Why Indians continue to park their money in Swiss banks

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Decades ago, Bollywood movies familiarised many in India with scenic Switzerland and secretive Swiss bank accounts. But, decades later, Indians still continue to park their money in Swiss financial institutions. What's the big draw? read more
Swiss authorities say they actively support India in the fight against tax fraud and evasion. AFP
The years may go on but some things never change.
It was Bollywood movies that familiarised many in India with scenic Switzerland and secretive Swiss bank accounts decades ago.
But Indians still continue to park their money in Swiss banks.
But what happened? What do we know? Why is this?
Let's take a closer look:
What happened?
According to the Swiss National Bank (SNB), Indians deposited 3.5 billion Swiss francs (CHF), around 37,600 crore, in 2024 alone.
This is the highest level since 2021, when the amount of funds deposited by Indians hit a 14-year high of 3.83 billion Swiss francs.
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Of this, 3.02 billion (CHF) came from other banks, and 135 million (CHF) from bonds and securities.
The money deposited directly cut by individual customers rose 11 per cent to 346 million CHF.
This comprises around 10 per cent of the total money deposited.
This comes after the deposits in 2023 by Indians plunged to 1.04 billion Swiss francs – the lowest level since 2020.
However, this still remains short of the all-time high of 6.5 billion CHF way back in 2006.
It was Bollywood movies that first familiarised many in India with scenic Switzerland and Swiss bank accounts. Reuters
It is important to note that this data comes from the official reports.
It does not include the black money which is deposited in Swiss bank accounts.
India has long witnessed controversy surrounding black money parked in Switzerland.
Political parties have for years vowed to bring this money back to India.
Why is this?
Experts say there are many reasons for this.
First, Switzerland has positioned itself, and is widely seen, as a neutral country.
Thus in times of war unrest it is seen as a safe bet to park your money in Switzerland.
The country also has excellent laws when it comes to offshore trusts – thus allowing the super-wealthy to save millions on their taxes.
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The Swiss francs as a currency is also generally considered a stable and reliable.
Swiss authorities have insisted that assets held by Indian residents in Switzerland cannot be considered 'black money.'
They say they actively support India in its fight against tax fraud and evasion.
Authorities in India and Switzerland have been exchanging information about taxation since 2019.
This came after the two countries signed the Automatic Exchange of Information (AEOI) agreement in 2018.
Swiss authorities have provided detailed financial information on all Indian residents having accounts with Swiss financial institutions since 2018.
Switzerland has also been actively sharing details about accounts of Indians suspected to have indulged in financial wrongdoings after the submission of prima facie evidence.
Such exchange of information has taken place in hundreds of cases thus far.
The UK saw the most money in Swiss banks at CHF 222 billion.
Then came the US US with CHF 89 billion and West Indies (CHF 68 billion).
Germany, France, Hong Kong, Luxembourg, Singapore, Guernsey and the UAE were all next.
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India, meanwhile, was way down at 48th place.
India was 67th at the end of 2023 and 46th place at the end of 2022.
Pakistan also saw a dip to CHF 272 million (from CHF 286 million), while Bangladesh witnessed a sharp increase from CHF 18 million to CHF 589 million.
With inputs from agencies