Zerodha raises instant withdrawal limit to ₹5 lakh: Nithin Kamath says ₹1 lakh crore paid out free

Zerodha co-founder and CEO Nithin Kamath has announced a major upgrade to the brokerage's instant withdrawal facility, increasing the daily limit from ₹2 lakh to ₹5 lakh and extending its availability to weekends and market holidays. Kamath said the platform has processed nearly ₹1 lakh crore in instant payouts since launching the facility in 2024, without charging customers.

In a post on X on November 3, Kamath highlighted the scale of instant withdrawals processed by Zerodha and the company's decision to offer greater flexibility to investors accessing unused trading funds.

"We've increased our instant withdrawal limit from ₹2 lakh to ₹5 lakh. It's now available from 9 AM to 6 PM, including weekends and market holidays. Since 2024, we've processed nearly ₹1 lakh crore in instant payouts, completely free," Kamath said.

The announcement means Zerodha customers can now transfer up to ₹5 lakh daily from their trading accounts to their primary linked bank accounts through the instant withdrawal facility, compared with the earlier ceiling of ₹2 lakh.

The facility will remain free, allowing investors to access eligible funds without waiting for the brokerage's regular withdrawal processing cycle.

What has changed for Zerodha customers?

Under the revised rules, customers can request instant withdrawals between 9 am and 6 pm on all days, including Saturdays, Sundays and market holidays.

The minimum withdrawal amount remains ₹100, while the maximum has increased to ₹5 lakh per day. However, customers can make only one instant withdrawal request daily.

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To access the facility, users must log in to their Zerodha account, navigate to the Funds section, select instant withdrawal, enter the amount and confirm the transaction.

The higher limit could benefit investors who frequently transfer surplus funds between their trading accounts and bank accounts.

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Can investors withdraw their entire trading balance?

Despite the increased limit, not all funds displayed in a trading account are necessarily eligible for instant withdrawal.

Money deposited on the same day cannot be withdrawn instantly. Similarly, proceeds from share sales may remain subject to settlement requirements.

Open positions, pending orders and margin obligations can also reduce the amount available for withdrawal.

Customers must therefore check their actual withdrawable balance before submitting a request.

Importantly, if an instant withdrawal request fails, investors cannot place another instant request that day and must instead use the regular withdrawal facility.

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What about withdrawals exceeding ₹5 lakh?

Kamath's announcement does not restrict customers from withdrawing larger amounts through Zerodha's regular withdrawal system.

According to the brokerage's support documentation, investors can request regular withdrawals of up to ₹5 crore through its Console platform. Amounts exceeding ₹5 crore require a support ticket. Unlike instant withdrawals, these transactions follow standard processing schedules.