Indian Deposits in Swiss Banks Reportedly Tripled; Just 338 Crore Rupees Recovered Under Black Money Act

New Delhi: Indian deposits in Swiss banks have reportedly tripled in recent times, sparking fresh concerns about black money and illicit financial flows.

Responding to an unstarred question raised in the Rajya Sabha by CPI M MP Dr. John Brittas, the Ministry of Finance provided clarifications while also revealing a striking mismatch between black money tax demands and actual recovery.

Citing media reports based on Swiss National Bank (SNB) data, Union Minister of State for Finance Pankaj Chaudhary acknowledged that Indian -linked deposits in Swiss banks showed a sharp rise in 2024 compared to the previous year.

However, the Ministry emphasised that these figures encompass various financial instruments, including customer deposits, inter bank liabilities, and deposits made through foreign branches. The Swiss authorities themselves, the government noted, have cautioned against interpreting SNB data as a direct indicator of black money held by Indian residents.

In the same reply, the government disclosed that over 35,000 crore rupees has been demanded under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, but only 338 crore rupees has been recovered as of March 31, 2025. Specifically, tax demands amounting to 21,719 crore rupees and penalties worth 13,385 crore rupees were raised between July 2015 and March 2025. Despite the scale of the demands, the Ministry admitted that a country-wise breakup of the cases is not maintained.

The low recovery rate, less than 1%, highlights serious questions about the effectiveness of the Black Money Act in tackling offshore tax evasion nearly a decade after its enactment.

While the government continues to stress its commitment to combating black money, the data presented in Parliament has intensified concerns about enforcement gaps, lack of transparency in foreign asset monitoring, and the broader challenges India faces in curbing illicit financial outflows.