Why is there a mismatch between the PIS account balance and what is updated on Kite?

As part of Zerodha's risk management measures, the funds are updated on Kite after reducing the following:

• 0.5% of the PIS closing balance
• Bank reporting charges of ₹118 (₹100 + 18% GST)
• Value of shares bought

The above reductions are made to ensure there are enough funds in the PIS account to avoid any delays in bank settlements due to insufficient balance.

Example Scenario

• The closing balance of the PIS account was ₹10,00,000, and no trade was placed on the previous day:
  Fund balance on Kite = ₹10,00,000 - (0.5% + ₹118)
  Fund balance on Kite = ₹10,00,000 - (₹5,000 + ₹118)
  Fund balance on Kite = ₹10,00,000 - ₹5,118
  Fund balance on Kite = ₹9,94,882
  
• The closing balance of the PIS account was ₹15,00,000, and trades worth ₹9,94,000 were placed:
  Fund balance on Kite = ₹15,00,000 - (0.5% + ₹118) - ₹9,94,000
  Fund balance on Kite = ₹15,00,000 - (₹7,500 + ₹118) - ₹9,94,000
  Fund balance on Kite = ₹15,00,000 - ₹7,618 - ₹9,94,000
  Fund balance on Kite = ₹15,00,000 - ₹10,01,618
  Fund balance on Kite = ₹4,98,382.00