WGC urges finance ministry, RBI to draft guidelines for digital gold biz in India 

Highlighting the scale of digital gold adoption, the council noted that over 120 million customers have engaged in digital gold transactions, with approximately 40 million currently holding digital gold assets 

New Delhi:  The World Gold Council (WGC), an international trade association, has appealed to India’s finance ministry and the Reserve Bank of India (RBI) to establish clear guidelines and regulatory frameworks for the burgeoning digital gold sector in the country. 

According to a report by a news outlet, the WGC emphasized the need for robust checks and balances to safeguard digital gold purchases made by consumers. The council underscored the importance of transparency in transactions and secure mechanisms for holding digital gold assets. 

Highlighting the scale of digital gold adoption, the council noted that over 120 million customers have engaged in digital gold transactions, with approximately 40 million currently holding digital gold assets. 

The call for regulatory oversight comes amid fluctuations in gold prices that impacted India’s gold consumption, which fell to 562.2 tonnes in 2023 from 600.6 tonnes in jewellery demand in 2022, as reported by the World Gold Council. 

Jain stressed the necessity to nurture a structured growth trajectory for the digital gold market, aiming to foster micro-savings in gold through transparent digital platforms while preventing misuse by illegitimate operators. 

“The government should introduce guidelines aligned with broader economic agendas for digital asset digitization,” Jain emphasized. 

In the Indian fintech landscape, Bengaluru-based Plus Gold stands out as one of the few platforms offering digital gold purchasing capabilities. Additionally, a recent 2024 survey indicated that 14% of Indian women prefer gold as an investment choice, surpassing real estate and equities. 

All gold assets, whether physical or digital, are insured and securely stored by Augmont, a digital gold provider affiliated with RiddiSiddhi Bullions (RSBL), ensuring comprehensive security measures. 

Retail Jeweller India News