Paytm has announced that it will soon restart physical gold delivery for users who invest in digital gold on its platform. The company told Moneycontrol that this service will resume before the festival of Akshaya Tritiya.
Many payment and investment apps allow customers to invest in digital gold. On these platforms, users can either sell their gold anytime or request physical delivery of the gold they own.
Paytm to Restart Physical Gold Redemption
In a statement to Moneycontrol, Paytm said it is upgrading its digital gold service to offer better redemption options.
The company explained that after the upgrade, physical redemption and delivery of digital gold will be available in more than 12,000 PIN codes across India.
The feature is expected to roll out from mid-April, once backend product and technology improvements are completed.
Redemption Was Suspended in August 2025
Some Paytm gold investors reported that the company temporarily stopped physical redemption of digital gold in August 2025 without giving a clear explanation at that time.
In the app, the physical delivery option has been displayed as “Coming Soon.”
According to Paytm, the temporary pause was necessary to improve infrastructure and logistics, ensuring a smooth and consistent experience for customers across the country.
The company also clarified that customers could always sell their digital gold at the current market price, even while the physical redemption option was suspended.
Digital Gold Is Becoming More Popular
Interest in digital gold has been rising rapidly. In January 2026, purchases of digital gold through Unified Payments Interface (UPI) reached record levels.
Digital gold worth ₹3,926 crore was purchased.
Around 219 million transactions were recorded.
This was four times higher than January 2025.
More than 90% of purchases were made through UPI.
Several factors are driving this growth, including rising gold prices, gold’s reputation as a safe investment, the ease of buying online,
and the ability to invest small amounts at a time. Customers can buy digital gold starting from ₹1 up to about ₹2 lakh per day.
Apps That Offer Digital Gold
Many payment apps allow users to buy digital gold, including Paytm, PhonePe, Jar, Amazon Pay, Google Pay, and Tanishq.
The value of digital gold is tokenized by companies such as MMTC-PAMP and SafeGold. Paytm’s partner is MMTC-PAMP, which is partly owned by the Government of India.
Whenever a customer buys digital gold, the app purchases an equivalent amount of physical gold and stores it securely in a vault with MMTC-PAMP or SafeGold.
Independent auditors regularly verify this process to ensure that the same amount of physical gold is actually held in storage.
Physical Delivery Rules
Most platforms require users to hold a minimum quantity of digital gold before they can request physical delivery. This limit usually starts from one gram, though it may vary by platform.
For example, PhonePe has partnered with CaratLane to provide physical delivery of digital gold to its customers.
