Business
Are You Buying ‘Unregulated’ Digital Gold? Know This Before Investing
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According to the World Gold Council (WGC), Indians bought an estimated 12 tonnes of digital gold between January and November this year
SEBI has warned investors of risks, prompting calls for self-regulation to boost investor confidence and ensure secure, audited holdings.
The country’s fascination with gold has gone online, and the shift is happening at breakneck speed. What was once largely a jewellery-driven market has now spawned a booming trade in “digital gold”, popular especially among first-time and young investors. And it is growing despite a clear warning from the markets regulator that this product is outside the regulatory net.
Many investors confuse digital gold with gold exchange-traded funds (ETFs). But the two are very different. ETFs are regulated financial securities. Digital gold, on the other hand, is simply gold bought and stored on a private fintech platform, and it is not governed by SEBI or commodity market rules.
What Is An ETF?
An exchange-traded fund, or ETF, is a market-linked investment product that trades on the stock exchange just like a share. A gold ETF tracks the domestic gold price and is backed by physical gold held by a custodian. Investors need a demat account to buy or sell ETF units, and the product is fully regulated by SEBI, making it part of the formal financial system, unlike digital gold.
Yet the appetite is unmistakable. According to the World Gold Council (WGC), Indians bought an estimated 12 tonnes of digital gold between January and November this year. The estimate is based on National Payments Corporation of India (NPCI) data on UPI transactions, released for the first time, and pegs the value of these purchases at around Rs 16,670 crore at current Mumbai spot prices for 24-carat gold. Industry officials say the figure was close to 8 tonnes last year, pointing to a sharp year-on-year jump.
The appeal is simple. Buyers do not have to worry about storage, theft, or purity. Transactions happen online through fintech apps, and purchases can start from as little as Re 1. That micro-ticket entry point has made the product a hit among millennials and Gen Z.
But the November advisory from SEBI was a reality check. The regulator reiterated that digital gold is not a recognised security and remains outside the formal market framework, unlike gold ETFs and electronic gold receipts, which are fully regulated. Industry players admit purchases dipped after the warning, though buying has continued.
Sachin Jain, WGC’s regional CEO for India, told Economic Times that gold remains a core household asset and digital formats simply extend that tradition. Digital gold makes it easier to access gold through fractional ownership and transparent, market-linked prices, and it removes worries about storage and purity, he said, adding that digitalisation is key to keeping gold relevant.
The market is currently dominated by MMTC-PAMP, Augmont and SafeGold, which store physical bullion in vaults against the digital units sold. Investors can liquidate their holdings instantly on the platform, adding to its attraction.
To address regulatory gaps, the India Bullion and Jewellers Association (IBJA) is setting up a self-regulatory organisation (SRO) that will begin onboarding digital gold companies from January. The proposed framework will mandate full physical backing of customer holdings, secure vault storage, regular audits and minimum net-worth criteria for players. “We are developing technology to onboard and regulate digital gold players. All digital gold companies will be audited from time to time. This will increase investor confidence and deepen the market,” IBJA national secretary Surendra Mehta said. The rules are expected to be ready by March-end or early April.
Industry insiders say nearly two-thirds of digital gold buyers are in the millennial and Gen Z brackets. A senior executive at a leading platform admitted there was a lot of confusion after SEBI’s advisory, with many buyers temporarily stepping back before returning.
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December 26, 2025, 17:20 IST
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A rejected critical illness claim may not be the final word if the policy clearly covers the condition.
Policyholders can successfully challenge unfair decisions.(Representative Image)
A policyholder recently faced trouble after his/her spouse was diagnosed with a serious brain-related illness. The condition was identified as bacterial meningitis with encephalitis. Believing the illness was covered, the family filed a critical illness claim with their insurer.
However, the insurance company turned down the request. The reason given was that the illness did not fall under the list of covered conditions. This left the family confused and unsure about the next step, especially at a time when medical stress and costs were already high.
Why A Rejected Claim May Still Be Valid
A claim rejection does not always mean the insurer is right. The first step is to read the policy document carefully. Most critical illness plans clearly list the illnesses they cover. In many policies, bacterial meningitis is included, but only if certain medical conditions are met.
