India's digital precious metals sector has established the Digital Precious Metals Assurance Council of India (DPMACI), a self-regulatory organisation created to standardise practices and strengthen consumer protection across platforms offering digital gold and silver. According to reports from CNBC TV18, this industry-led initiative brings together several key players in the ecosystem, including MMTC-PAMP, SafeGold, Augmont, PhonePe, BharatPe, MobiKwik, Gullak, Lenden Club and CRED, among others operating in the digital metals space. The council is led by public policy veteran Ms. Nirupama Soundararajan as Independent Chairperson, who emphasizes that the formation marks a pivotal step for the industry by proactively instituting common frameworks of transparency and rigorous standards.
The SRO framework establishes industry-wide guidelines covering physical backing of digital holdings, audit requirements, custodial arrangements and disclosure norms. As reported by CNBC TV18, the council proposes a 1:1 backing of digital holdings with physical precious metals, supported by periodic independent audits and adherence to recognised good delivery standards. The enhanced framework mandates independent audit firms to conduct rigorous checks, ensuring physical precious metal holdings precisely match customer balances. All assets will be secured through independent custodians or vaults, with clear norms established on vaulting, storage, insurance, and disclosure standards. An ombudsman mechanism is planned to address customer grievances within defined timelines, while customer funds will be routed through segregated accounts under the supervision of an independent trustee to protect assets in case of intermediary insolvency.
Nirupama Soundararajan has been appointed as Independent Chairperson to lead the council's governance framework and stakeholder engagement. According to CNBC TV18, the organisation will also act as an interface with policymakers to support regulatory alignment and industry-wide compliance practices. As reported by The Economic Times, the DPMACI aims to uphold consumer trust while allowing a technology-first, dynamic growth path for the industry by aligning major sellers and distributors under a unified code of conduct. The council will engage government and policy stakeholders to ensure a transparent, accountable and consumer-friendly ecosystem, with the independent trustee ensuring customer assets are protected during intermediary insolvency scenarios.
The initiative is positioned as an attempt to align India's growing digital metals market with broader global practices around transparency and operational oversight. As reported by CNBC TV18, an official portal has been launched outlining governance standards and grievance redressal processes. The council aims to establish common operational standards for market participants while improving transparency and investor protection in the digital precious metals sector. According to The Economic Times, this initiative aligns India's surging digital metal market with global best practices, replacing ambiguity with verified certifications and proactive compliance reviews. The framework reinforces consumer protection and market credibility through institutionalised practices like independent audits and clear custodial safeguards.
