Indian Money in Swiss Banks Triples in 2024, Surges to Rs 37,600 Crore: What’s Behind the Spike?

In a surprise twist, Indian clients' deposits in Swiss banks more than tripled in 2024 to a record Rs 37,600 crore (CHF 4.1 billion), the latest figures released by the Swiss National Bank (SNB) show. This is the highest in more than a decade and has yet again sparked controversies related to black money, regulatory oversight, and cross-border capital flows.

 

Key Highlights:

 

•⁠  ⁠The rise stems from a sharp increase in deposits by Indian households and companies and increased holdings in the form of bonds, shares, and other forms.

 

•⁠  ⁠Indian funds in Swiss banks attracted approximately Rs 11,800 crore in 2023, and this year's upsurge is one of the steepest ever.

 

•⁠  ⁠SNB figures include direct customer deposits and funds on account through fiduciaries but do not include legal and illegal money.

 

•⁠  ⁠Experts attribute the spike to reasons including world economic instability, fluctuations in currencies, and diversity in international banking regulations.

 

•⁠  ⁠Indian authorities are asserting that all Indian account holders' information is being exchanged under the automatic exchange of information agreement with Switzerland to help detect hidden assets.

 

Prediction: The sudden surge will probably spur calls for tighter monitoring of foreign assets and greater transparency. Governments call for more information exchange and cooperation, but the trend puts under the spotlight the need to protect against illicit financial flows and redouble tax reform efforts.

 

Source: Swiss National Bank, Economic Times, NDTV