One of the big advantages of an online trading account is that the entire process of operating your bank account, trading account and demat account becomes totally seamless. That means your pay-in and pay-out also become seamless. What exactly is a pay-in? When you buy shares your broker needs to pay-in to the exchange by T+1 day. Similarly, when you sell shares you are required to give delivery in the form of a debit instruction slip latest by T+1 day. Based on the DIS, the shares will come into your demat account on T+2 date and in case of proceeds of sale they will come into your bank account also on T+2 day.
Most online trading platforms have a slightly different format for pay-ins and pay-outs. Both these processes are entirely online and seamless from the point of view of a customer. When you open a trading account on CashCow and also a demat account, then it is called a 2-in-1 account. In case of bank-brokers you can also have a 3-in-1 account where the banking interface also comes from the same group. In case of CashCow, you need to fund the account before taking buy trades. Of course, delivery will require 100% pre-funding whereas F&O and intraday trading will require margin amount to be funded in advance.
How do you fund your trading account on CashCow?
Funding your trading account in CashCow can be managed in one of the two ways. Firstly, you can fund the account through the online payment gateway. There are authorized payment gateways in India and you can access these gateways from the CashCow trading app itself. There could be payment gateway charges that will be involved in this fund transfer. However, the fund transfer happens immediately and seamlessly in this case. Alternatively, you can also fund your account through bank-to-bank transfer using NEFT / RTGS / IMPS. Normally, RTGS is applicable in case of transfer of funds over Rs.2 lakhs and NEFT in case of funds less than Rs.2 lakhs. The fund transfer takes 2-3 hours. IMPS transfer happens immediately but there could be IMPS charges imposed by your bank.
How does the pay-in happen on CashCow?
The pay-in process on CashCow is largely seamless. Normally, delivery positions have to be pre-funded and all margin products will be automatically squared off by the system if the trader does not square off. The pay-in has to be deposited with the exchange by T+1 morning and once the pay-in is completed then the shares will come into the demat account on T+2 day.
How does the pay-out happen in CashCow?
The pay-out process is slightly different compared to the pay-in process. The pay-out is relevant to you when you sell shares. You can sell shares that you have either purchased intraday, bought on T-1 or from your demat account. Once the balance in demat is confirmed, the trade is executed. The demat account is debited on T+1 day and the bank account is credited by end of T+2.
CashCow is available for free download on Google Play and the entire software has been kept very light and simple so as to facilitate easy download and also easy navigating even for first time users.