Unused funds in your Zerodha trading account are not held indefinitely. They are regularly returned to your registered bank account as part of a quarterly settlement process, which ensures transparency and compliance with regulatory requirements.
Understanding Zerodha's Fund Settlement
Zerodha, like other brokers, performs periodic settlements to transfer any excess unutilized funds back to clients. This process is mandated by regulators to protect client funds and ensure that money not actively used for trading remains in the client's bank account.
Key Aspects of Fund Payouts:
- Frequency: The settlement is conducted on a quarterly basis. This means that funds lying unused for a period are reviewed and transferred back every 90 days.
- What is Returned: All excess unutilized funds from the last quarter (90 days) are identified and processed for transfer. This refers to money in your trading account that hasn't been used for trades or kept as margin for open positions.
- How Funds are Returned: The transfer of these funds back to your linked bank account is facilitated through secure electronic payment methods.
Transfer Methods and Timings
Zerodha uses standard banking channels to ensure your funds reach you efficiently:
| Transfer Method | Description | RBI Acceptance Timings (Approx.) |
|---|---|---|
| NEFT | National Electronic Funds Transfer – suitable for smaller amounts. | Until 07:00 PM |
| RTGS | Real-Time Gross Settlement – generally used for larger, high-value transfers. | Until 06:00 PM |
On the day of settlement, the funds are debited from your trading account and credited to your registered bank account. The exact crediting time depends on your bank's processing timelines after Zerodha initiates the transfer.
This systematic return of unused funds ensures that your money is not unnecessarily held by the broker and remains accessible in your personal bank account.
