According to some Paytm gold investors, the company temporarily suspended physical redemption of digital gold starting in August last year. The company stated that the suspension was temporary to improve infrastructure and logistics.
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Paytm will resume physical gold deliveries to its digital gold investors. The company told Moneycontrol that this will happen before Akshaya Tritiya. Most payment and investment apps offer digital gold investors the option on their platforms. Customers can sell their gold at any time or receive physical delivery of the gold.
In a statement to Moneycontrol, Paytm said, “We are making changes to enhance the digital gold experience and provide more robust redemption options. As part of this upgrade, physical redemption and delivery of digital gold on Paytm will be available in over 12,000 pin codes. This feature will resume from mid-April, once we complete the backend product and technology improvements.”
Redemption was halted in August 2025.
According to some Paytm gold investors, the company temporarily suspended the physical redemption of digital gold in August last year, without providing any reason. The physical gold redemption option is currently displayed as “Coming Soon” on the app. The company stated that this temporary suspension was necessary to improve infrastructure and logistics to provide a consistent customer experience across the country. Paytm also stated that the option to sell gold at the prevailing market price has always been available to customers.
The Growing Luminance of Digital Gold
In January 2026, digital gold purchases through UPI surged to record levels. A total of ₹3,926 crore worth of digital gold was purchased, with 219 million transactions taking place. This figure is four times higher than in January 2025. More than 90 percent of digital gold was purchased through UPI. The increasing interest in digital gold is due to factors such as rising gold prices, gold’s role as a safe investment asset, ease of purchase, and the convenience of investing in small amounts. Customers can purchase digital gold ranging from ₹1 to approximately ₹2 lakh per day.
Payment apps like Paytm, PhonePe, Jar, Amazon Pay, Google Pay, and Tanishq offer digital gold purchases. The gold token is tokenized by companies like MMTC-PAMP or SafeGold. Paytm’s partner is MMTC-PAMP, a company owned by the Government of India. Whenever a customer purchases digital gold, these apps purchase the same amount of physical gold and store it in a secure vault with MMTC or SafeGold. This process is audited by an independent auditor to ensure that these apps are purchasing the appropriate amount of physical gold.
Redemption in Physical Form
Most platforms have a minimum quantity limit for receiving physical delivery of digital gold. This limit varies from platform to platform, but is often one gram or more. PhonePe has partnered with CaratLane for physical redemption of digital gold.
