Is Digital Gold Safe Now? Inside DPMACI, India’s New Self-Regulatory Body for Digital Gold

Is digital gold safe in India? Digital gold is not directly regulated by SEBI, and until 2026, that gap left investors exposed. That’s what DPMACI is trying to fix. The need for these standards became more urgent as digital gold rapidly gained popularity across India. 

Gold prices have climbed steadily over the past few years, while digital gold has made investing more accessible by allowing people to buy small fractions online.

UPI-based digital gold purchases jumped 90% in Q1 2026, reflecting a shift from occasional, high-value purchases to small, everyday investments.

However, this growth has also resulted in regulatory challenges. In November 2025, SEBI issued a formal clarification that digital gold operates entirely outside its regulatory framework. Unlike Gold ETFs or mutual funds, digital gold carries no statutory investor protections and is not classified as a security or commodity derivative. 

Investors were left without the oversight of a centralized financial regulator to intervene in the event of platform insolvency or custodial failure.

This sparked an important question: is digital gold safe in India?

In response, India’s digital precious metals industry established the Digital Precious Metals Assurance Council of India (DPMACI). This new self-regulatory body (SRO) establishes a baseline for transparency, requiring member platforms to adhere to strict standards, including 1:1 physical backing, independent audits, and segregated custody.

Let’s look at what DPMACI changes and what you should continue checking before buying digital gold.

Is Digital Gold Safe in India? Why Apps Need Regulation 

The industry’s growth has outpaced its own consumer protections, and that gap is starting to surface in public ways. 

Case study: The Jar investigation and what it exposed

Earlier this year, Karnataka’s Crime Investigation Department searched the premises of digital gold platform Jar, examining its gold storage protocols, custody structure, and the safeguards in place for customer holdings, under India’s Banning of Unregulated Deposit Schemes Act. 

This episode is a reminder that even large, well-funded platforms can face serious questions about what’s actually backing customer balances. 

Most investors buying gold on PhonePe, Jar, or similar platforms have no visibility into whether their gram exists physically, who holds it, or what happens if the platform encounters financial difficulty. 

If one platform fails, misstates holdings, or creates confusion around custody, the credibility problem does not stay with that platform alone. It spills over into the whole category. The digital gold regulation in India is a way for the industry to say it understands that risk and wants a common baseline before formal regulation catches up. 

It also helps the industry answer a practical investor concern: Is digital gold safe in India? The honest answer is that it can be safer when the rules are clear, the holdings are backed, and the custody model is transparent. That is exactly what DPMACI is trying to push toward. 

To understand is digital gold safe in India, and what risks investors should know about, see STOEX’s video explaining SEBI’s warning.

Is Digital Gold Safe in India? What DPMACI Asks of Platforms 

DPMACI is a digital self regulatory body that brings together major digital gold and silver sellers and distributors. 

Its founding members span both sides of the market: bullion providers that source and vault the physical metal, MMTC-PAMP, SafeGold, and Augmont and distribution platforms that sell digital gold and silver to retail investors, including PhonePe, BharatPe, MobiKwik, Gullak, and CRED.

Notably, Jar, the platform at the centre of the CID inquiry above, is not listed among DPMACI’s founding members, nor are Paytm, Google Pay, or Amazon Pay’s gold offerings, based on the council’s published DPMACI members list at launch. So, it’s worth checking whether your own platform has actually signed on to DPMACI standards, rather than assuming the whole industry has.

“By proactively instituting a common framework of transparency and rigorous standards, we are building a foundation for sustainable growth that prioritises consumer trust.” — Nirupama Soundararajan, Independent Chairperson, DPMACI 

DPMACI mandates five core standards for all members: 

1:1 Physical Metal Backing

Every digital gram must correspond to an actual gram of physical gold in a vault and not fractional reserves or pooling. This needs to be verified by periodic independent audits instead of platform self-reporting.

Third-Party Audits

Independent audit firms must confirm that physical holdings precisely match customer balances. Platforms cannot self-certify.

Segregated Accounts Under an Independent Trustee

Customer assets must be held separately from platform assets, under the supervision of an independent trustee. If a platform runs into financial trouble, customer gold is ring-fenced – kept legally separate from the platform’s own assets, so it isn’t treated as company property that creditors can claim. 

Disclosure Standards

Platforms should clearly disclose vaulting arrangements, insurance coverage, storage practices, and operational standards.

Grievance Redressal via Ombudsman

A formal ombudsman framework is being developed to resolve customer complaints within defined timelines. Today, complaint handling varies wildly across platforms. This standardises it.

DPMACI is already in force as a voluntary self-regulatory body for its member companies. The council has also announced plans to seek formal recognition from a government ministry, likely the Ministry of Finance or the Ministry of Consumer Affairs, although no approval timeline has been disclosed. 

Until then, DPMACI’s standards serve as an industry benchmark, helping establish common expectations around audits, custody, and consumer protection while a broader regulatory framework evolves. 

