Funds linked to Indian clients in Swiss banks declined by more than 8% in 2025 to 3.25 billion Swiss francs (around ₹36,793 crore), according to annual data released by the Swiss National Bank (SNB) on Thursday. The decline was primarily driven by a fall in funds held through local branches and other financial institutions, as reported by Moneycontrol. This represents a significant shift from the previous year's performance, with the total amount described by the SNB as 'total liabilities' of Swiss banks towards Indian clients. The fall in 2025 follows a sharp three-fold rise in 2024, when total Indian funds in Swiss banks climbed to 3.5 billion Swiss francs, the highest level since 2021. The latest decline comes after a sharp rebound in 2024, when Indian-linked funds had surged threefold to 3.5 billion Swiss francs, the highest level since 2021, driven largely by a spike in funds routed via banks and other financial intermediaries.
Despite the overall decline, deposits held directly in customer accounts rose sharply during 2025. Funds belonging to individual and institutional clients increased by more than 50% to 524 million Swiss francs (around ₹6,000 crore), accounting for about 16% of the total amount. According to the SNB data reported by Moneycontrol, this growth in direct customer deposits provided some stability amid the broader decline in overall Indian-linked assets. The bulk of the remaining assets continue to be held through other channels such as interbank positions, fiduciary deposits, and securities held in custody. The rise in direct customer deposits alongside a fall in other categories suggests a possible restructuring of how Indian entities choose to hold assets abroad, rather than a simple inflow or outflow story.
The SNB data showed significant changes in how Indian funds were structured across different asset categories. Funds held through banks and other financial institutions stood at about 2.6 billion Swiss francs at the end of 2025, down nearly 15% from the previous year. Assets held through fiduciaries and trusts fell 55% to 18.6 million Swiss francs, while other liabilities such as bonds, securities and financial instruments declined to 105.7 million Swiss francs. As reported by Moneycontrol, the total amount of CHF 3,250.5 million included CHF 524 million in customer deposits, CHF 2.6 billion held via other banks, CHF 18.6 million through fiduciaries or trusts, and CHF 105.7 million in bonds, securities and other financial instruments. The figures represent all types of funds held by Indian customers in Swiss banks, including deposits from individuals, enterprises and banks, as well as funds linked to branches of Swiss banks operating in India.
The latest decline comes after a sharp rebound in 2024, when Indian-linked funds in Swiss banks had surged threefold to 3.5 billion Swiss francs, the highest level since 2021. According to the SNB, the figures represent the total liabilities of Swiss banks towards Indian clients, including deposits from individuals, companies and banks, as well as non-deposit liabilities. Separate data from the Bank for International Settlements (BIS), regarded by Indian and Swiss authorities as a more reliable indicator of deposits held by Indian individuals in Swiss banks, showed a 20% increase in 2025 to USD 89.73 million (about ₹780 crore). The total amount stood at a record high of nearly 6.5 billion Swiss francs in 2006, after which it has been mostly on a downward path, except for a few years including 2011, 2013, 2017, 2020, 2021, 2022, 2023 and 2024. Experts point out that these official SNB figures represent all 'liabilities' of Swiss banks towards Indian clients and are not a direct measure of deposits held by Indian individuals.
The data comes in the backdrop of tighter global financial transparency and automatic exchange of information agreements between India and Switzerland. Authorities and analysts believe these mechanisms have made it harder to hide undeclared assets, pushing more money into formally reported channels and reducing the opacity traditionally associated with Swiss bank holdings. Switzerland and India have been exchanging financial account information automatically since 2018 under a tax information-sharing framework. Detailed financial information on Indian residents holding accounts with Swiss institutions was first shared with Indian tax authorities in September 2019, and the process has continued annually since then. Swiss authorities have consistently maintained that assets held by Indian residents in Switzerland should not automatically be treated as black money and have reiterated their support for India's efforts to combat tax fraud and evasion. The rise in direct customer deposits alongside a fall in other categories suggests a possible restructuring of how Indian entities choose to hold assets abroad, reflecting a shift towards more transparent and formally reported channels.
