On last “Akshya Tritia”, Paytm launched a platform in partnership with MMTC-PAMP where you can buy and sell “24 karat” gold digitally.
You might think you are buying this digital gold from Paytm. But the truth is the seller of this digital gold is MMTC-PAMP India whereas Paytm is just acting as a mediator between you and the MMTC-PAMP. It is a joint venture between MMTC Limited, a Govt. of India undertaking and PAMP Switzerland, global leader in refining bullion and global referee for precious metals. It is India’s first and only London Bullion Market Association (LBMA) good delivery accredited gold and silver refinery.
As per Paytm Digital Gold FAQ, “9999 gold is the purest form of Gold used for trading purposes across the world. 24 karat gold is of 99.9% purity, while the gold purchased through GAP is at least 99.99% pure.”
You can make an offer to buy Gold at the “live rate” displayed in the Paytm platform in either Rupees or Grams. The platform can be accessed either using Paytm Mobile Application or through their website. According to the Paytm website, ‘Live rate of Gold means the Gold rate in INR per gram of 9999 fine Gold, as posted from time to time, inclusive of duty, exclusive of taxes, product manufacturing/making charges, delivery charges etc”. The live price is updated frequently.
The best part is that the Gold Accumulation Plan (GAP) allows you to purchase gold using their Paytm account for as low as Re 1. Gold can be bought & sold in fractions, for example 0.1 gm or in Rupees, for example Re. 1 or Re. 2 etc.
The accumulated gold will be stored by MMTC-PAMP in their vault for a period of 5 years from the date of purchase without any additional charges. Once this duration is complete, it is mandatory to sell or take delivery of the respective quantity.
MMTC-PAMP will buy the gold from you in case you want to sell at a price that is displayed on the platform. The money will be directly credited your bank account. Of course, you will have to bear a convenience fee, and then you will immediately see the amount credited in your bank account while the gold balance in your gold account will be debited. You can also redeem all or part of their accumulated gold by getting it delivered physically, in the form of gold coins/ minted products, after payment of making and delivery charges. You are not allowed to buy and redeem gold on the same day.
You will need to submit your name, registered mobile number and pin code at the time of initiating the purchase of Gold. But in case the cumulative transaction value in the GAP account crosses ₹50,000, you will be required to adhere to the prevailing KYC norms.
Vijay Shekhar Sharma, Founder & CEO – Paytm said in a press release, “Gold is the preferred form of investment for Indians, and we are making it easier for our users to invest in gold digitally. With this product, our customers can buy and sell international quality gold at market-linked prices instantly. The goal is to offer complete flexibility in deciding the amount they want to invest, and enable consumers to develop habit of saving regularly in digital gold for long-term wealth creation. We are confident that this solution will help millions of Indians to buy and sell 24K 99.99 percent pure gold with utmost confidence and security.”
Paytm has sold over 30kgs of ‘digital gold’ within 6 days of its launching the service in partnership with gold refiner MMPT-PMPC. India is the world’s largest consumer of gold. As per World Gold Council, an estimated 24,000 tonnes worth USD 900 billion of gold is stocked in homes and bank lockers in India.