Axis Bank to Phase Out Digital Gold Services via SafeGold by Year-End 2025

BANKINGFINANCE
Whalesbook Logo
AuthorAbhay Singh|Published at:
Axis Bank to Phase Out Digital Gold Services via SafeGold by Year-End 2025
Overview

Axis Bank is ending its digital gold purchase services through SafeGold by December 31, 2025. Purchases will stop on November 30, 2025, and all Systematic Investment Plans (SIPs) will also halt. Customers can continue using SafeGold directly or migrate holdings to a SafeGold Wallet. The bank cited streamlining product offerings, and the move follows SEBI advisories on unregulated digital gold products.

Axis Bank has announced a phased withdrawal from its digital gold offering, in partnership with SafeGold. The bank will gradually discontinue all services related to Digital Gold, including purchases, sales, redemptions, and home delivery, across its Internet Banking and Mobile Banking platforms. The entire process is scheduled to conclude by December 31, 2025.

Key timelines for customers include the cessation of digital gold purchases through Axis Bank platforms from November 30, 2025. All active Systematic Investment Plans (SIPs) for digital gold will also be halted on the same date. Customers wishing to continue their digital gold investments are advised to transact directly via the SafeGold mobile app or website. Furthermore, existing digital gold holdings will need to be migrated to the SafeGold Wallet to remain accessible.

Axis Bank has stated that this decision is part of its broader effort to streamline its product offerings on digital channels. While the bank did not link the discontinuation to any specific regulatory developments, the announcement comes at a time when the Securities and Exchange Board of India (SEBI) has issued public advisories concerning digital gold products. SEBI has warned that many digital gold offerings fall outside its regulatory purview, are not recognized as securities or regulated commodity derivatives, and may pose risks related to counterparty reliability, storage, and redemption.

Impact
This news directly affects Axis Bank customers who use the bank's digital channels to invest in digital gold. It signals a potential strategic shift for the bank in its digital product portfolio and may prompt other financial institutions to re-evaluate their similar offerings, especially in light of increasing regulatory scrutiny. The move also highlights the risks associated with unregulated financial products.

Impact Rating: 6/10

Definitions:
Digital Gold: A method of investing in gold electronically. Customers buy small quantities of physical gold online, which is then held by a custodian, allowing for investment without physical possession.
SIP (Systematic Investment Plan): An investment strategy where a fixed amount of money is invested at regular intervals (e.g., monthly) into an asset, helping to average the purchase cost over time.

Disclaimer:This content is for educational and informational purposes only and does not constitute investment, financial, or trading advice, nor a recommendation to buy or sell any securities. Readers should consult a SEBI-registered advisor before making investment decisions, as markets involve risk and past performance does not guarantee future results. The publisher and authors accept no liability for any losses. Some content may be AI-generated and may contain errors; accuracy and completeness are not guaranteed. Views expressed do not reflect the publication’s editorial stance.