The government could introduce a formal regulatory framework for digital gold as early as next year.
The proposed rules are expected to improve investor protection, transparency and oversight of digital gold platforms.
Highlights
- India may introduce a regulatory framework for digital gold next year.
- DPMACI has held discussions with the Finance Ministry, RBI and Consumer Affairs Ministry.
- The proposed framework is aimed at protecting investors from unreliable operators.
- Investors bought around 10 tonnes of gold digitally during FY 2025-26, according to DPMACI.
- Digital gold allows people to start buying gold with very small amounts through apps.
- Industry participants include SafeGold, MMTC-PAMP, Augmont, PhonePe and Gullak.
Digital gold investors in India could get stronger regulatory protection as the government considers introducing a formal framework for the rapidly growing investment segment as early as next year.
The proposed regulations are expected to focus on investor safety, greater transparency and stronger oversight of companies offering digital gold products. The move could be significant for consumers who increasingly use mobile apps and online platforms to buy gold in small amounts.
According to the report, the Digital Precious Metals Assurance Council of India (DPMACI) has held several rounds of discussions over the past month with the Ministry of Finance, the Reserve Bank of India (RBI) and the Ministry of Consumer Affairs.
The discussions are aimed at developing a regulatory structure that can protect investors and prevent unreliable or fraudulent operators from entering the digital gold market.
DPMACI Chairperson Nirupama Soundararajan said digital gold is rapidly gaining popularity in India and expressed hope that formal regulations for the sector could be introduced by next year.
DPMACI was formed around three months ago by companies associated with the digital gold and fintech ecosystem. Participants include SafeGold, MMTC-PAMP, Augmont, PhonePe and Gullak. The industry body aims to improve transparency and build greater consumer confidence in digital precious metals.
The scale of the market has also expanded significantly. According to DPMACI, investors purchased around 10 tonnes of gold through digital platforms during the financial year 2025-26.
Digital gold allows customers to purchase 24-carat gold online, sometimes with investments as small as Rs 10 or Rs 100. Providers generally say physical gold equivalent to a customer’s purchase is stored in secure vaults. Investors can later sell their holdings online or, subject to platform conditions, request physical delivery.
However, unlike some traditional financial investment products, digital gold currently does not have a comprehensive government regulatory framework specifically governing the entire sector.
Industry officials have pointed to digital gold ecosystems operating in countries including Turkey, Indonesia, Malaysia, Australia, the UK and China. Indian policymakers could examine international models while developing rules suited to the domestic market.
A formal regulatory framework could therefore mark an important shift for India’s fast-growing digital gold industry by establishing clearer standards for platforms, strengthening safeguards and giving consumers greater confidence while purchasing gold online.
