India to launch digital gold regulatory framework next year

Kolkata: India may roll out a regulatory framework for digital gold as early as next year after the Digital Precious Metals Assurance Council of India (DPMACI) held a series of consultations over the past month with the finance ministry, the Reserve Bank of India and the consumer affairs ministry. The industry-led self-regulatory body was set up three months ago by digital players like SafeGold, MMTC-PAMP, Augmont and fintech platforms - PhonePe and Gullak.

"Consultations are underway to work out a regulatory framework for digital gold players so that the interests of consumers are protected and fly-by-night operators do not get a chance to dupe them. We are expecting the regulations to come in place next year as digital gold as a product is gaining popularity among the Indians," DPMACI chairperson Nirupama Soundarajan told ET.

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Investors accumulated about 10 tonnes of gold through digital platforms in FY26, according to DPMACI. Industry executives said countries like Turkey, Indonesia, Malaysia, Australia, UK and China have developed a strong digital gold ecosystem and policymakers in the country are likely to study their models.

Digital gold allows users to buy and sell 24-karat gold through fintech apps and online platforms, often in very small amounts starting from ₹10 or ₹100. The platforms claim to store the equivalent physical gold in a secure vault on behalf of the buyer. Later, investors can sell it digitally or request delivery of physical gold.