Just saw an article saying RBL Bank in talks to onboard Zerodha 160 million clients through 3 in 1 account with trading, demat and banking.
The article says 160 million, that number looks so incorrect.
Is this true? I couldn’t find any comments from Zerodha. Are you guys sharing any client data with RBL? @nithin @VenuMadhav
How can Zerodha onboard us without our consent? What all will change for the clients if this turns to be a real news?
I thought Zerodha already offers 3 in 1 account in partnership with IDFC First Bank. RBL may just end up as another option for those willing to opt 3 in 1 accounts
Thank you for summing up the answer in one sentence 
In essence, this is all it is. The detailed answer is that SEBI mandated all Qualified Stock Brokers (QSBs) offer either a UPI based blocking mechanism, or a 3-in-1 facility. We already had 3-in-1 partnership with IDFC First Bank, we’re extending it to offer it via RBL as well. Any client, if desirous may choose to open a new bank account/use an existing RBL account and transact. Zerodha, under no circumstance will share any of its client information with any other entity as the article seems to suggest.
Also, 160 million clients? 
We wish we had that many clients to begin with. There aren’t that many unique clients in the whole broking business. Looks like the article may have been written a bit too enthusiastically, without much fact-checking.
Why is your article blank? Zerodha Support Portal: Account Opening
What is 3 n1 account? How is it different than normal Zerodha account (with some other bank)
I assume you don’t need to transfer the funds to Zerodha. It’ll be directly “blocked” and transferred. Wonder if it’s the same for derivatives. If true, you’ll get like 3% interest on the blocked amount.
How to enable the IDFC 3-in-1 account with blocking facility? This is the correct link.
It allows you to hold funds in your account, lien mark them to your broker and allow for debit only if there’s a fund obligation. There’s more on this link, including the charges
I haven’t fully explored the 3 in 1 account so far because the transfers are frictionless. I just happened to check it from this thread. Is it practically useless for a retail buy and hold investor? Paying 0.5% brokerage for delivery is a lot. Am I missing something?
Can you clarify? why 0.5% brokerage for delivery? It is free for normal accounts, right?
Brokerage is commensurate to effort involved, which is higher here.
Really. This is surprising i though zerodha was zero commission broker for delivery and for resident customers
What is the efforts involved. Is it not the same as before. Is their any manual intervention which is increasing the work load. Like to know. example, for NRI, the broker need to deduct TDS and separate reports need to be sent to regulators etc so NRI’s were always charged by zerodha. Curious to know what additional efforts are being given for resident customers to charge 0.50%
Or
Is it just simple maths that earlier zerodha used to earn from the humangous float balance which is now being moved to customer as the money remains in their bank account and customers get interest on float.
Whatever it is, this should be clearly explained as people think zerodha is a zero broker for delivery and blindly open the 3 in 1 account.
Thanks for clarifying. This is much needed.
Can you confirm if I enable the IDFC-Zerodha 3-in-1 account, I will be charged 0.5% brokerage for equity delivery or will it remain as 0 rupees?
Read this. You will be charged 0.5% as per Zerodha website
Zerodha is charging similar to a Full Service Broker in case of 3 in 1 Accounts. So if someone needs one, better to opt for a full service one because they will provide their Research and Offline Services for Free there which is not the case with Zerodha
I mean what is the benefit here really? The only thing I see is Zerodha partnering with RBL and that boosting the bank’s liquidity and position - in turn benefiting Zeordha as it hold >1% stake in the bank as share prices have gone up recently and will likely go up in the near term.
If equity deliveries are charged high brokerage, then those using this 3-in-1 are at loss really. They are being charged much more in the name of convenience - plus are they being informed that they are being charged higher than the default brokerage thar is currently there? Probably a part of brokerage is going probably going to the bank for the feature.
For majority of the people, the transfer in is smooth and does not take much time. But with 3-in-1 they are being charged 500 per 1 lac of delivery. This is way higher than most of brokers in the market. In the name of smooth transactions and less back and forth of funds, the holders are being charged chunks without clear declaration and informing them of the difference in brokerage.
As a non 3-in-1 user, currently I can do deliveries with 0.01 per lac/10lac/crore even. But with 0.5%, it would be 500/ 5000/ 50000 brokerage. Oof too high charges.
Kinda feels dark pricing to me. Personally I wouldn’t think of touching this feature or any new upcoming bank-connected schemes with a six-foot pole. Day by day the quality of service orientation is declining. Sigh…
Very interesting points. Plus i believe a chunk of it is probably going to the bank too.
Plus aren’t there laws against such related party transactions? How can a non-immaterial stake-holder in the bank bring in such big block of business to it? Might be workarounds to regs but feels shady to me. Just my opinion though.