Zerodha 'Scam'? Nithin Kamath Reacts To Investor On Rs 5 Crore Withdrawal Limit Allegations

An investor Dr Anirudha Malpani called out Zerodha, a top online broking platform, as a scam after alleging that he was unable to withdraw over Rs 5 crore from his Zerodha trading account.

Malpani, founder of Malpani Ventures, shared screenshots from his Zerodha account displaying Rs 42,92,98,198.10, as the total valuation with a used margin of Rs 24,46,44,888.30 and a withdraw-able balance of Rs 18,46,53,309.84.

“The Zerodha scam! They don't allow me to withdraw my own money from their account, saying the daily limit for withdrawal is Rs 5 crores. They use my money for free,” Malpani penned on X, tagging Zerodha CEO Nikhil Kamath, while calling the entire episode "unfair”.

Further, the investor shared a screenshot from the Zerodha's app in support of his argument. It read, "A maximum of Rs 5 crores can be withdrawn per day. For instant withdrawals, the request must be between Rs 100 and Rs 2,00,000 per day. The withdrawal limit is subject to the availability of a withdrawable balance in the trading account.”

Zerodha's support team responded to Malpani's post, informing him that withdrawals exceeding Rs 5 crore could be processed by raising a support ticket through their official portal.

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On this, Malpani furnished further proof by sharing the screenshot of the support ticket. After this, the Bengaluru-headquartered firm said, this issue was being reviewed.

This scam claim went viral after Zerodha Co-Founder Nithin Kamath reacted to it on X.

Responding to Dr Anirudha Malpani, Kamath 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, Rs 5 crore is the threshold at which we ask customers to create tickets to withdraw,” he said.

Zerodha co-founder Nithin Kamath then clarified that Malpani's payout requests had been processed and that the Rs 5 crore limit was part of standard operational checks to prevent systemic risks.

As of now, Zerodha allows withdrawals of up to Rs 5 crore per day, with instant withdrawals restricted to Rs 2 lakh and available between 9 am and 4 pm. These limits apply based on the available balance in a Zerodha users trading accounting.