In a significant move to address regulatory concerns surrounding digital gold investments, domestic broking firm Dhan has introduced 'Gold Vault,' a new product enabling retail investors to purchase gold and silver through its mobile application. This initiative aims to provide a secure and regulated pathway for digital precious metal acquisition, distinct from previous unregulated offerings.
Addressing Regulatory Gaps in Digital Gold
The market for digital gold in India has seen substantial growth, with UPI-based purchases exceeding Rs 3,000 crore in February 2026 alone. However, this segment has largely operated outside the direct supervision of financial regulators like the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI). SEBI had previously issued warnings in November 2025, highlighting the inherent risks in unregulated digital gold products compared to its own regulated alternatives.
Dhan's 'Gold Vault' seeks to fill this regulatory void by operating entirely within SEBI's capital markets framework. According to the company, this ensures compliance and offers investors a more trustworthy method to acquire physical gold and silver assets.
How Dhan's Gold Vault Works
Through the Gold Vault product, any registered Dhan user can buy gold or silver futures contracts at live exchange rates provided by the Multi-Commodity Exchange (MCX). The transactions involve no hidden markups or spreads on the price. Once the commodity contracts are physically settled, the gold or silver is delivered and stored in exchange-regulated and MCX-partnered vaults. These institutional-grade facilities, previously accessible primarily to large financial players, are now available to retail investors.
Investors can request physical delivery of their gold or silver at any time, with doorstep delivery available across approximately 457 towns nationwide. Jay Prakash Gupta, founder and COO of Dhan, emphasized that by routing every purchase through actual MCX futures settlement and clearing, the product eliminates structural risks that have affected other digital gold offerings in India.
Costs and Investment Details
While offering enhanced security, Gold Vault does involve certain charges. Dhan levies a transaction fee of Rs 20 per trade, irrespective of the quantity. Additionally, investors will incur Goods and Services Tax (GST) on transactions and annual storage fees, estimated at around Rs 50 per gram per year. Logistics partners will also charge handling and delivery fees for physical asset requests.
Despite these costs, Dhan officials suggest that the total expense for users will be 3-4 percent lower than purchasing gold through conventional legitimate channels. Investors should note that Gold Vault does not support fractional gold purchases; instead, it requires buying in standard MCX lot sizes, such as Gold Mini (100 grams), Gold Guinea (8 grams), or Gold Petal (1 gram).
A New Era for Gold Investment
Praveena Rai, MD and CEO of MCX, highlighted that this product leverages existing MCX infrastructure for physical gold settlements, making it the first time a broker has designed such an offering specifically for individual retail investors. This integration of exchange-led liquidity, transparent pricing, secure vaulting, and seamless delivery aims to instill greater confidence in investors looking to add gold to their portfolios digitally.
Currently, Gold Vault is exclusive to Dhan users. However, given the existing commodity trading capabilities on other brokerage platforms via MCX, the success of this product could pave the way for similar regulated digital gold offerings across the industry.