Does DPMACI Cover Digital Silver Too? 

DPMACI’s standards don’t apply only to digital gold; they also cover digital silver. Several member companies, including MMTC-PAMP, SafeGold, and Augmont, offer digital silver alongside digital gold. The same requirements for 1:1 physical backing, independent third-party audits, and segregated custody apply to both precious metals.

Similar to digital gold, many investors also ask: Is digital silver safe in India? The answer depends on the platform you choose. Before investing, verify that every gram of silver is backed by physical silver, independently audited, and held under segregated custody. A platform that can clearly demonstrate these safeguards offers greater transparency and confidence.

Is Digital Gold Safe in India? What This Means for Investors

 DPMACI gives investors a clearer benchmark for evaluating digital gold platforms. Before investing, it’s still worth understanding:

• Who legally holds your gold?
• Is every gram backed 1:1 by physical gold?
• Are independent audit reports publicly available?
• Is there an independent trustee or custodian?
• How are customer complaints handled?

These are the standards DPMACI is encouraging across the industry and the questions investors should continue asking, regardless of which platform they choose.

See where Stoex stands against these same standards or check Stoex’s live audit reports and custody structure directly.

As Stoex CEO Sudeep put it:

“The platforms already building in the emerging Verifiable Digital Gold category were adhering to these standards before the SRO existed. DPMACI doesn’t change that reality, it just makes those standards visible and easier to verify.” 

That framing lines up with how industry coverage has described DPMACI more broadly: as an industry-driven trust-building measure rather than a substitute for regulator oversight, brought in ahead of any formal rule from SEBI.

Simply put, the introduction of DPMACI doesn’t replace due diligence, it gives you a clearer framework for asking the right questions before you invest. For a clear breakdown on investing, watch STOEX’s comprehensive guide on gold investment options.

The bigger takeaway for investors isn’t whether a platform is a DPMACI member; it’s whether the platform can demonstrate these standards in practice. Membership is a positive signal, but investors should still verify how their gold is backed, audited, and held before investing. At Stoex, we’ve always believed investors shouldn’t have to rely on trust alone. That’s why our approach focuses on making ownership, custody, and verification transparent, allowing investors to evaluate the structure before they invest.

FAQs on Digital Gold Self-Regulatory Body  

1. What is DPMACI?

The Digital Precious Metals Assurance Council of India (DPMACI) is a self-regulatory body created to establish transparency, audit, custody, and consumer protection standards for digital gold and silver platforms.

2. Why was a self-regulatory body created for digital gold?

Digital gold currently operates outside SEBI’s regulatory framework. DPMACI aims to create industry-wide standards that improve investor confidence and consumer protection.

3. Does the creation of DPMACI make digital gold completely safe?

No. DPMACI is a voluntary self-regulatory body, not a statutory regulator like SEBI. It raises the baseline but can’t enforce penalties or guarantee investor recovery if a platform fails. Investors should still verify each platform’s audit, trustee, and custody structure independently.

4. What should investors check before buying gold on any platform?

Look for physical backing, independent audits, custody arrangements, grievance redressal mechanisms, and clear disclosure of storage and insurance practices.

5. How can I verify that my gold actually exists?

Check whether the platform provides independent audit reports, transparent ownership records, and clear information about where and how your gold is stored.

6. Is DPMACI recognized by SEBI?

No. DPMACI is not recognized by SEBI. It is an industry-led self-regulatory body established by digital precious metals platforms. The council has announced plans to seek formal recognition from the government, likely through the Ministry of Finance or the Ministry of Consumer Affairs, but no approval has been granted yet. 

7. Which platforms are DPMACI members?

DPMACI’s founding members are MMTC-PAMP, SafeGold, and Augmont on the bullion side, and PhonePe, BharatPe, MobiKwik, Gullak, LendenClub, and CRED on the distribution side.

8. How is DPMACI different from SEBI regulation?

SEBI is a statutory regulator with legal enforcement powers over the products it regulates, such as Gold ETFs. DPMACI is a voluntary industry body: it sets standards for its members and can apply reputational and membership pressure, but it cannot fine platforms or force compliance the way a statutory regulator can.

9. Is Digital Gold (and Silver) Safe in India? DPMACI’s Silver Standards

Yes. DPMACI’s standards for 1:1 physical backing, independent audits, and segregated custody apply to digital silver as well as digital gold, since several founding members sell both metals through the same platforms.

Is Digital Gold Safe in India? The Real Test of Trust

The launch of DPMACI shows the digital gold regulation in India is finally moving toward clearer rules, better accountability, and more consumer protection.

But rules alone are not enough. Investors still need to ask the right questions: Who holds my gold? Is digital gold safe in India in 2026? Can I verify it? Is it independently audited? What happens if the platform shuts down?

Those answers matter more than any promise. And that is exactly why Stoex was built differently from day one, so investors can check the structure for themselves before they invest. See Stoex’s live audit reports, custody structure, and DPMACI-aligned standards before you invest a rupee.