Indian deposits in Swiss banks down nearly 18% over last 10 years: Here’s why

Deposits of Indian customers in Swiss banks fell by around 18 per cent over the past decade, according to the latest figures released by the Swiss National Bank (SNB).

The data shows a drop from approximately 425 million Swiss francs in 2015 to 346 million Swiss francs in 2024.

Indian deposits fell after Covid-19 peak

The SNB data also showed that Indian deposits witnessed a sharp rise during the COVID-19 period, touching a 10-year high of around 602 million Swiss francs. However, the deposits started declining after the pandemic peak, ANI reported.

In 2023, deposits stood at 309 million Swiss francs, whereas in 2024, they only grew by 37 million Swiss francs. Despite this annual rise, the overall trend over the last decade remains downward.

Tightening regulations, increased scrutiny 

The downward trend of deposits in Swiss banks can be due to various reasons like tightening regulations, increased scrutiny, and changes in international financial transparency norms, said ANI.

The most significant drop was seen in deposits by American nationals. Their deposits in Swiss banks plunged from 64.2 billion Swiss francs in 2015 to 24.4 billion Swiss francs in 2024, a decline of about 62 per cent.

For India, the trend clearly shows that over the last decade, deposits by Indian nationals in Swiss banks have declined, although a temporary hike in deposits was seen during the pandemic in 2021, the news agency reported.

India not alone in downward trend

This declining trend in deposits is not unique to India. Several other countries also witnessed a reduction in funds deposited in Swiss banks by their nationals, the news agency reported.

Among major economies, deposits by UK nationals fell from 44 billion Swiss francs in 2015 to 31 billion Swiss francs in 2024.

Chinese deposits also saw a decline, reducing from 5.01 billion Swiss francs to 4.3 billion Swiss francs over the same period.

The neighbouring countries of India — Pakistan and Bangladesh—also saw a decline. Deposits held by Pakistani nationals in Swiss banks have witnessed a steep decline over the last ten years.

According to the data, deposits by Pakistanis stood at 947 million Swiss francs in 2015 but have dropped significantly to 241 million Swiss francs by 2024, a fall of nearly 75 per cent.

A similar trend was observed in the case of Bangladeshi nationals. Their deposits in Swiss banks declined from 48 million Swiss francs in 2015 to just 12.6 million Swiss francs in 2024, marking a drop of over 73 per cent, as per data cited by ANI.