Thousands of people trade in the stock market every day and for their ease, the National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) introduced the demat accounts.
These depository accounts help investors and traders store and manage their holdings in an electronic format easily.
In this article, we will look at how to withdraw money from a demat account to make trading a seamless process for you.
How Does a Demat Account Work?
The Demat account holds all the security certificates electronically. To begin trading in the stock market, individuals need to open up demat and trading accounts.
The demat account makes storing securities safe and more efficient. As soon as you place a buy or sell request, the depository participant forwards the request to the stock exchange.
The stock exchange finds someone who wants to sell or buy the shares.
If the price matches, the request is forwarded to the clearance houses, which debit the shares from the seller’s demat account and credit them to the buyer’s demat account.
How to Withdraw Money From Demat Account?
Follow these steps to withdraw money from your demat account on Dhan:
- Log In to Your Account
The first step is to open the Dhan app and log in to your account by using your phone number and password.
Logging in to your account go to the Money section, where you check balances and manage your account.
- Locate the Withdrawal Option
The next step after you log in is to find the withdrawal option on the account. You will find an option titled ‘Money’ at the bottom right corner of your screen.
As soon as you click, different opinions will appear on the top. Choose ‘Funds’ appearing on the top left corner of your screen.
You will now see a figure below the title ‘Available for Investing’. This is the amount available to invest in funds or withdraw from the demat account.
Below this option, you will find another option called ‘Manage Funds’, and the subcategory ‘Withdraw to Bank.’ Click on this option to redirect you to the Withdraw Money page.
- Choose the Withdrawal Method
On this page, you will see two figures. One will be the maximum withdrawal amount, and the Enter valid amount to withdrawal or fast withdrawal.
For example, if the total amount available for investing is INR 3000, the amount available for fast withdrawal could be INR 2400.
Fast withdrawal instantly transfers the amount to your bank account using IMPS. Usually, you can instantly withdraw close to 80% of the fund value.
- Enter the Amount
The next step is to enter the amount that you wish to withdraw. If you want the funds instantly, choose a figure that is available for fast withdrawal.
If you want a normal withdrawal, you can choose an amount higher than that within your maximum withdrawal limit.
After selecting the withdrawal amount, choose the bank account. Your default bank account must appear at the bottom of the page; click on that.
- Verify the Details
Once you have entered all the information, recheck the amount, the personal details, and the withdrawal method. If any of these details are incorrect, it would lead to inaccuracy or delay in the fund withdrawal process.
- Withdrawal Confirmation
After verifying your details, confirm the withdrawal. Once you press confirm, you have one minute to cancel the request if it was made by mistake.
After the 60-second timer, they will automatically process the withdrawal request.
- Wait for Processing Time and Receive the Money
The funds can be available through quick withdrawal before 60 minutes pass. It usually takes 15-20 minutes.
If you want the complete funds, this process might take 2-3 hours. If you request before 5:00 PM (non-bank holiday), the request will be completed within the same day.
However, if you place the request after 5:00 PM, they will process it by noon on the next working day.
Following these steps, one after the other will ensure a smooth withdrawal process from the demat account. You can also use the Dhan trading platform to withdraw funds from a demat account.
Please check the recent changes in the Funds Withdrawal process at Dhan, Click here.
Things to Remember While Transferring Money From a Demat Account to a Bank Account
Before making the fund transfer, you must keep in mind a few things. These include:
- You cannot transfer the funds from the demat account to the bank account directly. The trading account acts as an interface between the demat and the bank account and any transfer will be made through that only.
- Do not mix the fund limit funds and the funds you are allowed to transfer. Brokerages allow leverage trading and lend certain funds based on your collateralized securities. While this amount might be displayed on your account, you cannot transfer it to your bank.
Conclusion
With the help of demat accounts, adding and withdrawing funds has become relatively simpler.
You can place a request for the amount you want to withdraw from the demat account and have it transferred to your bank account within minutes to a maximum of one day.
Distinguishing itself from other brokers, Dhan allows you to instantly transfer 80% of funds within 10-20 minutes, so you do not have to worry about liquidating the funds.
