Zerodha sent this email because the bank account linked to your Zerodha account does not match your account category. SEBI regulations require all account details to be valid and up-to-date.
Your bank account may have one of these issues:
- Overdraft (OD) account: You linked an overdraft account instead of a regular savings or current account to your demat account.
- Bank name or account number mismatch: The bank name or account number on your submitted bank statement does not match the details in your Client Master Report (CMR).
- NRE or NRO account linked to a resident account: You linked a Non-Resident External (NRE) or Non-Resident Ordinary (NRO) bank account to your resident individual Zerodha account, which is not permitted under regulations.
What happens if you do not update your bank details?
You have 30 calendar days from the date of the email to update your bank details. If you do not update your bank account within this period:
- Zerodha will freeze your account under the invalid bank details category as a precautionary measure.
- You will not be able to place any new trades.
- Zerodha will block all fund withdrawals from your account.
- You will not receive dividends until you link a valid bank account.
Your account will remain frozen until you update your bank account details.