Indian money in Swiss banks dips to CHF 3.25 bn, Pg17

Key Highlights:

• Indian money in Swiss banks decreased by over 8% in 2025.
• The total amount stood at 3.25 billion Swiss Francs (approximately Rs 36,793 crore).
• This decline was primarily due to a fall in funds held through local branches and other financial institutions.
• However, money in customer accounts of individual and institutional clients rose sharply by over 50% to 524 million Swiss Francs.
• The annual data was released by Switzerland’s central bank, the Swiss National Bank.

Detailed Insights:

• The bulk of the funds, 2.6 billion Swiss Francs, was held as 'amounts due to banks' (funds through other banking and financial institutions), which saw a nearly 15% decline.
• Funds held through fiduciaries and trusts also significantly decreased by 55% to 18.6 million Swiss Francs.
• The Swiss National Bank clarifies that these figures represent total liabilities of Swiss banks towards Indian clients and should not be equated with alleged "black money".
• India and Switzerland have an Automatic Exchange of Information framework in place since 2018, facilitating annual data sharing to combat tax evasion.
• A Double Taxation Avoidance Agreement (DTAA) between India and Switzerland aims to prevent income from being taxed in both countries.
• The overall dip in 2025 follows a significant three-fold increase in 2024, when Indian-linked funds in Swiss banks had surged to 3.5 billion Swiss Francs.

Key Concepts Involved:

• Swiss National Bank (SNB): The central bank of Switzerland, responsible for monetary policy and financial stability.
• Swiss Franc (CHF): The official currency of Switzerland and Liechtenstein.
• Automatic Exchange of Information (AEOI): An international standard for the automatic exchange of financial account information between tax authorities of participating countries.
• Double Taxation Avoidance Agreement (DTAA): A bilateral agreement between two countries to prevent income earned in one country from being taxed in both countries.
• Black Money: Income acquired through illegal means or legitimate income not declared to tax authorities.