India’s Digital Gold Industry Forms DPMACI To Strengthen Transparency And Consumer Protection

Mumbai, May 11: India’s digital precious metals industry has come together to establish the Digital Precious Metals Assurance Council of India (DPMACI), a self-regulatory organisation aimed at strengthening transparency, operational integrity and consumer protection in the rapidly expanding digital gold and silver market.

The newly formed body seeks to institutionalise governance standards and build consumer confidence by introducing uniform operational practices and verification mechanisms across the sector. Public policy expert Nirupama Soundararajan has been appointed Independent Chairperson of the council.

Industry players form self-regulatory council

The DPMACI has been formed by leading players in the digital precious metals ecosystem, including MMTC-PAMP, SafeGold, Augmont, PhonePe, BharatPe, Mobikwik, Gullak, Lenden Club and CRED.

According to the council, all member entities will be required to comply with a strict code of conduct and operational standards. A key feature of the framework is the assurance of a 1:1 physical metal backing for customer holdings.

These reserves will be verified through periodic independent audits, while all precious metal assets must conform to recognised London, UAE and Indian good delivery standards.

Council plans ombudsman and audit framework

The council also plans to establish an Ombudsman framework to ensure timely resolution of customer complaints and disputes.

Independent audit firms will conduct rigorous verification checks to ensure customer balances accurately match physical holdings.

Under the proposed safeguards, all assets will be stored with independent custodians or vault operators, while detailed standards will govern vaulting, insurance, storage and disclosures.

Customer funds will also be maintained through segregated accounts overseen by an independent trustee to safeguard investor interests, including in cases of insolvency involving intermediaries.

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DPMACI launches official portal

An official DPMACI portal has also been launched to provide information on governance practices, compliance standards and grievance redressal procedures.

Speaking on the initiative, Soundararajan said the formation of the council marked a “pivotal step” for the industry by creating a transparent and accountable ecosystem focused on consumer trust and sustainable growth.

She added that the organisation aimed to work closely with policymakers to ensure best practices become an industry benchmark as India’s digital metal market continues to expand rapidly.

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