Digital gold may come under RBI, Sebi oversight; physical backing proposed
Discussions are underway to tighten digital gold rules, requiring physical bullion backing for every unit. The government is considering joint oversight by the Reserve Bank of India and Sebi. Digital gold, managing approximately three billion dollars in assets, is seen as an unregulated segment. Stakeholders agree that bringing this popular product under regulatory supervision is urgently needed.
India's government is considering placing digital gold under the oversight of both the central bank and securities regulator, according to sources familiar with the matter. The finance ministry has been consulting with regulators, banks, and other stakeholders, with a consensus emerging that digital gold should be treated as a security under the Securities Contracts (Regulation) Act, 1956.
The Securities and Exchange Board of India had previously cautioned investors about digital gold in 2025, stating it operates outside Sebi's purview.
Digital gold assets currently manage around $3 billion, with an average ticket size of ₹100. Industry experts agree that the unregulated segment should be brought under regulatory supervision to protect investors and prevent money laundering. Stakeholders have recommended that every unit of digital gold be backed by physical bullion and that the product come under joint RBI and Sebi oversight.
Digital gold and silver platforms in India have formed the Digital Precious Metals Assurance Council of India to standardize processes and protect customer interests. The council includes major players like MMTC-PAMP and SafeGold, as well as platforms such as PhonePe, BharatPe, MobiKwik, Gullak, Lenden Club, and CRED. The regulators are eagerly awaiting the council's recommendations on how to best regulate the growing digital gold market.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
