Key Features of Paytm Digital Gold –

• A person can use his/her Paytm mobile wallet and buy 24K 999.9 purity gold online for any value above Re. 1 or 0.1 gms. The price will be displayed on the website/app and you can buy from there.
• When the gold is purchased, it will be stored against the person’s account in MMTC—PAMP’s secure vaults. There will be no charge for storage.
• The purchase can also be converted to delivery. But this can be done only for purchase above a certain limit. It also involves some charges related to making and delivery.
• If the purchase is above Rs. 20,000, the person has to submit KYC documents. If the purchase is above Rs. 50,000 the person has to submit PAN requirements.
• It is an investment plan but you do not earn any interest/returns on it. The returns are the profits made in the difference of buying and selling price.
• People who are residents in India can only use this account.
• The maximum time the gold is kept in safe custody of MMTC-PAMP is 5 years.
• In case of the owner’s death, the legal heir will have to take a physical delivery of the balance in the account. He has to inform about it to Paytm/MMTC-PAMP.

• It is a wealth management product. It will allow people to invest in gold for any amount they wish to have. They can accumulate gold. People have the opportunity to buy gold at smaller ticket prices.
• It is easily convertible. One can convert purchases to real gold and the balance in the account can be converted to cash by selling it without getting any physical delivery. The amount will be credited to your bank account. There is no need to worry about theft, storage and purity issues.
• A person can purchase 24 hours, 365 days irrespective of bank holidays or public holidays.
• The vault is insured and your money will be returned to you in case of loss due to theft or natural disasters.

Disadvantages of Paytm Digital Gold

• If you do not make a transaction (buy, sell, redeem) for 6 continuous months, the account will be treated as inactive. The gold will be sold at the price on the day of liquidation. It will be kept in a separate Gold Accumulation Plan (GAP) account. You can claim the money with relevant documentation. But this means you have to actively be involved in buying/selling/redeeming. It means you have to keep a close watch on the price and invest time and effort in transactions and ensure your wealth grows appropriately.
• You have to pay a convenience fee for selling gold that is technically yours.

It is a good product to invest in gold. It brings diversification in the portfolio. It allows flexibility and liquidity. It also offers ease of transaction. At the same time, you have to keep the account active by performing regular transactions. This may not suit everyone’s requirements. ​