New Delhi, May 31: Allowing customers to buy and sell gold through an electronic platform, Alibaba-backed Paytm launched the ‘Digital Gold’ service in April. The new service enables customers to buy 24K 999.9 pure gold online. For this, Paytm has partnered with India’s only internationally-accredited refinery MMTC PAMP to launch digital gold on its platform. The Digital Gold platform allows is MMTC PAMP’s most secure with 100% insured vaults at no additional charge. A customer using Paytm can see the live price of gold and can also request this gold to be delivered to their homes in the form of minted coins or sell it back online to MMTC PAMP.
According to the Paytm website, ‘Live rate of Gold means the Gold rate in Indian rupees 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. Questions on security and storage charges of the precious metal have come up and Paytm has given an answer to all of those questions. Here’ what will happen to your Digital Gold.
How can an individual buy Digital Gold on Paytm?
- An individual can buy Gold at the rate displayed on the Paytm in either Rupees or grams.
- For example, you can buy gold worth Re 1 and above or 0,1 gram and above
- ‘Digital Gold’ service enables customers to buy 24K 999.9 pure gold online
What is 9999 fine Gold?
- 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 you buy through GAP is at least 99.99% pure.
How do I know that I have successfully placed my order?
- An individual will invoice for his/her order.
- To download the invoice for a successful order, visit the order page under ‘My Orders’ section on Paytm Web or App and click on ’invoice’.
- Invoice is also sent as an attachment in the order confirmation email.
What tax implications do I have, if I accumulate Gold on Paytm?
- At the time of purchasing, selling and redeeming Gold, all applicable taxes are included in your invoice.
- These taxes are over and above the displayed price of the gold.
Are my Gold account details shared with any tax authorities?
- Also, none of the customer’s details is shared with any tax authorities.
- In case of any enquiries by government authorities, Paytm will have to provide the requested information.
What is Gold accumulation plan (GAP)?
- The GAP allows you to purchase gold using your Paytm account for as low as Re.1/-
- You can buy & sell in fractions for example. 0.1 gm or in Rupees, for example Re.1 or Re. 2 etc
- You may purchase gold 24 hours a day, 7 days a week, 365 days a year, including public and bank holidays
I want to sell the Digital Gold. How do I sell the Gold I have accumulated?
- If a customer wants to sell the gold that he has purchased, he/ she can offer to sell the Gold accumulated on Paytm in either Rupees or Gram. For example, you can offer to sell either 0.1 gram or Re 1 and above
- The customer’s Gold account holdings should be equal to or higher than the quantity you offer to sell. For this, the customer will be required to share your Bank account number and IFSC code to enable the sell transaction.
- After paying the convenience fee, you will immediately see the amount credited in your bank account while the Gold balance in your Gold account will be debited.
- In the rare event of any technical failure, MMTC-PAMP may reject your offer to sell. The quantity offered by you to sell will be credited as per the Paytm norms in your Gold account.
I wish to withdraw my gold. How do I do that?
- If a customer wishes to withdraw the gold that he has purchased, he can request for all or part of your gold holding, between 1 gm and multiples thereof.
- The customer can select the quantity and denomination of the gold you wish to withdraw from the available options of coins on the Paytm platform
- Each coin will have different making charges, based on the weight and design of the coin. The customer must confirm the transaction by paying the additional making and delivery charge.
- The gold product will be delivered at your notified address by a logistics provider arranged by Paytm, and you will receive a confirmation on your Paytm registered mobile number. You can track the delivery by logging on to your account from time to time.
Can I visit the vault to inspect my Gold physically?
- No, an individual cannot visit the vault to inspect his/her Gold physically.
- However, a customer can view recordings of our facility.
The best part that has lured users in India is that an individual can invest as low as Re 1 to buy gold. The purchased gold will store on your behalf in MMTC-PAMP’s secure vaults, that too without any charges. You can buy and store your gold for a period of 5 years from the date of purchase with them. And sell/withdraw your gold anytime within these five years. Once this duration is complete, it is mandatory to sell or take delivery of the respective quantity. If you redeem your gold after the custody period of five years, they will charge you additional charges, applicable at that time.
Earlier in May 2017, a week after its launch, Paytm claimed that it has sold over 30 kgs of ‘digital gold’ in six days of launching the Digital Gold service as it allowed people to buy gold for as low as a Re. Paytm Senior Vice President Krishna Hegde said was quoted by PTI saying, “A good number of Paytm users are now testing the product to understand if they can really buy Rs 1 worth of digital gold. After the initial success, they try to buy for Rs 11. It is interesting”.
India is the world’s largest consumer of gold. As per World Gold Council estimates, Indians currently hold more than 24,000 tonnes of gold worth $ 900 Billion. Digital Gold in partnership with MMTC and Switzerland’s PAMP, has triggered people’s interest. An individual can buy up to a maximum of 1.50 lakh per transaction while there is no limit on the number of transactions. Paytm’s Digital Gold is has received high traction from tier-2 and tier-3 cities as consumers better access to high-quality gold at small ticket prices.