Fund settlement in Kotak Securities takes place automatically every quarter. If you’ve made money in the stock market by either trading or via the route of short/long term investment, you may want to use the profit for something else. For example, you may want to buy a gift, new watch, car, or even a house.
To transfer money from your Kotak Neo account to your bank account, you don’t have to wait for the settlement to happen. Simply log in to your Kotak Neo account, click on the funds option on the menu bar and select the “withdraw” button. When you do so, the website will open a form that shows the amount that can be transferred to your account, a box to enter the amount, a “withdraw all” checkbox and a button that will submit the form when it is clicked. After filling out the amount, click the blue button to submit the form. The site will now display a short message.
Fund withdrawal time: After making any request to a broker, we expect our request to be processed quickly. As in any other broker, money is transferred in real time to the trading account but the withdrawals of funds, whether the amount is small or big, take some time. Requests made before 4 PM are processed before 5PM on the same day and you’ll get the amount by 10 PM. What happens if you place the request after 4PM? Kotak Neo will process the same late in the night and will deposit the amount between 9 AM and 2 PM the next day.
Why is the amount not transferred quickly/on the fly? If you’ve bought and sold the shares on the same day, you will have to pay these fees – STT, Turnover charges, etc. Although Kotak won’t deduct the same before transferring the amount, you may have incurred a loss or made a profit while trading or after selling shares that were in your demat account. To process the same, fund withdrawals are not processed in real time. The exchange induced tax will be reflected in Kotak Securities ledger on the next day, whether you’ve profited from trading or suffered a loss.
Cancel withdrawal request: Some brokers, for example, Espresso, don’t allow users to cancel fund withdrawal requests but Kotak Securities does. The form that lets you withdraw money allows you to modify or cancel the request. If you modify the amount before the request is processed, the new amount will be sent to your bank account. If you cancel the withdrawal, your request will be processed immediately.
Once the funds are deposited to your account, your bank will send a text message to make you aware of the same. Kotak Securities will also send a text on the next day stating that the money deducted from your trading account has been deposited to your bank account.
