Complaints related to the sale and purchase of digital gold have risen steadily over the last five years, Parliament was informed on December 15. The number of complaints climbed from 17 in 2020 to 112 in 2025, as of November, according to data shared by the finance ministry.
In a written reply to the Lok Sabha, minister of state for finance Pankaj Chaudhary said states across India had received a total of 371 complaints linked to digital gold transactions during the five-year period. The response was to a question seeking year-wise and state-wise details, including figures from Andhra Pradesh.
A key concern around digital gold is the absence of regulatory oversight. Digital gold products are not regulated by the Securities and Exchange Board of India or the Reserve Bank of India. As a result, investors do not have access to the safeguards, disclosures or grievance redressal mechanisms that apply to regulated financial products.
There is also no independent framework to verify claims made by digital gold sellers regarding physical gold backing, storage standards or audit practices. This lack of transparency has raised concerns around investor protection and operational risk.
The markets regulator SEBI has previously cautioned investors about digital gold. In a press release issued on November 8, 2025, SEBI clarified that digital gold and e-gold products offered by online platforms are distinct from regulated gold investment instruments.
SEBI noted that regulated options include gold Exchange Traded Funds offered by mutual funds and Electronic Gold Receipts traded on stock exchanges, both of which operate under defined regulatory frameworks.
The finance ministry also informed Parliament that the government has not launched any specific campaigns or initiatives to create awareness about digital gold investments. Responding to a separate query, the ministry said no such programmes were currently in place.
The only public advisory referenced was SEBI’s press release aimed at informing investors about gold-related financial products and associated risks.
Despite the growing number of complaints, digital gold usage continues to rise sharply. Data from the National Payments Corporation of India shows that digital gold purchases through UPI surged to 123.42 million transactions in November 2025.
This represents a 142.3% increase compared with January 2025, when transaction volumes stood at 50.93 million. The value of digital gold purchases via UPI also rose significantly, climbing 59.4% to ₹1,215 crore in November from ₹762 crore in January.
The contrast between rising transaction volumes and increasing complaints points to a widening gap between adoption and awareness. As digital gold becomes more accessible through payment apps, the absence of regulation and structured investor protection remains a key issue, particularly for first-time investors entering the space.
