Zerodha Account Closure Process, Charges, Deactivation - Explained

Published on Saturday, October 2, 2021 by Chittorgarh.com Team

Zerodha customers can close their accounts at any time by submitting an account closure request. The process is simple. It saves you from annual maintenance charges and misuse of the account if you do not have plans to use it.

Zerodha provides the facility to close the account temporarily or permanently. If you choose to close the account temporarily, you can reactivate it anytime by submitting a written request along with the basic KYC documents.

Account Closure in Zerodha

Zerodha offers to close the account online using e-Sign as well as offline using paper forms. Zerodha takes about 5-7 working days to process the account closure request.

Steps for Zerodha account closure online

1. Visit Zerodha website.
2. Click on the Downloads & Resources link under the Support Section at the footer of the website.
3. Download Account deactivation/closure form available under Change request forms in Application forms.
4. Fill the form digitally with the below details:
   • Tick the account to be closed - Trading/Demat or Commodity.
   • Trading Client ID.
   • Demat BO ID.
   • Names and address of primary account holder.
   • Mention the reason for the closure.
5. E-sign the form using Digio.
6. Create a ticket for account closure and submit the account closure form.

Steps to close the Zerodha account offline.

1. Download the Zerodha account closure form.
2. Print and fill in the details in the form viz. name, address, trading ID, Demat ID, and reason for the closure.
3. Sign the form.
4. Courier the closure form to Zerodha Head Office.

Note:

• Clear all the outstanding dues. There should be no negative balance in your Zerodha account.
• There should be no securities in your Zerodha Demat account.
• Transfer or sell the securities as desired.
• Close all the open F&O positions.

Zerodha Account Closure Charges

Zerodha does not levy any charges for account closure. The account cannot be closed until you clear all the dues including annual maintenance charges.

Zerodha Account Closure and Transfer

Zerodha Demat account should be empty at the time of initiating the account closure request. However, if you have any securities in the Zerodha Demat account, you can opt for the closure cum transfer process as described below.

Steps for Zerodha account closure and transfer

1. Download and print the Zerodha account closure form pdf.
2. Fill the form with all the details.
3. Mention the beneficiary DP ID and Client ID.
4. Submit the Client Master Report (CMR) of the target Demat account along with the signed account closure form to the Zerodha Head office.

The CMR needs to be sealed and stamped. In the case of the NSDL beneficiary account, the CMR should be in hard copy with seal and signature of respective NSDL DP. If the beneficiary account is with CDSL, the digitally signed copy should suffice.

Zerodha Account Closure on Death

In case of the death of an account holder, the nominee/successor/dependants/relatives can initiate the Zerodha account closure request . The closure process is easy when there are no securities or funds in the Zerodha account. You need to submit the below documents and the account closure form to close the Zerodha account of the deceased account holder.

• Copy of Death certificate of the account holder.
• PAN number of the deceased account holder.

If there are holdings and funds in the account, the account closure process will differ depending on the scenario.

1. In case of a joint account, the surviving holder can initiate the closure request and get the securities and funds transferred to their account by submitting the below documents:

   • Transmission Request Form.
   • Duly filled and signed account closure form.
   • Notarized copy of the Death certificate of the deceased account holder.
   • Sealed and stamped Client Master Report of the beneficiary account of the surviving holder.
   • ID proof of the survivor.
   • Copy of bank statement/cancelled cheque of the survivor.

2. If there is a nominee in the account, the nominee can initiate the closure request by submitting the same set of documents as mentioned above and get the funds and securities transferred to the nominee's account.

3. If there is no nominee appointed and is not a joint account, the process is a little complex as the successor has to submit the below documents based on the value of securities and funds.

   • Transmission Request Form.
   • Notarized/Attested death certificate of the deceased account holder.
   • Sealed and stamped CMR of the beneficiary account.
   • ID proof and bank proof of the successor.
   • Letter of Indemnity/copy of Family Settlement Deed/Affidavit.
   • Succession certificate/letter of administration/probate of the Will of the deceased.

   All the documents should be sent to the Zerodha head office for processing the closure request in any scenario. Zerodha takes 15 days to process the transmission request if all the documents are correctly submitted.

Check Zerodha Account Closure Status

Zerodha takes 5-7 working days to process the closure request. You will receive a mail from Zerodha to confirm the account closure. However, in case of no communication from the company within seven days, you should open a support ticket or follow up on the Zerodha account closure ticket to get a status update.

Zerodha Account Deactivation

Zerodha offers its clients to close/freeze their accounts temporarily. This temporary closure of an account is called account deactivation.

In case of account deactivation, you still get charged with AMC as the account is not permanently closed. You can resume trading anytime you wish using the same client code by sending a written request to Zerodha Head office along with ID proof and address proof.

Steps to deactivate Zerodha account:

• Download the Zerodha account deactivation form.
• Tick on Deactivate account and fill the form.
• Submit the form to Zerodha head office.

You can also e-sign the form and create a ticket to submit the deactivation request.

It is important to note that you will not be able to access the Zerodha Kite, Console, Coin platforms while your account is in the deactivated mode.

Zerodha also offers to deactivate/ disable a particular segment with the help of the Kill switch feature from the Zerodha Console.

Zerodha Commodity Account Closure

Zerodha has one common form to close the accounts across Equity/F&O and Commodity either temporarily or permanently. There is no separate Zerodha commodity account closure form.

To close the Zerodha commodity account, you need to tick on Zerodha Commodities Private Limited in the account closure form and submit the form by following the same process as in the case of any other closure.

Conclusion

You can close your account in Zerodha online permanently or temporarily by e-signing the account closure form with ease and at your convenience. It is advisable to close the account permanently if you are not using the same. The temporary closure of the account puts a freeze on your account. However, you are still liable to pay the AMC charges. It is important to note that a dormant account does not mean a closed account. You need to initiate a closure request to close such accounts.