The total amount of money linked to Indian clients in Swiss banks fell by more than 8 per cent in 2025 to 3.25 billion Swiss francs (about ₹36,793 crore), reversing part of the sharp rise recorded a year earlier, according to annual data released by the Swiss National Bank (SNB) on Thursday.

The decline was driven primarily by a fall in funds held through local branches and other financial institutions, even as money parked in customer accounts of individual and institutional clients rose by more than 50 per cent during the year.

Total funds fall after 2024 surge

SNB data showed that the total amount, described as the "total liabilities" of Swiss banks or "amounts due to" Indian clients, stood at CHF 3,250.5 million at the end of 2025.

The fall came after a nearly threefold jump in 2024, when Indian-linked funds rose to CHF 3.5 billion, the highest level since 2021. In that year, Indian money in Swiss banks had touched a 14-year high of CHF 3.83 billion.

The latest total includes CHF 524 million in customer deposits, CHF 2.6 billion held through other banks, CHF 18.6 million through fiduciaries or trusts, and CHF 105.7 million in bonds, securities and other financial instruments.

Customer deposits rise sharply

While overall funds declined, customer deposits increased significantly.

Money held in customer accounts of individual and institutional clients rose by over 50 per cent to CHF 524 million, or nearly ₹6,000 crore. However, these deposits accounted for only about 16 per cent of the overall amount linked to Indian clients.

The largest component remained "amounts due to banks" — funds held through other banking and financial institutions — at CHF 2.6 billion, despite a decline of nearly 15 per cent during the year.

Funds held through fiduciaries and trusts fell sharply to CHF 18.6 million from CHF 41 million a year earlier, while "other amounts" due to customers declined to CHF 105.7 million from CHF 135 million.

Not a measure of black money

The SNB figures are based on data reported by Swiss banks and do not indicate the amount of alleged black money held by Indians in Switzerland.

The data also excludes funds that Indians, NRIs or other entities may hold through third-country structures.

According to the SNB, the figures cover all categories of funds held by Indian customers, including deposits from individuals, enterprises and banks, as well as liabilities linked to Swiss banks' branches in India.

BIS data paints a different picture

Separate data from the Bank for International Settlements (BIS), often cited by Indian and Swiss authorities as a better measure of deposits held by Indian individuals in Swiss banks, showed an increase during 2025.

According to BIS locational banking statistics, such deposits rose 20 per cent to USD 89.73 million (around ₹780 crore) in 2025.

The increase followed a rise of nearly 6 per cent in 2024, after declines in 2023, 2022 and 2021. These deposits had peaked at more than USD 2.3 billion at the end of 2007.

Information sharing with India

Swiss authorities have consistently maintained that assets held by Indian residents in Switzerland should not automatically be considered black money.

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 also shared details of accounts linked to suspected financial wrongdoing after receiving prima facie evidence from Indian authorities. Such exchanges have taken place in hundreds of cases.

India's global ranking improves

Overall funds belonging to foreign clients in Swiss banks declined nearly 8 per cent in 2025 to CHF 1.05 trillion.

In terms of assets, Indian clients accounted for CHF 1.5 billion at the end of 2024, down nearly 6 per cent from the previous year.

Among foreign clients, the United Kingdom topped the list with CHF 192 billion in Swiss banks, followed by the United States with CHF 75 billion and France with CHF 63 billion.

India ranked 46th among countries with funds in Swiss banks, improving from 48th place a year earlier.

Among neighbouring countries, funds linked to Pakistan fell to CHF 257 million from CHF 272 million, while Bangladesh recorded a sharp 43 per cent increase to CHF 842 million.

The issue of alleged black money held in Swiss banks has remained politically sensitive in India, Pakistan and Bangladesh, although Swiss authorities continue to distinguish between legally held assets and illicit funds.

(With inputs from PTI)