India is set to introduce its first comprehensive regulatory framework for digital gold in 2027, marking a major step toward bringing one of the country’s fastest-growing investment products under formal oversight. The proposed framework is being developed following extensive consultations between industry participants and key government agencies, including the Ministry of Finance, the Reserve Bank of India (RBI), and the Ministry of Consumer Affairs. The initiative aims to improve transparency, consumer protection, and operational standards for digital gold platforms while supporting the long-term growth of the sector.
The effort is being led by the Digital Precious Metals Assurance Council of India (DPMACI), a self-regulatory organization formed earlier this year. Its members include major digital gold providers such as SafeGold, MMTC-PAMP, Augmont, and fintech platforms including PhonePe and Gullak. The proposed framework is expected to establish uniform standards for digital gold issuance, storage, redemption, disclosures, and governance, addressing the regulatory uncertainty that has surrounded the sector for years.
India to Introduce Digital Gold Regulations
The upcoming framework is expected to create a formal regulatory structure for companies offering digital gold investments.
Its primary objectives include:
- Establishing uniform industry standards.
- Improving consumer protection.
- Increasing transparency in digital gold transactions.
- Strengthening trust in digital precious metal investments.
- Encouraging responsible growth of the digital gold ecosystem.
Framework at a Glance
| Item | Details |
|---|---|
| Framework | Digital Gold Regulatory Framework |
| Expected Launch | 2027 |
| Lead Industry Body | Digital Precious Metals Assurance Council of India (DPMACI) |
| Government Stakeholders | Ministry of Finance, RBI, Ministry of Consumer Affairs |
| Objective | Standardize and regulate digital gold investments |
Why Regulation Is Needed
Digital gold allows consumers to purchase fractional quantities of physical gold through mobile apps and fintech platforms.
Although the product has grown rapidly, the industry currently operates without a dedicated regulatory framework, leading to concerns around:
- Custody of underlying gold.
- Storage and auditing standards.
- Investor disclosures.
- Platform governance.
- Consumer grievance mechanisms.
The proposed rules are expected to address these gaps and create greater confidence among investors.
Role of DPMACI
The Digital Precious Metals Assurance Council of India (DPMACI) was established to develop industry best practices and work with regulators on formal oversight.
Its members include several leading digital gold providers and fintech companies.
The council has been engaging with government departments to develop:
- Common operational standards.
- Uniform disclosure requirements.
- Consumer protection measures.
- Industry governance practices.
- Compliance mechanisms.
Key Industry Participants
| Category | Participants |
|---|---|
| Digital Gold Providers | SafeGold, MMTC-PAMP, Augmont |
| Fintech Platforms | PhonePe, Gullak |
| Industry Body | DPMACI |
What the New Rules Could Cover
While the final regulations are still under development, industry discussions suggest the framework may include standards for:
- Verification of physical gold backing digital holdings.
- Independent audits of vault inventories.
- Secure storage requirements.
- Redemption procedures.
- Customer disclosures and pricing transparency.
- Governance and operational compliance.
These measures are intended to ensure that every unit of digital gold sold to consumers is backed by an equivalent quantity of securely stored physical gold.
Impact on Investors and the Industry
A formal regulatory framework could significantly strengthen India’s digital gold market.
Potential benefits include:
- Greater investor confidence.
- Standardized practices across platforms.
- Improved transparency.
- Better consumer protection.
- Increased institutional participation.
- Higher credibility for digital gold as an investment product.
For fintech companies, regulation could provide greater regulatory clarity and support wider adoption among retail investors.
Growing Digital Investment Market
India remains one of the world’s largest consumers of gold, and digital platforms have made precious metal investments more accessible by allowing consumers to buy small quantities online.
As digital investment products continue to expand alongside broader fintech adoption, regulators are increasingly focused on creating frameworks that balance innovation with investor protection. The proposed digital gold regulations are expected to play an important role in achieving that objective.
Looking Ahead
India’s planned digital gold regulatory framework represents a significant milestone in the evolution of the country’s precious metals investment ecosystem. By introducing standardized rules for digital gold platforms, the government aims to improve transparency, strengthen consumer safeguards, and provide greater regulatory certainty for a rapidly growing market. The collaboration between DPMACI, the Ministry of Finance, the RBI, and the Ministry of Consumer Affairs highlights a coordinated effort to build a robust governance framework for digital precious metal investments.
Looking ahead, the success of the framework will depend on how effectively it balances innovation with investor protection. If implemented as planned, the regulations could enhance trust in digital gold, encourage broader retail participation, and establish a stronger foundation for the future growth of India’s digital precious metals industry while ensuring higher standards of accountability across the sector.
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