The amount of Indian money in Swiss banks has seen a record threefold increase in 2024, sparking renewed discussions about black money.
According to the annual report by the Swiss National Bank (SNB), Indian funds in Swiss banks reached 3.5 billion Swiss francs (approx. ₹37,600 crore) this year.
But does this mean black money is making a comeback? Here’s the complete breakdown.
Why Did the Money Rise?
The sharp increase is mainly due to a huge jump in deposits through local branches and other financial institutions.
Direct deposits made by Indian individuals rose by only 11% to 346 million Swiss francs (around ₹3,675 crore), which is just a small portion (about 10%) of the total Indian funds in Swiss banks.
This comes after a 70% drop in 2023, when Indian deposits had fallen to a four-year low of 1.04 billion Swiss francs.
Is This All Black Money?
No. This is not necessarily black money. In fact, 2021 saw the highest deposit level of 3.83 billion Swiss francs in recent years.
Importantly, the figures shared by SNB are official banking data and do not include undisclosed or illegal funds.
Also, accounts opened by NRIs or third-country residents are not part of these numbers.
How Is the Money Held? SNB Shares Full Breakdown
As of the end of 2023, total Indian funds in Swiss banks were 3,545.54 million Swiss francs, split as follows:
₹346 million in direct deposits (up from ₹310 million in 2022)
₹3.02 billion through other banks (up sharply from ₹427 million)
₹41 million via fiduciaries or trusts (up from ₹10 million)
₹135 million in bonds, securities, and financial products (down from ₹293 million)
Highest Record Was in 2006
In 2006, Indian money in Swiss banks touched a record 6.5 billion Swiss francs, but then began to decline. However, certain years like 2011, 2013, 2017, 2020, 2021, 2022, and 2023 saw some recovery.
The SNB’s “total liabilities” data includes all types of funds—personal, corporate, and institutional—including money handled by Indian branches of Swiss banks.
BIS Data: More Reliable for Personal Deposits
The Bank for International Settlements (BIS) provides data that is considered more accurate for individual deposits. In 2024, these funds rose by about 6%, reaching $74.8 million (approx. ₹650 crore).
Previously, these numbers had dropped:
2023: down 25%
2022: down 18%
2021: down over 8%
2020: up by 39%
These figures include not only deposits but also loans taken by Indians. They had hit a high of $2.3 billion (over ₹9,000 crore) in 2007, then saw frequent ups and downs.
What Do Swiss Authorities Say?
Swiss officials have always clarified that not all Indian deposits in Swiss banks should be seen as black money. They cooperate with India in its efforts to track tax evasion and illegal funds.
Automatic Information Sharing Started in 2018
Since 2018, India and Switzerland have a system for automatic sharing of financial information.
The first data exchange happened in September 2019, and continues every year. This includes all account details of Indian residents in Swiss financial institutions.
Ongoing Investigations
Switzerland has also shared information in hundreds of cases where Indians were suspected of wrongdoing and India provided initial proof. Investigations into such matters are ongoing.
India Rises to 48th in Swiss Bank Rankings
Overall, the total foreign funds in Swiss banks dropped slightly to 977 billion Swiss francs in 2024 (from 983 billion in 2023). India’s share was 1.59 billion Swiss francs, a 9% increase over the previous year.
India’s ranking improved from 67th in 2022 to 48th in 2023, although it slipped slightly from the 46th spot last year.
Countries With Most Money in Swiss Banks
UK: 222 billion
US: 89 billion
West Indies: 68 billion
Other top countries: Germany, France, Hong Kong, Luxembourg, Singapore, Guernsey, UAE
Bangladesh Up, Pakistan Down
Pakistan: Down from 286 million to 272 million Swiss francs
Bangladesh: Up from 18 million to 589 million Swiss francs
Like India, both countries are also facing internal debates about alleged black money parked in Swiss banks.
