Digital gold purchases via UPI rebounded in December to ₹2,079 crore, recovering from a November slump triggered by SEBI's caution. This advisory highlighted that digital gold products were outside regulatory oversight, impacting fintech platforms. October saw the year's highest purchase value before the dip.
Digital Gold Sees December Rebound
Digital gold purchases executed through the Unified Payments Interface (UPI) experienced a significant rebound in December. This surge reversed a contraction seen in November, a slowdown attributed to cautious statements from the markets regulator.
Transaction Volumes Recover
The value of digital gold transactions reached ₹2,079.31 crore across 183.32 million payments in December. This marked a strong recovery from November's figures, which saw ₹1,215.36 crore transacted via 123.42 million payments. October had previously recorded the highest purchase value for 2025, totaling ₹2,290.36 crore from 115.95 million transactions, according to data from the National Payments Corporation of India (NPCI).
SEBI's Caution Creates Uncertainty
In November, the Securities and Exchange Board of India (SEBI) issued an advisory stating that digital gold products fell outside its regulatory purview. This meant regulators could not verify the physical gold reserves held by fintech platforms, raising questions about the underlying asset's presence and purity. Such platforms operate outside SEBI's direct oversight.
Fintech Platforms Face Challenges
The SEBI advisory created difficulties for several fintech companies. Firms like Jar, Gullak, PhonePe, and Paytm offer digital gold purchase options to users in India. The reliance on payment gateways like UPI, coupled with recurring payment options such as UPI Autopay, has facilitated easy small-ticket investments in digital gold, a model now under regulatory scrutiny.
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