Penalty over missed SIP

Does Zerodha also levy penalty over missed SIP due to insufficient balance provided if SIP is not paused or cancelled.

No, there is no penalty if you miss your SIP.

The news article says" bank", Not broker.

Example - If you place a e mandate for 10k but in the savings you have only 10rs. This is when a penalty will be levied by the “bank”.

So you mean penalty will be collected only when we have money in account.
Do Banks can deduct money from MFs depositions (AMC) or they cannot in both cases if AMC belongs to Bank or otherwise.

Penalty will be levied when you DON’T have the money in your bank account.
( For E - Mandates )

Example - You have 10rs in your bank account, but you have set up a automatic e - mandate for 10k ? Now, Where will banks get the 9990 rs from ? They will not pay it nor you’ll get a negative balance. There is no compulsory ‘settlement’ for banks like brokers.
But, you DID NOT have 10k in your bank account, so BANK will impose a penalty.

AMCs and banks are separate entity even when they have the same parent company. This increases the complexity, So they will NOT do such thing.

The only way is it have sufficient balance in Saving account (up to to the e mandate amount at least) to avoid a penalty.

There is NO penalty from either AMC or broker for SIP failure. It’s from the BANK for e-mandate failure.

Example, if the penalty is 100rs but you have only 10rs in your saving account.
Now, they will deduct 100rs from your account and you will be left with a negative 90rs which will incur some interest. You’ll need to add funds to your account ASAP to avoid more problems (like the way we do with brokers).