10 Nov: After SEBI’s recent warning on the last press release on 08 November 2025, about Digital gold, many people and investors are asking and searching: Is digital gold banned in India?
The simple answer — No, it isn’t illegal and banned.
But it’s also not regulated by SEBI or RBI. And that’s where investors need to be alert.
What SEBI Said
SEBI issued an investor caution saying that digital gold — the kind sold through apps like PhonePe, Paytm, Jar, and Google Pay — does not come under any regulator.
That means these products don’t have the legal protection that SEBI-supervised investments enjoy.
If something goes wrong, there’s no regulator to complain to — you’ll have to deal directly with the company that sold it to you.
SEBI’s point is clear: Buy digital gold only if you fully understand the risks.
How Digital Gold Actually Works
When you buy “digital gold” online, you’re really entering a private deal with a company like SafeGold or MMTC-PAMP.
They claim to keep your gold in a secure vault, insured and redeemable when you want.
But this is all based on a private contract, not a SEBI-approved framework.
So, if a platform shuts down or delays redemption, your legal remedy is through civil court or your general court — not through any financial authority such as RBI Sachet, SEBI, and govt portal.
Where Digital Gold Stands Legally
| Gold Type | Regulated By | Legal Backing | Safety for Investors |
|---|---|---|---|
| Digital Gold (SafeGold, MMTC-PAMP) | None | Private contract By your selected firm | Unregulated |
| Gold ETF | SEBI | Securities Contracts Act 1956 | Fully regulated |
| Sovereign Gold Bond (SGB) | RBI | RBI Act 1934 | Government-backed |
| EGR (Electronic Gold Receipt) | SEBI | Exchange-based | Regulated |
Know Your Providers
- SafeGold – Started in 2017, lets users buy 24K gold from ₹10. Partners with PhonePe, Jar, and others. Stores gold in insured vaults but operates under contract law.
- MMTC-PAMP – A joint venture between the Indian government’s MMTC Ltd and Switzerland’s PAMP SA. Known for high purity (99.9%) and strong brand trust, yet its digital offering is also outside SEBI control.
Together, these two handle most of India’s ₹6,000-crore digital gold market.
The Bottom Line
Digital gold is still legal to buy, sell, or hold. But unlike SGBs or ETFs, no regulator is watching your back.
So before you invest again, check who actually stores your gold, read the fine print, talk to the firm where you are getting digital gold, check their terms and conditions, most firms allow instant withdrawal, and remember:
In digital gold, the shine is real — but the safety net isn’t.
Covering SEBI –
