UPI Push Drives 377% Surge in Digital Gold Transactions to ₹1,184 Crore

India's shift to online gold investment continues gaining traction, with digital gold witnessing a 377% surge in UPI-based transactions over the past 16 months. Convenience, rising gold prices, and smaller-ticket purchase options are bringing more retail investors to this segment.

Digital Gold Transactions Rise Sharply Through UPI

Between April 2024 and August 2025, digital gold purchases made via UPI rose from 20.92 million to 99.77 million, an increase of 377%. During the same time frame, the transaction value jumped from ₹550 crore to ₹1,184 crore. 

Rising Gold Prices Fuel Interest

The soaring price of 24-karat gold has further boosted investment interest. As of August 2025, the price for 1 gram of 24-karat gold stood at ₹11,021, reflecting a 44% year-on-year growth from ₹7,633 in the same month last year.

Integration with Retail and Jewellery Channels

Digital gold has become a popular savings option, with platforms such as MMTC-PAMP, Augmont Goldtech, and jewellers like Tanishq and Senco offering customers the ability to buy and store gold digitally in secure vaults. Buyers receive digital certificates that can later be redeemed for physical gold or cash, adding flexibility and convenience.

However, the Securities and Exchange Board of India (SEBI) has clarified that digital gold products do not fall under its regulatory purview, as they are neither classified as securities nor governed under any SEBI framework. This means investors purchasing digital gold via platforms like PhonePe, Paytm, or Google Pay should exercise caution, as these offerings are unregulated by the market watchdog.

Read More: UPI Raises Transaction Limits: Now Pay Up to ₹10 Lakh for Big Purchases! 

Conclusion

The surge in digital gold transactions reflects India's rapid digital transformation and rising interest in small-ticket investment options. With UPI offering unmatched convenience, digital gold is likely to remain a preferred choice for tech-savvy and budget-conscious investors.

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