Security or scam? Investor accuses Zerodha after Rs 18-crore withdrawal attempt blocked

A heated debate erupted online after Mumbai-based investor and IVF specialist Dr Aniruddha Malpani accused online brokerage Zerodha of preventing him from withdrawing funds from his trading account.

Malpani claimed that despite his account showing a withdrawable balance of over Rs 18 crore, the platform restricted him to Rs 5 crore per day, calling it a “scam” and alleging that Zerodha was using his money “for free”.

He posted screenshots showing an account value of Rs 42.9 crore, a used margin of Rs 24.4 crore, and a withdrawable balance of Rs 18.46 crore.

Zerodha’s withdrawal policy explained

As per Zerodha’s policy, users can withdraw up to Rs 5 crore per day, with instant withdrawals capped at Rs 2 lakh between 9 am and 4 pm.

For requests exceeding Rs 5 crore, users must raise a support ticket for manual review. The firm says this is a security measure to ensure the safe handling of high-value transactions.

After Malpani’s post gained traction, Zerodha’s support team responded publicly, stating that larger withdrawals could be processed through support tickets on the official portal.

Malpani confirmed that he had already done so and shared proof online. The company later assured him that his withdrawal request was under review.

Zerodha co-founder and CEO Nithin Kamath later clarified that Malpani’s payout requests had been processed. He said the Rs 5-crore cap was not a restriction, but an operational safeguard to prevent system errors or potential fraud.

Kamath explained that once large payouts are processed, they cannot be reversed, hence the threshold acts as a verification step. This, he said, protects both clients and the platform from costly mistakes.

Experts defend Zerodha’s withdrawal limits

Financial experts supported Zerodha’s explanation, calling the withdrawal limit a standard security practice, not a scam. They said banks, UPI systems, and trading platforms also impose similar limits to prevent fraudulent or accidental transfers.

They advised investors to plan large transactions in advance and to request higher limits if required, cautioning against labelling every security feature as a “scam” on social media.

What investors should note

The controversy has drawn attention to how trading platforms handle large-scale withdrawals. While Malpani’s complaint raised public concern, Zerodha’s clarification highlights that such limits are part of broader risk management systems across the financial sector.

For investors, the key takeaway is to understand withdrawal policies, verify processes, and plan ahead when moving large sums online.