UPI digital gold purchases jump on Dhanteras; online marketplace transactions drop
Indians purchased digital gold worth Rs 229.04 crore using UPI in October, a striking 62.4% jump from Rs 141.02 crore a year earlier amid heavy Dhanteras spending.
India’s festive-season buying pushed UPI spending on digital gold up 62.4% to Rs 229.04 crore in October 2025, as Dhanteras demand surged even while UPI transactions on online marketplaces fell 16.9% from the previous quarter.
According to data from the National Payments Corporation of India (NPCI), Indians purchased digital gold worth Rs 229.04 crore using UPI in October, a striking 62.4% jump from Rs 141.02 crore a year earlier amid heavy Dhanteras spending.
People traditionally buy gold on Dhanteras as it is believed to invite prosperity and good fortune into the home, making the metal one of the most culturally ingrained purchases during the Diwali period.
The rise came as gold prices rallied sharply from Rs 1.12 lakh per 10 grams in mid-September to nearly Rs 1.35 lakh ahead of Dhanteras, a Rs 23,000 jump in barely a month.
That frenzy came even as the Securities and Exchange Board of India (SEBI) urged investors to stay away from such products. SEBI warned that “digital” or “e-gold” sits outside its regulatory purview, isn’t classified as a security or commodity derivative, and carries “significant risks.”
The caution follows aggressive pushes by platforms, including PhonePe and Paytm, as well as newer startups like Gullak and Jar, which have been expanding or vertically integrating gold offerings to capture more market.
The rush for gold was part of broader festive-season spending patterns. Electronics purchases through UPI climbed to Rs 1,217.59 crore in October, up 27% from the previous month, as smartphone makers and appliance brands rolled out Diwali promotions.
Not everything moved in one direction. Online marketplaces logged a 16.9% quarter-over-quarter drop in UPI-based transactions to Rs 835.03 crore, although the category is still growing year-over-year, up 27.2% from October 2024, NPCI data showed.
The softer short-term numbers could be chalked up to front-loaded festive sales and consumers shifting discretionary budgets toward gold and big-ticket electronics.
Investors, meanwhile, stayed active. UPI transactions in broking and dealing rose 33.6% quarter-over-quarter to Rs 6,609.55 crore, helped by the annual tradition of Muhurat trading during Diwali.
But annually, activity remains subdued: securities-related UPI flows slipped 16.3% from the levels seen a year earlier, reflecting a broader slowdown in retail market participation.
UPI cemented its status as the country’s go-to payment method this festive season, underscoring robust consumer spending and a clear rebound in demand, Bank of Baroda said in a report.
The lender noted that UPI transaction value jumped to Rs 17.8 lakh crore during the festive period, up from Rs 15.1 lakh crore a year earlier.
Edited by Suman Singh