A social-media post alleging that Zerodha, one of India’s largest stockbrokers, was preventing a client from withdrawing funds went viral, prompting CEO and co-founder Nithin Kamath to step in and clarify the firm’s policies.
The social media user on X, named Dr Aniruddha Malpani, on Monday, November 3, alleged that Zerodha was using his money for “free” after being informed that the daily withdrawal limit on the platform was ₹5 crore. Malpani tagged Zerodha co-founder Nithin Kamath in his post.
Screenshots attached to the post showed that the platform required users to withdraw above that amount to raise a support ticket.
Responding directly to the post, Kamath earlier today, November 4, said, “Hi Dr, your payout requests were processed yesterday. We need to ensure, for the sake of our systems’ sanity (like all other financial services firms), that we have some checks in place when clients withdraw funds. As you can imagine, numerous potential issues can arise during the withdrawal process, and once funds are paid out, there is no way for us to recover them. Hence, ₹5 crore is the threshold at which we ask customers to create tickets to withdraw.”
Kamath’s quick clarification helped put the issue in perspective. Zerodha’s ₹5-crore threshold does not represent a cap or restriction on withdrawals, but requires additional checks and balances to ensure security and accuracy. Once verified, the funds are processed like any other payout.
Zerodha’s withdrawal limit
According to the information on Zerodha’s website, investors can withdraw any amount, subject to the availability of a withdrawable balance in their trading account.
For withdrawals up to ₹5 crores, investors can place a request directly from Console. However, if an investor wishes to withdraw more than ₹5 crores, please create a ticket.
Why do companies have withdrawal limit?
These withdrawal limits are not exclusive to Zerodha but are applicable to other brokerages and financial institutions like banks, etc. In financial services, such checks are common for high-value transactions, especially when reversals are technically impossible after funds are transferred out.
These process helps avoid errors or fraudulent transactions while maintaining system stability, especially amid thousands of transactions in a day.
Netizens react to Nithin Kamath’s response
Meanwhile, Kamath’s response drew praise from several users who appreciated the transparency and swift communication.
A user with the handle name TradeWith Leo called the ₹5 crore limit as a solid safeguard. He added: Loving the real-time CEO response!
Another user by the handle name @AnandRangachar2 tweeted that he is confident that “zerodha does the best thing for its customers”.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
