Nithin Kamath Hails India’s UPI Edge as Robinhood Earns ₹1,300 Crore from Instant Withdrawals, Calls US Banking System ‘Broken’

Sending money or paying someone for something is now easier in India than ever before, thanks to India’s own Unified Payments Interface (UPI). Although Indians take it for granted, as it has been common among common people but not everyone around the world enjoys this level of convenience.

That is why Nithin Kamath, Zerodha co-founder, recently reminded us just how advanced India’s digital payment ecosystem really is, while taking a sharp dig at the United States banking system, which he called “broken.”

In a post on X (formerly Twitter), Kamath revealed something quite surprising, US-based brokerage Robinhood earns around ₹1,300 crore ($150 million) every year from just one feature: instant withdrawals.

A Shocking Comparison Between India and the US

According to Kamath, Robinhood’s cost to process these instant transactions is about $35-40 million, meaning the company makes nearly ₹900 crore in profit just from allowing users to get their money faster. “That’s just from instant withdrawals,” Kamath wrote, calling the number “shocking.”

He went on to say that Indian founders often dream of generating such non-core revenue streams like Robinhood does from add-on services such as loans, insurance, and payments. However, he pointed out that these efforts rarely work outside a company’s main product offering.

“The US Banking System Is Broken,” says Kamath

Kamath expressed disbelief that American users pay as much as 1.75% in fees per transaction for instant withdrawals. “This really shows how broken the US banking system is,” he said. Despite being home to some of the world’s largest financial institutions, the US still lacks a universal real-time payment system, meaning most fund transfers take days to complete.

In contrast, Kamath celebrated India’s UPI-led revolution, where money moves instantly and without fees. He noted that Indian fintech companies face challenges monetizing add-on features because local users are simply not willing to pay for extras, but that’s also what makes India’s system so inclusive and efficient.

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UPI: India’s Silent Fintech Superpower

Highlighting Zerodha’s own experience, Kamath said the company doesn’t charge any fee for deposits or instant withdrawals, all thanks to UPI. “For comparison, we don’t charge Zerodha clients for deposits (thanks to UPI) or instant withdrawals,” he said. The platform has already processed over ₹50,000 crore in instant withdrawals in less than two years, at zero cost to users.

It’s a proud reminder of how far India has come in building a seamless, affordable, and world-leading digital payments network. While startups in the US may find success charging for convenience, Indian fintechs are proving that trust, access, and zero-cost innovation can be far more powerful.

Disclaimer:
This article is based on publicly available information and statements made by Nithin Kamath on social media. It is written for informational and educational purposes only and does not constitute financial advice or an official endorsement of any company or platform.