The Digital Precious Metals Assurance Council of India (DPMACI) is actively pursuing formal recognition from India's finance or consumer affairs ministry, according to Chairperson Nirupama Soundararajan. As reported by Business Standard, the recently-formed association will function as an industry-driven self-regulatory organisation but seeks formal government endorsement. Soundararajan emphasized that while an SRO operates independently, securing ministry recognition would provide greater credibility and regulatory framework support.
DPMACI is developing comprehensive guidelines that will include 1:1 physical metal backing requirements verified through periodic audits of companies, along with customer protection measures. According to Business Standard, the code of conduct will establish standardized processes for member companies and is expected to be finalized soon. The association represents eight members including major players such as MMTC-PAMP, SafeGold, Augmont, PhonePe, BharatPe, Mobikwik, Gullak, Lenden Club and Cred.
The association plans to engage with ministries and regulators to establish a comprehensive regulatory framework for digital precious metals. As reported by Business Standard, Soundararajan explained that DPMACI will work with policymakers to identify the most appropriate ministry for spearheading this regulatory framework, involving consensus building within the ecosystem. The code of conduct is designed to evolve into a starting point for building future regulatory frameworks, complementing rather than replacing existing regulations.
The digital gold market has experienced significant growth, with 254.44 million transactions worth ₹3,171.96 crore processed in March 2026 alone, representing a substantial increase from 64.96 million transactions worth ₹866.43 crore in March 2025. According to National Payments Corporation of India (NPCI) data reported by Business Standard, this growth is attributed to ease of purchase through payment methods such as Unified Payments Interface (UPI) on a recurring basis. The absence of regulatory oversight had previously raised concerns about physical vaulting standards.
DPMACI is currently identifying an independent third-party audit firm to ensure companies maintain proper 1:1 physical backing for digital precious metals. As reported by Business Standard, this initiative addresses previous concerns about the absence of regulatory framework governing physical vaulting of digital precious metals. The association will also implement customer protection measures including timely resolution of complaints, ensuring accountability and good governance principles while prioritizing consumer protection in the digital precious metals sector.
