Indian money parked at the Swiss Banks has tripled in 2024, according to annual figures released by the Swiss National Bank on Thursday. The figures have risen to 3.5bn Swiss francs (CHF), or approximately ₹37,600 crore, during the period.
The sharp increase was mainly due to a significant surge in funds held through local branches and other financial institutions. This is the highest spike since 2021, when the total Indian money in Swiss banks had hit a 14-year-high of CHF 3.83bn.
However, money in customer accounts of Indian clients rose by only 11% and accounted for just about one-tenth of overall funds. The sharp increase in the overall funds follows a 70% decline in funds parked by Indian individuals and firms in Swiss banks, including through local branches and other financial institutions, in 2023 to a four-year low of 1.04bn Swiss francs.
India placed at 48th rank in terms of total foreign clients' money in Swiss banks, a jump from its previous 67th rank at the end of 2023, but below 46th place at the end of 2022.
Is This Black Money?
The official figures reported by SNB neither indicate the quantum of alleged black money held by Indians in Switzerland nor include the money that Indians, NRIs or others might have in Swiss banks in the names of third-country entities.
On the other hand, Swiss authorities have always maintained that assets held by Indian residents in Switzerland cannot be considered as 'black money' and they actively support India in its fight against tax fraud and evasion.
An automatic exchange of information in tax matters between Switzerland and India has been in force since 2018. Under this framework, detailed financial information on all Indian residents having accounts with Swiss financial institutions since 2018, was provided for the first time to Indian tax authorities in September 2019 and this is being followed every year.
[With inputs from PTI]
