Digital Gold Purchases via UPI Show Impressive Growth in March 2026

Digital gold purchases via UPI recorded significant growth in March 2026, with transactions escalating to an all-time high of 254.44 million and a total value of Rs 3,171.96 crore, as per data from NPCI. Although this value represents a decrease from the January peak of Rs 3,926.47 crore, it surpasses February’s value of Rs 3,032.41 crore. Transaction volumes increased notably from 222.83 million in February to a new record in March.

UPI’s Dominance in Digital Gold Transactions

UPI has established itself as the leading platform for digital gold purchases in India, with over 90% of these transactions occurring through the payment network. The landscape has expanded across various payment and fintech platforms, with digital gold sales flourishing on Paytm, PhonePe, Jar, Amazon Pay, Google Pay, and several other UPI-enabled services. Users are increasingly opting for small-ticket purchases through these applications.

Shifting Consumer Patterns

The data reflect a transformation in consumer behaviour, as users move away from large, one-time festive purchases towards smaller, more frequent transactions. The segment experienced fluctuations toward the end of 2025, with purchases amounting to Rs 2,290 crore in October during the festive period, before dropping to Rs 1,215 crore in November despite a rise in volumes. However, the segment rebounded to Rs 2,079 crore in December and peaked again in January.

Regulatory Considerations for Digital Gold

On the regulatory side, the Securities and Exchange Board of India announced in November that digital gold products do not fall under its jurisdiction. Consequently, this leaves the segment without a dedicated regulatory body, even as transaction volumes continue to rise. A formal notification or circular to address this regulatory gap has not yet been established, while the buying trend persists unabated.

Top UPI Spending Categories in March

In March, UPI transactions were primarily driven by consumption-centric sectors. Groceries and supermarkets led the way, recording 3,751 million transactions worth Rs 81,879 crore. Fast food outlets accounted for 1,474 million transactions valued at Rs 17,237 crore, and restaurants experienced 1,250 million transactions, amounting to Rs 20,784 crore. Fuel purchases were significant at Rs 44,180 crore, while telecom services contributed Rs 23,723 crore. Additionally, sectors like utilities, pharmacies, online marketplaces, apparel, electronics, and entertainment demonstrated consistent traction.