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.

Also Read: India tops world in IPO count, ranks third in fundraising in FY26: SEBI Annual ReportInvestors 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.