Investor says Zerodha blocked funds; Nithin Kamath responds

A social media post accusing Zerodha of preventing a client from withdrawing funds sparked widespread debate online and prompted a swift response from the firm’s co-founder and CEO, Nithin Kamath.

Also Read: How to save taxes using HUF: Zerodha CEO Nithin Kamath explains

The exchange unfolded on X after investor Dr Aniruddha Malpani alleged that Zerodha was “using his money for free” by imposing a daily withdrawal limit.

Investor accuses Zerodha of blocking funds

On Monday (November 3), Dr Malpani shared screenshots claiming that Zerodha had restricted withdrawals to Rs 5 crore per day.

He wrote, "The Zerodha scam! They don't allow me to withdraw my own money from their account, saying the daily limit for withdrawal is ₹5 crores. They use my money for free! @zerodhaonline This is unfair."

Also Read: Zerodha co-founder Nikhil Kamath's 'rather rent a home than buy' comment sparks debate

Responding directly to the allegation on Tuesday (November 4), Kamath clarified that the withdrawal request had already been processed and defended the platform’s security and risk-control measures.

Nithin Kamath issues clarification

"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 checks in place when clients withdraw funds, Kamath said.

"As you can imagine, several potential issues can arise during the withdrawal process, and once funds are paid out, there’s no way for us to recover them. Hence, ₹5 crore is the threshold at which we ask customers to create tickets for withdrawal," he added.

Responding to Kamath’s post, Dr Malpani replied, “Yes, I understand. My point is that you are transferring the burden onto the user. Your system can easily flag high-value transactions, and your customer service team can email or phone the user to confirm that it’s valid. Why make me do the work?”

Social media reacts

The exchange quickly gained traction, with several users on X commenting on the clarification and commending Kamath’s prompt engagement.

One user wrote, "Kudos for processing Dr Malpani’s request swiftly. Perhaps AI-driven pre-verification could streamline UHNI flows without manual tickets? Zerodha keeps setting the bar."

Also Read: Top doctor's advice to Nithin Kamath: ‘Don’t follow random influencers’

Another remarked, "While risk management is key, using a supposed daily limit to effectively freeze client funds feels like overreach. Trust fades fast when you can’t access what’s rightfully yours, regardless of the reasoning."

A third quipped, "So, to maintain your system’s sanity, do we need to tag you on X every time we want to withdraw funds?” A fourth commented, “That’s mighty responsive, Nithin — great to see this! Restores my faith in Zerodha."

And one user joked, "Grok, prepare a step-by-step plan on how to become so rich that the CEO of a multi-million firm personally resolves my query. Make no mistakes."