Key Points
- Indian-linked funds in Swiss banks nearly tripled in 2024 to around ₹37,600 crore the highest since 2021.
- Only about 11% of this total is from direct customer deposits; most is via other banks and financial entities.
- Centre clarifies: SNB data does not equate to “black money” majority of deposits are legitimate or held by entities like NRIs.
- Since the Black Money Act 2015, about ₹4,164 crore in undisclosed foreign assets were declared and penalized.
- India receives annual financial information on Swiss accounts through global exchange agreements.
New Delhi: Indian-linked deposits in Swiss banks surged to 3.54 billion Swiss francs (nearly ₹37,600 crore) in 2024, a dramatic rebound after a steep 70% drop the previous year. This figure, revealed in the annual report by the Swiss National Bank (SNB), triggered heated debate in Parliament over the nature and legality of these holdings.
A Threefold Surge: Where Does the Money Come From?
- Most of the increase (over 85%) is through bank channels, not individuals. Out of the total, only ₹3,675 crore is in direct customer deposits, up 11% from last year just a tenth of all Indian-linked funds. The remaining funds are spread across other banks (₹32,000 crore), fiduciaries/trusts (₹436 crore), and bonds/securities (₹1,500 crore).
- The latest surge makes 2024 the highest point since 2021 and puts India 48th globally by scale of Swiss deposits, up from 67th the year before.
Govt Stance: Don’t Conflate All Swiss Deposits with Black Money
Responding to Parliament concerns, the Ministry of Finance said:
“The SNB data includes customer deposits, other liabilities, amounts owed to different banks, and deposits in foreign branches. It is incorrect to assume the entire amount is ‘black money’ held by Indian citizens in Switzerland.”
Swiss authorities also reiterate that the SNB statistics should not be used to estimate black money these funds include both individual and institutional assets, including those held legally by NRIs and firms. There are also legitimate financial reasons for Indians to hold Swiss accounts, such as estate planning, currency hedging, and international business deals.
What About ‘Black Money’ Recovery?
After the Black Money Act of 2015, India implemented a one-time compliance window that saw 684 disclosures revealing ₹4,164 crore in undisclosed foreign assets. Tax and penalties recovered amounted to ₹2,476 crore. Since 2019, India has been getting annual information on Indian account holders in Swiss banks through the automatic exchange of information (AEOI) arrangement.
Having a Swiss Bank Account Is Not Illegal
The government underscored that merely holding an account in Switzerland is not a crime. What matters is whether the funds are lawfully disclosed and taxes are paid in India. The era of secrecy is fading: Switzerland now exchanges detailed financial information with India and over 100 countries, aiding authorities in tracking tax evasion.
- The massive jump in Swiss bank holdings is not proof of surging black money; most funds are through banks and largely above board.
- India is tightening oversight and has recovered over ₹4,000 crore in undisclosed foreign assets.
- Swiss banks, while still attractive for legal reasons, now routinely report account details to Indian authorities.
The hotly watched numbers may stir political debate, but the government, global regulators, and even Swiss bankers agree: you can’t simply label all Indian money in Switzerland as “black money.”
