Zerodha raises instant withdrawal limit to ₹5 lakh from ₹2 lakh; What investors need to know

Zerodha has increased the daily limit for instant withdrawals from ₹2 lakh to ₹5 lakh, allowing customers to transfer a larger amount of unused funds from their trading accounts to their linked bank accounts. The brokerage has also extended the facility’s availability to 9 am to 6 pm, including weekends and market holidays.

The changes are aimed at giving investors quicker access to their money without having to wait for regular withdrawal processing. The instant withdrawal facility will continue to be free.

Nithin Kamath, co-founder and chief executive officer of Zerodha, announced the changes in a post on X on 3 November. He said the brokerage had processed nearly ₹1 lakh crore through instant payouts since introducing the facility in 2024.

“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 revised limit means customers can now withdraw up to ₹5 lakh through a single instant withdrawal request each day, compared with the earlier ceiling of ₹2 lakh.

How does Zerodha’s instant withdrawal facility work?

Zerodha’s instant withdrawal facility allows eligible customers to transfer money from their trading accounts to their primary linked bank accounts without waiting for the regular withdrawal cycle.

Customers can request a minimum of ₹100 and a maximum of ₹5 lakh a day. Only one instant withdrawal request is permitted per day. The facility is available between 9 am and 6 pm, including weekends and market holidays, at no additional cost.

To use the service, customers need to log in to their Zerodha account, go to the Funds section, select the instant withdrawal option, enter the amount and confirm the request.

However, the facility comes with certain eligibility conditions. Money deposited into a trading account on the same day cannot be withdrawn instantly. Customers must also have a sufficient withdrawable balance after accounting for their open positions and pending orders.

Certain sell transactions, including eligible equity cash-and-carry (CNC) and margin trading facility (MTF) sell orders, are treated differently under the brokerage’s withdrawal rules.

Is there a limit on regular withdrawals from Zerodha?

The ₹5 lakh ceiling applies only to instant withdrawals. It does not mean customers can withdraw only ₹5 lakh a day from their Zerodha accounts.

Investors can use the regular withdrawal facility to transfer larger amounts, subject to their available withdrawable balance.

According to Zerodha’s support documentation, customers can place regular withdrawal requests of up to ₹5 crore through its Console platform. For amounts exceeding ₹5 crore, they need to raise a support ticket with the brokerage.

Regular withdrawals follow the brokerage’s normal processing schedule and are not subject to the instant facility’s operating hours.

This distinction is important for investors who need to access larger sums from their trading accounts. While instant withdrawals offer quicker access to money, regular withdrawals remain an option for those who do not need immediate transfers.

What should Zerodha investors keep in mind?

The higher instant withdrawal limit does not mean the entire balance displayed in a trading account is available for immediate transfer. The amount investors can withdraw depends on their actual withdrawable balance.

Money deposited into the account on the same day is not eligible for instant withdrawal. Similarly, proceeds from share sales may be subject to settlement timelines before they become available for withdrawal.

Investors should also check whether pending orders, open positions or margin requirements affect their available balance before placing a request.

If an instant withdrawal request fails, customers cannot submit another instant withdrawal request on the same day. They will have to use the regular withdrawal facility instead.

For investors who frequently move money between their bank and trading accounts, the higher limit and extended operating hours offer greater flexibility. However, the change does not alter the settlement timelines or the conditions governing when funds become withdrawable.