Indian Funds In Swiss Banks Rise To 14-Year High, UK Tops List For Foreign Clients

The UK remained at the top for foreign clients' money in Swiss banks at CHF 379 billion followed by the US at the second spot with CHF 168 billion.

Indian Currency

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New Delhi: Indian funds in Swiss banks jumped to a 14-year high in 2021 to record 3.83 billion Swiss francs (over Rs30,500 crore), which is the second consecutive year of rise. The funds are parked by Indian individuals and firms in Swiss banks, including through India-based branches and other financial institutions. There has been a sharp surge in holdings via securities and similar instruments while customer deposits rose as well, annual data from Switzerland's central bank showed on Thursday.

Interestingly, the money held in Indian customers' savings or deposit accounts witnessed a seven-year rise of about Rs 4,800 crore, reversing a two-year declining trend, reported news agency PTI. The highest component of CHF 2,002 million (up from CHF 1,665 million) was 'other amounts due to customers' in form of bonds, securities and various other financial instruments.

The total amount stood at a record high of nearly 6.5 billion Swiss francs in 2006, after which it has been mostly on a downward path, except for a few years including in 2011, 2013, 2017, 2020 and now in 2021, as per the Swiss National Bank (SNB) data.

It is to be noted that all four components declined during 2019. A significant plunge in customer deposits was also witnessed in 2020, while a surge has been witnessed across all categories in 2021. The amount mentioned are official figures reported by banks to the SNB. However, it does not indicate the quantum of the most debated alleged black money held by Indians in Switzerland.

It also does not include the amount Indians, NRIs or others might have in Swiss banks in the names of third-country entities. 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.

Which countries topped the charts?

The UK remained at the top for foreign clients' money in Swiss banks at CHF 379 billion followed by the US at the second spot with CHF 168 billion. These are the only two countries with 100-billion-plus client funds. Others in the top 10 were West Indies, Germany, France, Singapore, Hong Kong, Luxembourg, Bahamas, the Netherlands, Cayman Islands and Cyprus.

India was placed at 44th place surpassing countries including Poland, South Korea, Sweden, Bahrain, Oman, New Zealand, Norway, Mauritius, Bangladesh, Pakistan, Hungary and Finland. Among BRICS nations, India stood behind Russia (15th place) and China (24th), but above South Africa and Brazil.

Others placed above India included the UAE, Australia, Japan, Italy, Spain, Panama, Saudi Arabia, Mexico, Israel, Taiwan, Lebanon, Turkey, Austria, Ireland, Greece, Bermuda, Marshall Islands, Liberia, Belgium, Malta, Canada, Portugal, Qatar, Egypt, Thailand, Kuwait and Jordan.

Pakistan saw an increase in funds of its citizens and enterprises to CHF 712 million, while that for Bangladesh rose to CHF 872 million. Just like in India, the issue of alleged black money in Swiss banks has been a political hot potato in the two neighbouring countries as well.