India weighs RBI-SEBI oversight and physical backing rules for digital gold
The finance ministry is considering a framework that could require digital-gold platforms to maintain physical bullion backing, with rules on custody, audits, redemption and investor protection. The proposal remains under discussion, with no implementation timeline announced.
What happened
retail-company · India’s finance ministry is considering RBI-SEBI oversight and mandatory physical bullion backing for digital gold. Proposed rules could
Key facts
- ₹10
- ₹100
- $3 billion
- Securities Contracts (Regulation) Act, 1956
- November 2025
Why this matters
Digital-gold operators should prepare for stricter bullion custody, audit, redemption and investor-protection requirements that could raise compliance costs but improve consumer trust.
What to watch
- Finance Ministry consultation paper or inter-ministerial proposal defining digital gold and its regulator.
- RBI or SEBI clarification on whether digital-gold providers require registration, licensing or intermediary status.
- Mandates for minimum physical backing, permitted custody structures, audit frequency and publication of reserve reports.
- Rules on fractional ownership, transferability, minimum redemption quantities, delivery timelines and pricing spreads.
- Enforcement actions, consumer complaints or redemption failures involving major platforms.