Digital Gold May Get RBI–SEBI Oversight: What It Means for You (2026)
India is considering rules requiring every unit of digital gold to be backed by physical gold. Here's what changes, what doesn't, and what to check in your gold app.
Digital Gold Is About to Grow Up. Here's What That Means for Your ₹50-a-Day Habit
If you buy digital gold, one piece of news from this month matters more than any price chart.
India's finance ministry has begun discussions on tightening rules for digital gold, including a requirement that every unit be backed by physical bullion and a framework placing the product under the joint oversight of the RBI and SEBI, as the Economic Times reported on 18 September.
Here is a plain explanation of what's happening, why it matters, and what you should check in any gold app you use.
First, what's actually changing?
Nothing yet. The proposal is under consideration and has not been enacted. The direction is clear, though. The main idea being discussed is classifying digital gold as a security under the Securities Contracts (Regulation) Act, 1956, which would give regulators the authority to enforce standardized operational and safety rules.
If the proposal goes through, companies could be required to keep matching physical gold, report holdings regularly and allow independent checks.
Why now?
Digital gold has quietly become one of India's biggest retail savings habits. Industry estimates put the market at about $3 billion in assets, with an average ticket size of around ₹100. In January 2026 alone, digital gold platforms recorded around ₹3,926 crore in transactions.
The rules haven't kept up with that growth. In November 2025, SEBI cautioned investors that these products are not recognised as securities or regulated commodity derivatives, and that no securities-market investor protection mechanisms would cover them. The industry responded with self-regulation. Leading players set up the Digital Precious Metal Assurance Council of India (DPMACI), with standards for 100% physical backing, regular independent audits and grievance redressal.
The government's proposal would take that self-discipline and make it enforceable.
Is this good or bad news for you?
For savers, it's mostly good news.
Stronger backing. Today, the reliability of digital gold holdings depends heavily on the internal processes of platforms and their bullion partners. Formal oversight could bring mandatory audits, standardized storage practices and clearer custody norms.
Closer to Gold ETFs. Gold ETFs are already governed by SEBI, with physical gold held in audited vaults, and the new framework is likely to push digital gold platforms toward a similar model.
A possible trade-off. The shift may raise operational costs for platforms, since they would need to meet higher compliance standards. Some weaker apps may shut down or merge. That's another reason to choose carefully now.
Gold itself hasn't lost its appeal. As of 27 September, 24K gold stands at ₹15,268 per gram. At that price, small daily amounts are how most young Indians can realistically build a meaningful gold holding.
5 questions to ask your digital gold app today
You don't have to wait for the regulation. Ask these now:
Who is the bullion partner? It should be a named, established refiner or bullion company.
Is there an independent trustee? A trustee means your gold is held for you, not owned by the app.
Are vaults audited, and how often? Look for third-party audits, not just internal claims.
Can I take delivery or sell anytime? Check minimum redemption quantities and delivery charges.
What's the buy–sell spread and GST? Know your real cost before you judge your returns.
If an app can't answer these clearly, that tells you something.
Where Flamingo stands
Flamingo was built for people who want to save in gold steadily, not speculatively. You can start with ₹50 a day, keep it going through AutoPay, and track your progress with streaks and milestones.
Your gold is bought through Augmont, one of India's established bullion companies. [VERIFY: vaulting, trustee and audit details before publishing]
Every rupee you invest maps to real 24K gold. [VERIFY with Augmont's backing documentation]
We follow regulatory developments closely and will adapt quickly as the framework is finalised.
Regulation doesn't change why daily gold saving works. Small, consistent amounts add up, and consistency beats timing.
Start your ₹50/day gold habit on Flamingo → Download
Disclaimer: This article is for information only and is not investment advice. Digital gold is currently not regulated by SEBI or RBI. The regulatory framework described is a proposal under discussion and may change. Please assess your own risk before investing.