Mumbai, November 9, 2025 — The Securities and Exchange Board of India (SEBI) has warned people to be very careful while buying Digital Gold from apps and online platforms.
Many popular fintech and UPI apps promote digital gold as an easy and safe way to invest. Most apps allow digital gold as a cashback or bonus, but SEBI says these products are not regulated by any government body — meaning if something goes wrong, no one is responsible for protecting your money.
What SEBI Actually Said: Today
In its official press release titled “Caution to public regarding dealing in Digital Gold” (official SEBI release here you can read), SEBI explained that:
“Digital gold products are neither notified as securities nor regulated as commodity derivatives. They operate entirely outside the purview of SEBI.”
In simple words:
SEBI means that these gold products sold on apps are not checked, verified, or approved by SEBI or any regulator.
So, if a company or your app shuts down or refuses to deliver your gold, you cannot file a complaint with SEBI or get legal help under its rules.
Digital Gold vs Regulated Gold Products
| Feature | Digital Gold | Gold ETF | Electronic Gold Receipt (EGR) | Sovereign Gold Bond (SGB) |
|---|---|---|---|---|
| Regulator | None | SEBI | SEBI | RBI / Govt. of India |
| Backed by Physical Gold | Claimed by the platform | Yes (verified custodian) | Yes (exchange verified) | Govt. backed |
| Liquidity | App-based | Stock Exchange | Stock Exchange | 5–8 yrs (tradable) |
| Storage & Security | Platform controlled | Custodian Bank | Exchange Vault | Govt. Issued |
| Investor Protection | None | SEBI Rules Apply | SEBI Rules Apply | Sovereign Guarantee |
| Average Annual Return (past 5 yrs) | 7–8% (depends on price) | 7–8% + regulated | 7–8% + regulated | 7–8% + 2.5% interest |
| Risk Level | High | Low | Low | Lowest |
EaseMoney Take: Digital gold might appear convenient, but when compared side-by-side, its biggest gap is clear — no regulator, no safety net.
Why SEBI Said This
Over the last few years, many apps have started selling digital gold, letting people “buy” small quantities for ₹10 or ₹100.
But SEBI found that these companies:
- are not under any law or regulator,
- don’t have to show proof of real gold stored, and
- may not return the gold if their platform shuts down.
SEBI’s warning is simple — don’t treat digital gold like a bank FD, real-life gold, or mutual fund investment. It’s a private deal, not a protected one.
Real-Life Example
Take Rakesh, a 32-year-old from Pune.
He bought ₹1.2 lakh worth of digital gold on an app during 2022–23. Later, when the app paused withdrawals, he realised he could not complain anywhere — the company wasn’t under SEBI or RBI.
“It looked official — 24K written everywhere, KYC done — I never thought it wasn’t government-approved,” he said.
Safer Ways to Invest in Gold
As per the press release, SEBI reminded investors that safer and fully regulated ways already exist:
- Gold ETFs (via mutual funds)
- Electronic Gold Receipts (EGRs) traded on exchanges
- Sovereign Gold Bonds (SGBs) issued by the Government of India
These options are backed by laws, regulators, and investor protection rules — unlike digital gold sold on apps.
India’s Growing Obsession with Digital Gold
- Indians have always trusted gold — and now, that trust has moved to mobile apps.
- Every year, people buy digital gold worth around ₹4,000 crore through fintech platforms.
- Apps like PhonePe, Paytm, Google Pay, and Groww promote digital gold as an easy and “safe” way to save.
- You can start with as little as ₹10 or ₹100, which attracts young investors looking for small, flexible options.
- But here’s the catch — SEBI and RBI do not regulate digital gold.
- This means if the company or app fails, there’s no legal protection for your money or gold.
- SEBI’s recent warning is meant to make investors aware that digital gold is not the same as gold ETFs, SGBs, or EGRs, which are all properly regulated.
- Many users still believe these products are government-approved, which SEBI says is a wrong and risky assumption.
Easemoney Insight
- Digital gold looks easy, modern, and flexible — but it’s not officially protected.
- Real safety comes from regulation, not from glossy app designs or gold icons.
Before buying, always ask one simple question:
“Is this approved by SEBI or RBI?”
If the answer is no, think twice before investing.
