What are the Transaction Limits of a Demat Account?

If you involved into the field of stock trading or stock investments, it would be easier for you to understand the value of a Demat account. A Demat is supposed to hold the securities in a dematerialized form. In general, all the top brokers in India allows their clients to open a 3-in-1 account system which is inclusive of a Savings Accounts, Demat Account, and Trading Account. The purpose behind having these types of account is to ensure seamless stock transactions in the stock exchange.

There are primarily three types of Demat Account.

Regular Demat Account – This type of Demat account is meant for all residing Indian citizens for stock trading.

Repatriable Demat Account - Non-resident Indians (NRIs) are eligible to open this kind of Demat account. It enables easy transfer of money from other countries since it is linked to an NRE bank account.

Non-repatriable Demat Account – This Demat account is also meant for NRIs but they cannot be used to transfer funds from other countries. To operate this account, the account holder must need to link the NRO bank account.

Transaction Limits of A Demat Account

At present, there is no such limits applicable in a Demat account. The Demat account holder can hold any worth of shares of securities in its Demat account. However, in the case of Basic Service Demat Account (BSDA), the maximum limit is 2 lacs. If you are a retail stock investors, there is no need to worry about any such limit. Even if you choose to open the Top Demat account in India, the limit and charge remains somewhat same.

Below are some other types of restrictions that you should keep in mind.

According to Zerodha, there are certain limitations on the amount that one can transfer per transaction.

• In the case of UPI transfers, the general transfer limit is capped at Rs. 1 lakh per day, while there could be additional restrictions on a per transaction on a bank to bank format.
• For example, BOI permits 1 Lakh in a day, but not over 10,000 per transaction.
• In the case of IMPS/NEFT/RTGS transfers, it is up to the bank to define maximum amount limit per transaction. Usually, it’s Rs. 2 Lakh per transaction for IMPS, but it is better to confirm with your bank in regard to the exact amount.
• For Kite gateway transfers, the upper limit set at Rs. 1 Crore per transaction. One would have to do multiple transfers to transfer an amount of more than 1 Cr.

Annual Maintenance Charges (AMC)

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A Demat account holder must needs to pay a fee for demat account which is widely regarded as Annual Maintenance Charges (AMC). Annual maintenance demat charges are eliminated in the case of BSDA if the amount is below Rs. 50,000. Those have the securities of worth Rs 50,001-2 lakh are supposed to pay an amount between Rs 100 and Rs 750, given the number of transactions they do. Some stock brokers may incur quarterly charges, while others may levy a onetime charge of Rs 2000 or above. The annual charge may go up to Rs 2,000-2,500 if the transaction value goes beyond Rs 2 lakh.

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