Digital Precious Metals Industry Launches Self-Regulatory Body to Boost Consumer Confidence

India's digital precious metals industry has taken a significant step toward self-governance by establishing the Digital Precious Metals Assurance Council of India (DPMACI). This self-regulatory organization aims to embed transparency, operational integrity, and consumer safeguards throughout the sector.

Spearheading the initiative as Independent Chairperson is Nirupama Soundararajan, a veteran of public policy. The DPMACI will implement stringent governance standards while engaging with government and policy officials to foster a transparent, accountable, and consumer-centric marketplace. The organization seeks to maintain consumer confidence while enabling technology-driven expansion within the industry.

The council brings together major digital gold and silver platforms under a unified code of conduct. Founding members include MMTC-PAMP, SafeGold, Augmont, PhonePe, BharatPe, Mobikwik, Gullak, Lenden Club, and CRED. Through coordinated standards and verification mechanisms, the organization intends to proactively address consumer concerns and strengthen market credibility.

The DPMACI framework mandates that all physical metal holdings maintain a 1:1 backing with customer balances, verified through regular audits. All precious metals must conform to London, UAE, and Indian good delivery standards. Independent custodians and vaults will secure all assets, with clear protocols established for storage, vaulting, insurance, and disclosure practices.

To ensure rigorous oversight, independent audit firms will conduct periodic inspections verifying that physical metal inventories precisely correspond to customer account balances. Customer funds will flow through segregated accounts supervised by an independent trustee, protecting investor assets in scenarios where intermediaries face insolvency.

The framework also includes an Ombudsman structure designed to handle customer grievances and facilitate resolution within predetermined timeframes. A dedicated online portal now provides access to governance standards and the formal complaint mechanism.

Speaking about the establishment of the council, Soundararajan stated: "The formation of DPMACI represents a crucial milestone for this industry. By establishing a shared framework rooted in transparency and stringent standards, we are creating the conditions for sustainable development that places consumer trust at the centre. The institutionalization of practices such as independent audits and clear custodial protections benefits the entire sector, strengthening consumer protection and market integrity. DPMACI is dedicated to collaborating constructively with policymakers so that these best practices become the standard across the ecosystem and contribute to a transparent, robust digital economy."

The initiative positions India's expanding digital metals market in alignment with international benchmarks, replacing uncertainty with certified standards and consistent compliance oversight.