How safe is our idle money with Zerodha

[nithin]

@viksins

Hello,
Sorry this is an old topic but I need to know whether you have switched over to Yes Bank recently or not? I did a funds transfer and in the statement I see that I received funds from Yes Bank and not HDFC which used to be the case earlier. Is it safe?

Recent transfer: NEFT/N2532107494XXXXX/ZERODHA B/YES BANK
In Mar 21: NEFT/N0702114364XXXXX/ZERODHA B/HDFC BAN.

We are using Yes Bank for fund withdrawals as they are processing it faster than HDFC.

@Maverick_Shrader

Even I have the same question, why put money in a troubled bank like yes bank

We are just using it to power withdrawals, so the money doesn’t actually sit in Yes Bank overnight.

[Ragavendran_V]

When a trader takes a position in Futures or short option, does the margin money get transferred to exchange and in turn released by exchange into Zerodha’s bank account only when the position is closed? Or does Zerodha move those margin funds to a separate account of its own?

“We are just using it to power withdrawals, so the money doesn’t actually sit in Yes Bank overnight.” Hope this means all the customer’s funds stay in HDFC Bank all the time except during fund withdrawal.

I think most of your customers may not mind even a 4 hour delay in fund withdrawal if it means everything is routed through safer banks like HDFC, ICICI, Axis, SBI etc.

[nithin]

@Ragavendran_V

When a trader takes a position in Futures or short option, does the margin money get transferred to exchange and in turn released by exchange into Zerodha’s bank account only when the position is closed? Or does Zerodha move those margin funds to a separate account of its own?

All margins are usually placed with the clearing corporations, and clearing corps don’t take Yes Bank FDs. So what is mentioned here isn’t really an issue.

Fund withdrawal account that we use, even if the bank goes bust the risk will be on us and not the customer.