In a similar case, a close review of the policy showed that the illness was listed among 32 covered conditions. The medical records also clearly confirmed the diagnosis and seriousness of the disease. When both the policy terms and medical proof match, the rejection can be questioned.
How To Raise The Issue With The Insurer
The next step is to approach the insurer’s grievance team. This means sending a clear written request that explains why the claim should be accepted. It is important to point out the exact policy clauses and attach all medical reports.
In the case mentioned, the policyholder shared hospital records, diagnosis details, and proof of treatment. Despite this, the insurer stuck to its earlier decision and did not provide any new explanation. This is when many people give up, but there is still another option available.
When The Insurance Ombudsman Can Help
If the insurer does not resolve the issue, the policyholder can approach the insurance ombudsman. Filing a complaint here does not cost anything. The ombudsman reviews both the policy terms and the medical evidence.
During the hearing in this case, the policyholder submitted hospital documents and a doctor’s certificate. The records confirmed that the patient had a lasting brain-related problem for over six weeks, which is an important requirement in many critical illness policies. The insurer failed to provide proof to challenge these findings.
What This Case Teaches Policyholders
After reviewing all details, the ombudsman ruled in favour of the policyholder and asked the insurer to pay the claim amount to the nominee. This shows that unfair claim rejections can be overturned if the policy terms are clear and the documents are in order.
It is always wise to read your policy closely, keep complete medical records, and use the grievance and ombudsman process when needed. Many rejected claims can be resolved because the facts and the policy are on the customer’s side.
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December 27, 2025, 09:33 IST
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Business
India’s Forex Reserves Surge $4.36 Billion To $693 Billion, Gold Holding Rises $2.6 Billion
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India’s Latest Forex Reserves: The value of the gold reserves jumps $2.623 billion to $110.365 billion during the week ended December 19.
India’s Latest Forex Reserves.
India’s foreign exchange (forex) reserves surged $4.368 billion to $693.318 billion during the week ended December 19, according to the latest data from the Reserve Bank of India (RBI). The value of the gold reserves jumped $2.623 billion to $110.365 billion during the week.
The overall kitty had increased by $1.689 billion to $688.949 billion in the previous week.
For the week ended December 19, foreign currency assets, a major component of the reserves, increased by $1.641 billion to $559.428 billion, according to the Reserve Bank of India’s latest ‘Weekly Statistical Supplement’ data.
Expressed in dollar terms, the foreign currency assets include the effects of appreciation or depreciation of non-US units, such as the euro, pound, and yen, held in the foreign exchange reserves.
The special drawing rights (SDRs) were up by $8 million to $18.744 billion.
India’s reserve position with the IMF was up by $95 million to $4.782 billion in the week, according to the RBI data.
The price of the safe-haven asset gold has been on a sharp uptrend over recent months, perhaps amid heightened global uncertainties and robust investment demand.
After the last monetary policy review meeting, the RBI had said that the country’s foreign exchange reserves were sufficient to cover more than 11 months of merchandise imports. Overall, India’s external sector remains resilient, and the RBI is confident it can comfortably meet external financing requirements.
In 2023, India added around $58 billion to its foreign exchange reserves, contrasting with a cumulative decline of $71 billion in 2022. In 2024, reserves rose by just over $20 billion. So far in 2025, the forex kitty has increased by about $47-48 billion, according to data.
Foreign exchange reserves, or FX reserves, are assets held by a nation’s central bank or monetary authority, primarily in reserve currencies such as the US dollar, with smaller portions in the Euro, Japanese Yen, and Pound Sterling.
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December 27, 2025, 08:17 IST
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MUMBAI: The Irdai on Friday, fined Reliance General Insurance Rs 1 crore in Hyderabad for routing unauthorised payouts through marketing and awareness expenses that amounted to disguised commissions. The penalty follows Irdai’s examination of transactions across FY19, FY20 and FY21. According to the regulator, the insurer channeled payments to brokers, agents, corporate agents and unlicensed entities under labels such as consumer awareness, marketing and advertising.
Critical Illness Claim Rejected? Here’s How You Can Fight Back
India’s Forex Reserves Surge $4.36 Billion To $693 Billion, Gold Holding Rises $2.6 Billion
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