UPI Driven Digital Gold Crosses 254 Million Transactions In March As Buying Habits Shift Across India

Why this shift matters

The data signals a deeper behavioural change in how Indians buy gold.

Instead of relying on festive season purchases or large lump sum investments, users are increasingly making smaller and more frequent purchases through digital platforms.

This reflects how traditional assets are being reshaped by mobile first payment infrastructure.

UPI becomes the dominant channel for digital gold

UPI now accounts for more than 90 percent of digital gold transactions across India.

Fintech platforms such as Paytm, PhonePe, Google Pay, Amazon Pay, Jar, and Indiagold are making gold accumulation accessible through micro transactions that fit into daily spending behaviour.

Volatility in late 2025 but strong recovery in 2026

Digital gold purchases showed fluctuations during the final months of 2025.

Transaction value reached Rs 2,290 crore in October before declining to Rs 1,215 crore in November despite higher transaction volumes. The segment then recovered to Rs 2,079 crore in December and peaked in January before stabilising in the following months.

Regulatory clarity still pending

Despite rapid adoption, digital gold continues to operate without a dedicated regulatory framework.

The Securities and Exchange Board of India indicated in November that digital gold products fall outside its regulatory scope. A formal notification is still awaited even as transaction volumes continue to rise.

UPI spending patterns beyond digital gold

Across categories, groceries and supermarkets led UPI spending in March with 3,751 million transactions worth Rs 81,879 crore.

Fast food outlets recorded 1,474 million transactions, while restaurants followed with 1,250 million transactions. Fuel purchases reached Rs 44,180 crore and telecom services contributed Rs 23,723 crore.

Utilities, pharmacies, online marketplaces, apparel, electronics, and entertainment also maintained steady usage across the network.