Zerodha's Nithin Kamath clarifies viral claim over Rs 5 crore fund withdrawal cap
Zerodha co-founder Nithin Kamath responded to a viral post by investor Dr. Aniruddha Malpani, who alleged the platform blocked his fund withdrawal beyond Rs 5 crore. Kamath clarified the cap is a security safeguard, not misuse, swiftly addressing user concerns.
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A social media post alleging that Zerodha was restricting a client’s fund withdrawals sparked widespread discussion online this week, prompting a prompt and transparent clarification from the brokerage’s CEO and co-founder, Nithin Kamath.
The Zerodha scam !
— Dr Aniruddha Malpani, MD (@malpani) November 3, 2025
They don't allow me to withdraw my own money from their account ,saying the daily limit for withdrawal is Rs 5 crores . They use my money for free !@zerodhaonline
This is unfair @nikhilkamathcio pic.twitter.com/QgEborsDxP
The controversy began when investor Dr. Aniruddha Malpani took to X on Monday, accusing Zerodha of “using his money for free” by capping daily withdrawals at Rs 5 crore.
“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,” Dr. Malpani wrote, sharing screenshots that quickly went viral.
As the post gained traction, users began questioning the platform’s policies, with some expressing concern over fund access and withdrawal procedures. Within hours, Kamath personally responded to the allegations, offering a detailed explanation to clarify the situation.
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 some checks in place when clients withdraw funds
— Nithin Kamath (@Nithin0dha) November 4, 2025
As you can imagine, numerous potential issues can arise during… https://t.co/dfrj56Hyxi pic.twitter.com/8hhCW0DRFO
“Hi Dr, your payout requests were processed yesterday,” Kamath wrote in his response. “We need to ensure, for the sake of our systems’ sanity (like all other financial services firms), that we have some checks in place when clients withdraw funds. As you can imagine, numerous potential issues can arise during the withdrawal process, and once funds are paid out, there is no way for us to recover them. Hence, Rs 5 crore is the threshold at which we ask customers to create tickets to withdraw.”
Kamath’s intervention was widely praised online. Many users lauded his quick response and professionalism, calling it an example of leadership transparency in the fintech space.
Comments such as “That’s mighty responsive, Nithin” and “Restores my faith in Zerodha” reflected the overwhelmingly positive sentiment on the platform.
