Indians' funds in Swiss banks plunge 70% to hit four-year low of ₹9,771 crore
The Hindu
Funds parked by Indian individuals and firms in Swiss banks, including through local branches and other financial institutions, fell sharply by 70% in 2023
Funds parked by Indian individuals and firms in Swiss banks, including through local branches and other financial institutions, fell sharply by 70% in 2023 to a four-year low of 1.04 billion Swiss Francs (₹9,771 crore), annual data from Switzerland's central bank showed on Thursday.
The decline in aggregate funds of Indian clients with Swiss banks for the second consecutive year, after hitting a 14-year-high of CHF 3.83 billion in 2021, was largely driven by a sharp plunge in funds held through bonds, securities and various other financial instruments.
Besides, the amount in customer deposit accounts and funds held through other bank branches in India also declined significantly, the data showed.
These are official figures reported by banks to the Swiss National Bank (SNB) and do not indicate the quantum of the much-debated alleged black money held by Indians in Switzerland. These figures also do not include the money that Indians, NRIs or others might have in Swiss banks in the names of third-country entities.
The total amount of CHF 1,039.8 million, described by the SNB as 'total liabilities' of Swiss banks or 'amounts due to' their Indian clients at the end of 2023, included CHF 310 million in customer deposits (down from CHF 394 million at 2022-end), CHF 427 million held via other banks (down from CHF 1,110 million), CHF 10 million (down from CHF 24 million) through fiduciaries or trusts, and CHF 302 million as 'other amounts due to customers in form of bonds, securities and various other financial instruments (down from CHF 1,896 million).
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 2021, as per SNB data.
While all four components had declined during 2019, the year 2020 saw a significant plunge in customer deposits, while there was a surge across all categories in 2021. During 2022, only the fiduciaries segment saw an increase.
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