Can a broker withdraw money from my linked bank account?

No, if you have a 2-in-1 account (Trading +Demat) with the stockbroker. While your bank account is linked to your trading and demat accounts, your broker cannot withdraw funds from the linked bank account. The linked bank account is used for a few purposes:

1. Dividends are directly deposited in your linked bank account.
2. The withdrawal of funds from trading to a bank account can only be done in the linked account.
3. You can transfer funds from a bank account to a trading account only using a linked bank account.

Brokers like Zerodha, Upstox, Sharekhan, Motilal Oswal, Groww, Paytm, ProStocks offer 2-in-1 accounts.

3-in-1 Account

Yes, your broker (bank) can withdraw funds from your bank account if you have a 3-in-1 account with your bank. The 3-in-1 account is a combination of bank + trading + demat account. All of these accounts are connected seamlessly for smooth transactions.

Banks like ICICI, HDFC, SBI, PNB, and Kotak offers 3-in-1 account.