Introduction
Aniruddha Malpani, an investor suspected of being blocked by Zerodha, had Rs. 42.9 cr. Withdrawal, by calling it a scam. Moreover, Nithin Kamath, the CEO, clarified Rs. 5 cr. cap limit in its security check.
Zerodha Scam
- A social media post related to Zerodha scam went viral, which suggested that Zerodha, one of the leading stockbrokers, was protecting a client from withdrawing his funds, prompting co-founder and CEO Nithin Kamath to enter into a clarification.
- The post created by Mumbai-based investor and IVF specialist Dr. Anirudha Malpani accused Zerodha of utilizing his money for free after he was informed that the platform possesses a regular withdrawal limit of approximately Rs. 5 cr.
- The screenshots have been shared by Malpani showing that the system needed him to raise a support ticket for any type of withdrawal surpassing that amount.
- The screenshot shared supported the explanation that a maximum of Rs. 5 cr. could be withdrawn each day. For example, the withdrawal requests should be between Rs. 100 and Rs. 2,00,000 each day. The Zerodha withdrawal limit of is subject to the accessibility of a withdrawal balance in the trading account.
- He also claimed that in spite of having a withdrawable balance of approximately Rs. 42.9 cr., he was not able to take out more than Rs. 5 cr. in a day, and stated this as a scam.
- This particular post instantly acquired grip among the investors and traders, raising a debate on withdrawal procedures at online brokerages.
What is the response of Nithin Kamath, Zerodha CEO on the withdrawal?
Reacting to the allegations, Nithin Kamath clarified that the payout requests of Malpani have already been processed and that the amount is on the verge of Rs. 5 cr. was regarded as a typical internal check, rather than a limitation on client funds.
He also stated that a number of possible issues could occur throughout the withdrawal procedure, and after the funds are paid out, there is no path to recover them. Thus, Rs. 5 cr. is considered to be the verge at which consumers are being asked to generate Zerodha tickets in order to withdraw.
Why do brokerages possess a withdrawal entrance?
- As per Zerodha’s website, clients could withdraw any amount accessible in their trading account.
- Withdrawals up to Rs. 5 cr. cap could be directly made via the Console platform, whereas huge payouts need a support ticket for manual confirmation.
- Such entrances are usual throughout the financial sector, which involves banks along with other brokerages. They assist in protecting against compliance issues, deceitful transactions, and functional glitches that could occur while processing high-value transactions.
Statement by Ajay Rotti: The truth behind the Zerodha Scam has been stated by the CEO and founder of Tax Compass, Ajay Rotti, defended Zerodha’s policy as an essential security measure rather than a scam. He explained that sale limits are present throughout financial systems, which involve UPI and bank transfers to ensure safety at the time of massive withdrawals.
He also added that people are required to become highly aware of such limits and plan their transactions if they seek to do so online. There is always an option to maximize such limits and those that need to be utilized.
Rules of Zerodha withdrawals: Zerodha allows withdrawals of up to Rs. 5 cr. each day, with immediate withdrawals restricted to Rs. 2 lakh and accessible between 9 am and 4 pm. These Zerodha transfer limits HNI are applied based on the accessible balance in the trading account of the user.
Summary
After the confirmation of Malpani that he had submitted the ticket already and shared a screenshot in the form of a proof, the organization guaranteed him that the issue was being reviewed.
