Funds linked to Indian clients in Swiss banks declined by more than 8% in 2025 to 3.25 billion Swiss francs (approximately Rs 36,793 crore), according to annual data released by the Swiss National Bank (SNB) on Thursday, June 18, 2026. Despite the overall drop, deposits held directly in customer accounts rose sharply, increasing by over 50% to 524 million Swiss francs (around Rs 6,000 crore), although they represented only about 16% of the total amount.
Composition Shift: Institutional vs. Direct Holdings
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. According to the SNB, 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.
| Category | 2025 Value (Swiss francs) | Change vs 2024 |
|---|---|---|
| Total Indian-linked funds | 3.25 billion | -8% |
| Customer deposits (direct) | 524 million | +50% |
| Funds through banks/financial institutions | 2.6 billion | -15% |
| Fiduciaries & trusts | 18.6 million | -55% |
| Other liabilities (bonds, securities) | 105.7 million | Decline |
BIS Data Shows Divergent Trend
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% in 2025 to USD 89.73 million (about Rs 780 crore), continuing a recovery seen over the past two years.
Historical Context and Tax Transparency
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. 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.
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.
Switzerland and India have been exchanging financial account information automatically since 2018 under a tax transparency framework, with annual data-sharing continuing since 2019.
Country Rankings and Regional Neighbors
The SNB data also showed that total funds belonging to foreign clients in Swiss banks declined nearly 8% 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% increase to 842 million Swiss francs.
Implications for Treasury and Trade Finance
For CFOs and treasury professionals, the rise in direct customer deposits may signal increased regulatory compliance and transparency, leading to a shift away from intermediation. The sharp decline in funds held through other banks and financial institutions could affect trade finance channels that rely on correspondent banking relationships. The overall drop in foreign client funds in Swiss banks—down 8% to 1.05 trillion Swiss francs—reflects broader trends in the European banking landscape. However, the divergent BIS data, showing a 20% rise in deposits, suggests that Indian individuals are still increasing their direct holdings in Swiss banks, possibly driven by the automatic exchange of information regime that has been in place since 2018.
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