The traditional practice of purchasing physical gold during festivals like Diwali, Dhanteras, and Akshaya Tritiya is transforming India, with an increasing number of people opting for digital gold. Digital gold offers a safe and convenient alternative to acquiring and saving gold. Unlike physical gold, it can be bought and sold online with ease. However, not everyone is eligible to buy digital gold in India. In this article, we will explore the eligibility criteria and the process of purchasing digital gold while also highlighting who is not eligible to do so.
Understanding Digital Gold
Digital gold, as the name suggests, allows individuals to buy and save gold online. Each online transaction corresponds to an equivalent weight of real gold, which is securely stored in a vault by the seller. This digital gold can be acquired gradually, over multiple transactions, and in various denominations, making it a flexible and accessible investment option.
Who Can Buy Digital Gold?
In India, individuals who are residents can buy digital gold. According to Axis Bank’s guidelines, the individual should have either a savings account or a current account to be eligible for purchasing digital gold. This requirement ensures that the buyer has a financial account within the country.
Who Cannot Buy Digital Gold in India?
There are two main categories of individuals who are not eligible to buy digital gold in India:
- Minor Account Holders: Minors, individuals below the age of 18, are not allowed to purchase digital gold. This is because they do not possess the legal capacity to enter into financial transactions independently.
- NRI Customers Without NRO Account: Non-Resident Indians (NRIs) who do not hold an NRO (Non-Resident Ordinary) account are also ineligible to buy digital gold in India. The NRO account is essential for NRIs to manage their income earned in India and make investments.
How to Buy Digital Gold on Google Pay?
For those who are eligible to buy digital gold in India, platforms like Google Pay provide a user-friendly process for making these investments. Here’s a step-by-step guide on how to buy digital gold on Google Pay:
Step 1: Open Google Pay and use the search bar to look for “Gold Locker.”
Step 2: Select “Gold Locker” from the search results.
Step 3: Click on the “Buy” option. The current market buying price of gold, including taxes, will be displayed. This price remains locked for five minutes after you initiate the purchase.
Step 4: Enter the amount of gold you wish to buy in Indian Rupees (INR).
Step 5: Choose your preferred payment method in the pop-up window and click “Proceed to Pay.”
Once the transaction is confirmed, the purchased gold will appear in your digital locker within a few minutes. It’s important to note that once an order has been processed, it cannot be cancelled, but you can sell it back at the current market price if needed.
Additional Information
Here are some important things to keep in mind when buying digital gold in India:
- Taxation: The taxes on digital gold may vary depending on your location and postal code. It’s advisable to be aware of the tax implications before making a purchase.
- Purchase Limit: While there is no upper limit on the total amount of digital gold you can buy, there is a daily cap of Rs 50,000 that you can spend in a single day.
- KYC Regulations: Accounts with a total purchase exceeding Rs 49,999 need to adhere to Know Your Customer (KYC) regulations before making further purchases, ensuring transparency and compliance with financial regulations.
Conclusion
Digital gold is becoming an increasingly popular investment option in India due to its convenience and security. However, not everyone is eligible to buy digital gold. Individuals who are residents of India with a savings or current account are eligible, while minors and NRI customers without NRO accounts are not eligible. Understanding these eligibility criteria and the buying process is crucial for making informed investment decisions in the digital gold market.
