India’s government is discussing possible new rules for digital gold, including physical-bullion backing and joint oversight by the Reserve Bank of India and the Securities and Exchange Board of India.

The important qualification is that no final framework has been announced.

The Economic Times reported on 18 September 2026 that the finance ministry had sought views from regulators, banks and other stakeholders. The report, citing people familiar with the discussions, said there was broad support for bringing digital gold under regulatory supervision.

That is a report about consultations and options under consideration. It is not an official notification, enacted rule or confirmation that RBI and SEBI already regulate these products.

What is being discussed

One proposal would require every digital unit sold to a customer to be backed by an equivalent quantity of physical bullion.

Another would place digital gold under joint RBI and SEBI oversight. The Economic Times reported that stakeholders had discussed recognising digital gold as a security under the Securities Contracts (Regulation) Act, 1956.

Neither proposal should be described as current law. The verified reporting does not establish a final design, implementation date or completed regulatory decision.

The discussion matters because digital gold currently sits outside the securities-market framework that applies to several other gold-related products.

What SEBI currently says about digital gold

In an official caution issued on 8 November 2025, SEBI said digital gold and e-gold products offered through online platforms were different from SEBI-regulated gold products.

The regulator said these products were neither notified as securities nor regulated as commodity derivatives. It added that they operated outside SEBI’s purview.

SEBI warned that digital gold could expose buyers to counterparty and operational risks. It also said the investor-protection mechanisms available within the securities market would not apply to these products.

This is a statement about regulatory status and risk. It does not establish that every digital-gold provider is fraudulent, but it does mean buyers do not receive the same securities-market protections simply because a product is sold through a familiar app or online platform.

Regulated gold products are a separate category

SEBI’s caution identified three gold-related routes that operate within its framework:

  • exchange-traded commodity derivative contracts;
  • gold exchange-traded funds offered by mutual funds; and
  • Electronic Gold Receipts traded on stock exchanges.

These products can be accessed through SEBI-registered intermediaries and are governed by SEBI’s regulatory framework.

That distinction should not be turned into a recommendation. The regulator listed the products to explain the boundary between regulated gold instruments and digital gold, not to give personal investment advice.

What has not changed

The reported discussions do not remove the regulatory gap described by SEBI.

Based on the verified record available on 21 September 2026:

  • digital gold has not been shown to be newly notified as a security;
  • joint RBI and SEBI oversight has not been shown to be final;
  • mandatory physical backing has not been shown to be in force; and
  • securities-market investor protections should not be described as applying to digital gold.

The phrase “may come under oversight” is therefore central to the story. Replacing it with “will be regulated” would turn a reported proposal into a settled decision.

What to watch next

The next meaningful development would be an official government, RBI or SEBI document setting out a proposed or final framework.

Until then, the November 2025 SEBI caution remains the clearest verified official statement in this source record. The September 2026 reporting shows that policymakers are considering change, but discussion is not regulation.

This article explains the reported policy discussion and current regulatory distinction. It is not personal investment advice or a recommendation to buy or sell any gold product.

Sources