Instant Redemption on Coin

Can we expect Instant Redemption on Zerodha coin anytime soon?
Don’t really want to open accounts on different apps or websites.
If this feature was available was on coin then it would be great @nithin

Instant redemption isn’t really possible, every fund has a different settlement cycle.

@Bhuvan + +

If you are referring to instant redemption of liquid funds, then afraid this isn’t possible because MFs on Coin are held in demat. Having said, liquid funds now have a graded exit load, instant redemption becomes a little less attractive:

I use liquid funds for emergency corpus and a missing instant redemption feature can be a deal breaker. I think things like instant redemption and STP/SWP and cannot transact using AMC or other platforms are becoming more and more against coin

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@nithin @Bhuvan If I have understood the query correctly, @Abhranil_Dutta_majum is asking for Instant Redemption for those select funds which redeem as early as 30 minutes.

Following is the list of those funds:-

  1. Nippon India Liquid Growth Direct Plan
  2. Aditya Birla Sun Life Liquid Growth Direct Plan
  3. PGIM India Insta Cash Growth Direct Plan
  4. Axis Liquid Growth Direct Plan
  5. ICICI Prudential Liquid Growth Direct Plan
  6. Principal Cash Management Growth Direct Plan

In the above funds, one can get the redemption amount in their bank account in about 30 minutes, 24x7, even on weekends and days when the market is closed.

Just for this purpose of instant redemption, one may have to open an account in those 3rd party competitor websites and invest in non-demat format.

It would be great if somehow this feature is made available for Demat format also. Just thinking so because NEFT transfer is already 24x7 available. So if there is some way to make this instant redemption feature available, it would stop such people from moving away from Coin to invest in those 3rd party websites (non-Demat) for this sole purpose of instant redemption.

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I know @nithin has said many times it’s not possible through them, but thought it is best to illustrate here why it makes a huge huge difference. If I redeem 50k in the DSP liquidity fund directly on DSP App around 5pm on a Friday it hits my bank account immediately in less than a minute. If I do the same on Coin, I think the earliest my bank account can get credited is Wednesday (or surely not before Tuesday?!) (considering that I don’t have HDFC bank account). Those 5 days really make a huge difference.

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On that note, I would love to have the redemption proceeds directly in my bank account rather than through Zerodha. I know you had said on some forum that you were working on that, albeit a couple of years back. Any update on that?
Secondly, I also know you were working on instant withdrawal up to 50k from an Account through IMPS. Any update on that? That way we don’t have to rely on when HDFC Bank implements the NEFT bit,at least up to 50k which is I think a decent amount for emergency!

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@nithin yourself or anyone else you think may be able to answer above? @Bhuvan

The last 2 to 3 months have been quite chaotic. All focus has been to handle the sudden increase in scale and volatility. This instant withdrawal etc has gotten pushed back, we will soon start working on it. Can’t give a date yet.

Redemption proceed directly to your account is again currently not possible.


A quasi-auto-credit to bank a/c can be achieved upon redeeming units. Sharing a mock of the same.

Only a check-box is required just before the redeem button, so the user can decide whether he needs the redemption amount in the bank a/c or not. As soon as the redemption amount is credited to the trading a/c, a script running as a background process triggers a command to withdraw the said amount to the user’s bank a/c.

This helps as the user doesn’t have to check manually if the AMC has credited the redemption amount to the trading a/c or not. Also, the user after clicking the redeem button doesn’t have to do anything manually.

On the front end sure it looks that simple :slight_smile: But what happens in the backend is quite complex. Anyways, this isn’t possible for now. We’ll definitely look into it down the line.

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@Bhuvan @nithin (Sorry to bug you with this silly request, but would love to hear your perspective)

Any updates on this? Waiting for liquid fund proceeds to be credited to the account is really bad, especially on the weekends.

  • I understand the complexity the debit of liquid fund units on the same day from the Demat account brings in, but it would be really helpful to at least get like 80% margin on the same day. Since liquid funds are 99.999% risk-free that also does not add significant additional risk to the broker. I agree we can’t ask for everything, but something like this could really be super useful in case an investment opportunity arises and the user can place a redeem order before 1:30PM to utilize it. We also can’t cancel a processing order on Coin, so the redeem transaction once goes into the “processing” mode, is guaranteed to be added into the funds.
  • Even being able to redeem liquid fund units on weekends could be really helpful. A lot of investors can then rotate the funds on weekends and plan ahead. Without the instant redeem functionality, the demat liquid funds don’t help serve the emergency cash requirements, especially on weekeds.
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Given that we offer MFs in demat form, this isn’t really possible. However, we are working on enabling instant withdrawals, will take some time but that should take care of this.