On Monday, November 3, Dr. Aniruddha Malpani, a social network user on X, claimed that Zerodha was spending his money "for free" after learning that the platform's daily withdrawal cap was ₹5 crore. In his article, Malpani tagged Nithin Kamath, a co-founder of Zerodha.
The platform requires customers to withdraw more than that amount in order to submit a support ticket, according to screenshots included with the article.
"Hello Dr., your payout requests were processed yesterday," Kamath wrote in a direct response to the post earlier today, November 4. Like all other financial services companies, we must make sure that we have some safeguards in place when customers withdraw money for the protection of the integrity of our systems. As you can guess, there are a lot of possible problems that might occur throughout the withdrawal procedure, and we are unable to get our money back once it has been sent. Therefore, the barrier at which we ask clients to create tickets in order to withdraw is ₹5 crore.
"Hello Dr., your payout requests were processed yesterday," Kamath wrote in a direct response to the post earlier today, November 4. Like all other financial services companies, we must make sure that we have some safeguards in place when customers withdraw money for the protection of the integrity of our systems. As you can guess, there are a lot of possible problems that might occur throughout the withdrawal procedure, and we are unable to get our money back once it has been sent. Therefore, the barrier at which we ask clients to create tickets in order to withdraw is ₹5 crore.
Kamath's prompt explanation made the problem more understandable. The ₹5-crore threshold set by Zerodha does not serve as a cap or restriction on withdrawals; rather, it necessitates extra safeguards to guarantee accuracy and security. After verification, the money is handled just like any other payout.
The withdrawal cap for Zerodha
Investors may withdraw any amount, provided that there is a withdrawable balance in their trading account, according to the material on Zerodha's website.
Investors can submit a request straight from Console for withdrawals up to ₹5 crores. However, please create a ticket if an investor wants to withdraw more than ₹5 crores.
The withdrawal cap for Zerodha
Investors may withdraw any amount, provided that there is a withdrawable balance in their trading account, according to the material on Zerodha's website.
Investors can submit a request straight from Console for withdrawals up to ₹5 crores. However, please create a ticket if an investor wants to withdraw more than ₹5 crores.
Why do businesses have withdrawal restrictions?
These withdrawal restrictions apply to other brokerages and financial institutions, such as banks, and are not unique to Zerodha. Such checks are typical for high-value transactions in the financial services industry, particularly when reversals are technically impossible once cash have been transferred out.
In the face of thousands of transactions each day, these procedures assist prevent mistakes or fraudulent transactions while preserving system stability.
Reactions from netizens to Nithin Kamath's reply
Meanwhile, a number of users praised Kamath's response, praising the openness and promptness of the contact.
As a strong precaution, a user going by the pseudonym TradeWith Leo referred to the ₹5 crore restriction. I love the CEO's real-time answer, he added.
These withdrawal restrictions apply to other brokerages and financial institutions, such as banks, and are not unique to Zerodha. Such checks are typical for high-value transactions in the financial services industry, particularly when reversals are technically impossible once cash have been transferred out.
In the face of thousands of transactions each day, these procedures assist prevent mistakes or fraudulent transactions while preserving system stability.
Reactions from netizens to Nithin Kamath's reply
Meanwhile, a number of users praised Kamath's response, praising the openness and promptness of the contact.
As a strong precaution, a user going by the pseudonym TradeWith Leo referred to the ₹5 crore restriction. I love the CEO's real-time answer, he added.
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