Funds linked to Indian clients in Swiss banks declined by more than 8 per cent in 2025 to 3.25 billion Swiss francs (around Rs 36,793 crore), according to annual data released by the Swiss National Bank (SNB) on Thursday.The decline was largely driven by a fall in funds held through other banks and financial institutions, which continued to account for the largest share of Indian-linked assets in Switzerland.Despite the overall drop, deposits held directly in customer accounts rose sharply during the year. Funds belonging to individual and institutional clients increased by more than 50 per cent to 524 million Swiss francs (around Rs 6,000 crore), although they represented only about 16 per cent of the total amount, reported PTI.The SNB data showed that funds held through banks and other financial institutions stood at about 2.6 billion Swiss francs at the end of 2025, down nearly 15 per cent from the previous year. Assets held through fiduciaries and trusts fell 55 per cent to 18.6 million Swiss francs, while other liabilities such as bonds, securities and financial instruments declined to 105.7 million Swiss francs.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. That increase had been driven primarily by a jump in funds routed through local branches and other financial institutions.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. The data also includes funds held through branches of Swiss banks operating in India.The Swiss central bank emphasised that these figures should not be interpreted as a measure of alleged black money held by Indians in Switzerland. The data also excludes assets that may be held through entities incorporated in third countries.Historically, Indian-linked funds in Swiss banks reached a record high of nearly 6.5 billion Swiss francs in 2006 before entering a largely downward trend, interrupted by occasional increases in recent years.Separate figures from the Bank for International Settlements (BIS), often cited by Indian and Swiss authorities as a better indicator of deposits held by Indian individuals in Swiss banks, showed a different trend. Such deposits rose 20 per cent in 2025 to USD 89.73 million (about Rs 780 crore), continuing a recovery seen over the past two years.Swiss authorities have repeatedly maintained that money held by Indian residents in Swiss banks cannot automatically be classified as illicit wealth. Switzerland and India have been exchanging financial account information automatically since 2018 under a tax transparency framework, with annual data-sharing continuing since 2019.The SNB data also showed that total funds belonging to foreign clients in Swiss banks declined nearly 8 per cent in 2025 to 1.05 trillion Swiss francs.Among countries with the largest amount of funds in Swiss banks, the United Kingdom ranked first with 192 billion Swiss francs, followed by the United States and France. India improved its position to 46th place from 48th a year earlier.Among South Asian neighbours, Pakistan’s funds in Swiss banks declined to 257 million Swiss francs from 272 million, while Bangladesh recorded a sharp 43 per cent increase to 842 million Swiss francs.
