Funds held by Indian individuals and entities in Swiss banks have declined to CHF 3.25 billion in 2025, according to the latest data from the Swiss National Bank. This marks a decrease from the previous year's total of CHF 3.5 billion, which had seen a sharp three-fold jump from 2023 levels.
Customer Deposits Show Growth
Despite the overall reduction in total funds, customer deposits actually increased during the same period. The data indicates that while some large holdings may have been withdrawn or restructured, regular deposits by Indian clients saw a modest uptick. This suggests a shift in the composition of Indian wealth held in Swiss banks.
Context of the Decline
The 2025 dip comes after a significant surge in 2024, when funds more than tripled from CHF 1.1 billion in 2023. Analysts attribute the fluctuations to changing global tax compliance norms, bilateral information sharing agreements, and economic uncertainties. India has been actively pursuing measures to curb black money, including automatic exchange of financial account information with Switzerland under the Common Reporting Standard (CRS).
Swiss Banking Secrecy and Transparency
Switzerland has gradually moved away from its traditional banking secrecy, cooperating with international efforts to combat tax evasion. The automatic exchange of information with India began in 2018, leading to greater transparency. The latest figures reflect this ongoing trend, with Indian funds in Swiss banks now at levels comparable to those seen before the 2024 spike.
Industry Reactions
Financial experts note that the decline in total funds does not necessarily indicate a flight of capital, but rather a rebalancing of assets. Many Indian clients are diversifying their holdings across multiple jurisdictions. The increase in customer deposits, however, signals continued confidence in Swiss banking services for legitimate wealth management.
The Swiss National Bank data includes funds held in various forms such as deposits, securities, and fiduciary liabilities. The figures are reported annually and are closely watched by Indian authorities as part of efforts to track offshore wealth.
