the stability of the financial system.
  • Issuing Swiss Franc banknotes.
  • Acting as a banker to the Swiss Confederation.

Legal Framework

The SNB operates under the Swiss National Bank Act, which defines its mandate and powers.

Financial Reporting

The SNB publishes annual reports detailing its financial position, monetary policy, and other activities.

Indian Deposits in Swiss Banks Drop by 70% to Reach Four-Year Low of ₹9,771 Crore_4.1