11:11 AM IST – Customers across India woke up to a surprising twist this end of the week: Axis Bank is officially winding down its entire Digital Gold service, and it’s not just a rumour anymore. After early reports surfaced via CNBCTV18 and ScanX Trade, Axis Bank has directly communicated with account holders, confirming that every Digital Gold feature — buying, selling, redeeming, and even home delivery — will be phased out.
And the biggest shock? Complete shutdown by 31 December 2025.
This is one of the biggest moves by a bank in India’s digital-gold space.
Axis Bank’s Message to Customers Clears the Air
Axis Bank’s internal message makes it clear:
Digital Gold will be removed step-by-step from both Internet Banking and the Axis Mobile app. Many customers have already noticed that buying is not working, and more limits may appear in the coming days.
Even though the bank has not put out a public press release, the customer message confirms the decision.
Why Is Axis Bank Stopping Digital Gold?
1. SEBI’s November Warning Changed Everything
On 8 November 2025, SEBI reminded everyone that Digital Gold is not a regulated product.
This means there is no official protection, rules, or monitoring for these gold units sold online.
For a big bank handling millions of customers, this becomes a risk — especially if something goes wrong in the future.
2. Storage & Delivery Issues Can Become Bank Problems
Digital gold companies like SafeGold, Augmont and MMTC-PAMP store real gold in private vaults. But if there’s ever a delay, mistake, or dispute, customers often call the bank first.
Banks prefer avoiding problems they cannot fully control — and Digital Gold is exactly that kind of product.
3. Digital Gold Firms Are Now Looking Toward Government-Linked Options
Since SEBI’s warning, many digital-gold players have started exploring safer models like Electronic Gold Receipts (EGRs), which work under official exchange systems.
This shows that even the digital gold companies understand the need for more trust and stronger rules.
India’s Digital Gold Snapshot
| Point | Current Situation |
|---|---|
| Regulation | Not covered by SEBI/RBI |
| Industry Trend | Moving towards govt-linked models |
| Market Size | INR 155 billion (around $18-20 billion USD) as of October 2025 |
| Bank Support | Reducing after SEBI warning |
Unlike Earlier Banking Blocks
- Unlike UPI failures or card outages, this is not a temporary issue.
- Unlike gold ETFs or SGBs, Digital Gold has no official regulator behind it.
- Unlike earlier payment restrictions, this is a planned and permanent exit.
Bottom Line: A Changing Market
After SEBI’s advisory, trust in Digital Gold took a clear hit. Most major digital-gold companies are now exploring ways to come under a proper government or exchange-backed system instead of staying fully private. According to a recent report by Mint, several Digital Gold firms may even approach the government directly if SEBI does not take up the responsibility of regulating them.
For users, this is a good time to:
- Check your Digital Gold balance
- Redeem if needed
- Follow updates from your digital-gold provider
- Consider safer, regulated gold options for long-term use
Read – Who Really Controls Your Digital Gold? Inside the UPI Gold System SEBI Can’t Regulate
