Indian funds in Swiss banks plummet ₹9,771 crore in 2023
What's the story
Funds held by Indian individuals and companies in Swiss banks have significantly decreased by 70% in 2023. This decline marks a four-year low of 1.04 billion Swiss Francs (CHF), equivalent to ₹9,771 crore, per the annual data from Switzerland's central bank. The drop was primarily due to a sharp decline in funds held through bonds, securities, and other financial instruments. This is the second consecutive year of decline after the funds reached 14-year high of CHF 3.83 billion in 2021.
Figures
Total liabilities by 2023-end
The total amount at the end of 2023, described as 'total liabilities' of Swiss banks or 'amounts due to' their Indian clients, included CHF 310 million in customer deposits (down from CHF 394 million by 2022-end). The figures also comprised CHF 427 million held via other banks (down from CHF 1,110 million), CHF 10 million (down from CHF 24 million) through trusts/fiduciaries, and CHF 302 million as 'other amounts' (down from CHF 1,896 million).
Statistics
'Locational banking statistics' show decline in funds
The 'locational banking statistics' of the Bank for International Settlement (BIS) showed a drop of nearly 25% during 2023, in such funds to $70.6 million (₹663 crore). This figure takes into account, loans and account deposits of Indian non-bank clients of Swiss-domiciled banks. Swiss authorities have always maintained that assets held by Indian residents cannot be considered as 'black money.'
Active support
Swiss authorities support India's fight against tax evasion
Swiss authorities have been actively supporting India in its fight against tax fraud and evasion since 2018. This support began when an automatic exchange of information in tax matters between the two countries was enforced.