🏦 10‑Year Indian Deposits in Swiss Banks Shrink 18%—But 2024 Sees a Big Bounce
Indian customer deposits in Swiss banks have fallen by 18% over the past decade, declining from approximately CHF 425 million in 2015 to CHF 346 million in 2024 (thedailyguardian.com, ndtv.com). Yet the year 2024 marked a notable reversal, with deposits rising 12% from CHF 309 million in 2023—when deposits hit a four-year low—back to CHF 346 million .
🔍 The Surge in 2024: What’s Driving the Uptick?
- Total Indian-linked funds in Swiss banks more than tripled in 2024 to CHF 3.54 billion (Rs 37,600 crore), the highest since 2021’s CHF 3.83 billion (bhaskarenglish.in).
- However, the rise was driven largely by institutional and fiduciary channels:
- CHF 3.02 billion held via banks and branches (versus CHF 427 million in 2023)
- CHF 41 million through trusts/fiduciaries (up from CHF 10 million)
- Only CHF 346 million—a modest 11% increase—came from customer deposits, representing just 1/10 of the total Indian-linked funds (bhaskarenglish.in, news.abplive.com, thedailyguardian.com).
⚖️ Institutional vs Individual Deposits
This suggests the increase reflects more on how institutional investors and corporate entities structure their funds in Switzerland—not necessarily a surge in individual Indians stashing wealth there.
⏩ A Decade’s Trend: Up, Down, Up
- Deposits peaked at CHF 602 million during the COVID‑19 period in 2020, but declined in 2021–23 before rebounding in 2024 to CHF 346 million (news.abplive.com).
- Swiss banks’ total foreign client assets dropped slightly (CHF 983 billion to CHF 977 billion in 2024), but Indian-linked assets increased by 9% to CHF 1.59 billion (m.economictimes.com).
🌐 India’s Global Ranking Improves
India climbed from 67th to 48th place among nations with Swiss-linked funds, though still behind its 46th rank in 2022 (m.economictimes.com).
🔎 Why This Matters
- Regulatory environment: Stricter global transparency and automatic information-sharing (AEOI) since 2018 discourage covert holdings—but legit businesses and institutional investors may still use Swiss banks (bhaskarenglish.in).
- Not “black money”: Swiss authorities stress that deposits are legal and declared. The increase does not necessarily mean illicit assets, but reflects legitimate institutional usage (bhaskarenglish.in).
- Business versus individual holdings: The dominance of institutional flows over individual deposits in this surge suggests cross-border financial activity, not private asset hoarding.
📝 By the Numbers
| Metric | 2015 | 2020 | 2021 (peak) | 2023 | 2024 |
|---|---|---|---|---|---|
| Individual deposits (CHF millions) | 425 | ~602 | 346 | 309 | 346 |
| Total Indian-linked Swiss funds (CHF billions) | – | – | 3.83 bn | 1.04 bn | 3.54 bn |
📌 Bottom Line
- Decline over 10 years: Indian deposits have dropped 18% in a decade.
- Institutional boom in 2024: Swiss-linked Indian funds reached new high due to bank/branch/institutional inflows.
- Only modest rise in private holdings: Individual depositor balances saw a limited bounce.
- Emphasis on compliance: Transparency measures and regulatory cooperation aim to ensure these are legal and reported investments.