Digital Precious Metals Assurance Council of India Enhances Transparency

Digital Precious Metals Assurance Council of India (DPMACI) has been established to promote transparency, operational integrity, and consumer safety in the market for digital gold and silver. This initiative is timely as the popularity of digital precious metals grows rapidly across India.

Formation of DPMACI

The council includes prominent industry players such as MMTC-PAMP, SafeGold, Augmont, PhonePe, BharatPe, MobiKwik, Gullak, LendenClub, and CRED. This collective aims to bolster the digital gold sector, which has seen significant growth through UPI-based platforms.

Growth in Digital Gold Transactions

Current estimates indicate that over 90% of transactions involving digital gold now occur via the UPI network. Users are increasingly favouring smaller purchases facilitated by fintech and payments applications. The category has expanded with familiar platforms like Paytm, PhonePe, Indiagold, Jar, Amazon Pay, and Google Pay.

Governance and Standards

Nirupama Soundararajan, a public policy expert, will chair the self-regulatory body. DPMACI will collaborate with policymakers and government officials to set governance standards and verification processes for the sector. Member platforms will be obligated to ensure 1:1 backing of physical metals, which will be verified through periodic independent audits. Additionally, these holdings must meet London, UAE, or Indian good delivery standards.

Protection of Customer Assets

The safety of customer assets will be ensured through independent custodians, segregated accounts, trustees, and insured vaulting systems. Furthermore, the council is set to introduce an Ombudsman framework aimed at efficiently resolving grievances and customer complaints within stipulated timelines.

Official Portal and Transparency Initiatives

An official portal has already been launched, outlining governance standards and compliance processes for member platforms. The formation of DPMACI represents a significant advancement for the industry. By proactively establishing a unified framework of transparency and rigorous standards, the council aims to foster sustainable growth while prioritising consumer trust.