India’s funds in Swiss banks jump by 50 percent, more than Rs30,000 Crore, highest in 14 years
In 2021, the amount of money parked in Swiss banks by Indian individuals and businesses, including through India-based branches and other financial institutions, reached a 14-year high of 3.83 billion Swiss francs (about Rs 30,500 crore).
Annual data from Switzerland’s central bank showed on Thursday that this was owing to a strong increase in holdings via securities and similar instruments, although client deposits also increased, according to reports.
The increase in total money held by Indian clients with Swiss banks, from 2.55 billion Swiss francs (Rs 20,700 crore) at the end of 2020 to 2.55 billion Swiss francs (Rs 20,700 crore) at the end of 2021, is the second year in a row.
Furthermore, the amount of money in Indian clients’ savings or deposit accounts reached a seven-year high of around Rs 4,800 crore, reversing a two-year downward trend.
The SNB defined the total amount of CHF 3,831.91 million as “total liabilities” of Swiss banks or “amounts due to” their Indian clients at the end of 2021, which included CHF 602.03 million in customer deposits (up from CHF 504 million at the end of 2020), CHF 1,225 million held via other banks (up from CHF 383 million), and CHF 3 million held through fiduciaries or trusts (up from CHF 2 million).
Other amounts payable to clients in the form of bonds, securities, and various other financial instruments had the greatest component of CHF 2,002 million (up from CHF 1,665 million).
The amount of money in Swiss banks is expected to nearly triple by 2020, reaching 2.5 billion Swiss francs. Last year, the government clarified that consumer deposits had really decreased since the end of 2019. However, data reveals that customer deposits have increased from 503 million Swiss francs in 2020 to 602 million Swiss francs in 2021, thus the government may not have the same excuse this year. Other customer obligations have risen from 1.6 billion Swiss francs to 2 billion Swiss francs.
