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Digital Gold FAQ's

 
About Gold:
 
What is SafeGold?
 
SafeGold is an organised and transparent method of buying 24 carat gold in
compliance with all applicable laws and regulations. SafeGold is neither a
financial product nor a deposit but a method of purchasing gold for your
personal needs. You can buy the gold under this plan according to your wish and
have complete freedom to seek physical delivery of gold anytime and on as many
occasions as you want.
Since it is not physically possible to deliver a fractional
quantity of gold, minimum quantity for which the delivery is proposed to be
made has been kept as low as 1 gram and in multiples of 1 gram. Gold will be
purchased on your behalf on the basis of clear funds being made available by you
for the transaction. Gold in grams up to 4 decimal places shall be credited to
your account.
 
Who is Digital Gold India Private Limited?
 
Digital Gold India Private Limited is institutionally owned by InVent Capital with
the World Gold Council as a minority investor (through World Gold Council
(India) Private Limited). SafeGold is a product of Digital Gold India Private
Limited.
 
What is the Purity of Gold offered by SafeGold?
 
Safegold offers 24 Karat Gold of 995 fineness (99.5% pure).
 
What is the role of the “Security Trustee”?
 
SafeGold has entered into a relationship with IDBI Trusteeship Services Limited
to act as a Security Trustee for all our customers. The Security Trustee is
entitled to act on your behalf and ensure that your interests are protected. The
Security Trustee will have a charge on the gold associated with accumulations
held by you.
 
What will happen to the gold associated with accumulations in my
account, in the unlikely event of the SafeGold going into liquidation?
 
The gold associated with the accumulations in your account is separate from the
other assets of the SafeGold. IDBI Trusteeship Services Limited, an independent
trustee, acts for and on your behalf. The gold purchased by the Company
associated with the accumulations in your accounts is held with the Custodian.
When you ask for delivery, the requisite quantity of gold will be removed from
the Custodian and delivered to you through a reputed courier service. Since the 
Security Trustee has a charge over the gold, any unlikely adverse event
happening to Company will not affect the gold associated with the accumulations
in your account. Further, the title of the gold clearly rests with you and the
physical gold stored with the Custodian on account of SafeGold customers is not
an asset of SafeGold in any way.
 
What are the various tenures available under SafeGold?
 
You are not obligated to make any fixed or periodic payments.
 
Who will insure the physical vault?
 
The secure storage provider (Brink's) has a comprehensive, global insurance
policy that includes the insurance cover on your gold stored in their vaults. In
addition, SafeGold has an additional insurance policy to cover gold in transit.
 
Purchase & Storage
 
What is the eligibility/criteria to purchase SafeGold?
 
Any Indian resident can enrol for SafeGold.
 
What is the minimum & maximum amount for this plan?
 
The minimum amount of purchase is Re. 1.
 
How do I sell my gold?
 
Digital Gold India Private Limited (the "Company") provides a sell price quote on
the platform app. You can choose to sell any amount starting with a minimum of
Re. 1 to a maximum of the amount of gold that you own. The sell quote may be
temporarily unavailable in the unlikely event of a disruption in the bullion
market.
 
At what price is gold sold/ bought from customers?
 
SafeGold will publish a live buy-sell quote for you which will be derived from the
wholesale bullion market plus a commission to cover operating costs. The actual
purchase price paid by you will always be transparently published so that you
have a chance to compare with all other sources before entering into a
transaction.
 
Where can I find the invoice for each order?
 
If your email address has been provided, an invoice shall be emailed to you as an
attachment after each successful transaction. It is also available on the platform,
by clicking on the invoice button.
 
How can I get my holding statement?
 
An online statement will be available at all times on the platform.
 
Is the gold associated with my accumulations kept in safe custody?
 
The gold purchased on your behalf is stored with Brink's the leading safe keeper
of precious metals across the world. The gold is insured, both for storage and
transit when being delivered to you. Further, IDBI Trusteeship has a charge on
all gold stored in the vault in your favour. This ensures that your gold is
protected at all times regardless of any external events.
 
What is the maximum period of time for which my gold can be stored
with SafeGold?
 
You can store your gold with SafeGold for a period of 7 years from the date of
purchase. The custody shall be without charge for the first 24 months, and
thereafter, will continue to be stored by SafeGold for a nominal fee to cover
storage costs. You will be intimated in advance of being charged the fee, and will
have the option to sell or request delivery of your gold at all times.
 
Is there any lock-in period for this plan?
 
No, there is no lock-in period from the date of purchase. You can choose to sell
any amount of gold at the live sell price starting with minimum of Re. 1/- to
maximum of the amount of gold that you own.
 
Can I have a joint account for this plan?
 
No, you cannot have a joint account for SafeGold.
 
Can I cancel my sell order/request of gold sell?
 
No, you cannot cancel the order once it has been successfully placed on the
platform.
 
What if I die during the tenure of the plan?
 
In the event of your death, if specifically allowed by SafeGold subject to the
required due diligence, the title to your Gold lying in the vault and your account
shall transfer to your legal heir.
 
What will happen to my gold if my account is not operational on the
platform?
 
We will always endeavour to provide you with immediate access to your gold. If,
however, your account has been suspended for any reason, we would request you
to get in touch with the platform’s customer service centre, in order to reactivate
your account and access your gold once again. Customers may get in touch with
our customer service centre as a secondary recourse.
 
Delivery
 
How can I withdraw my gold?
 
You can request delivery for all or part of your gold holding, starting from 0.5
gm, and multiples thereof. You can select the quantity and denomination of the
gold you wish to withdraw from the available options of coins. Each coin will
have different making charges, based on the weight and design of the coin. You
must confirm the transaction by paying the additional making and delivery
charge. The coins will be delivered at your notified address by a logistics
provider arranged by SafeGold, and you will receive a confirmation on your
registered mobile number.
The delivery can be tracked at any time by logging into the platform.
 
Is it possible to store my withdrawn gold coins in safe custody and have
them delivered later?
 
Once you place a delivery request, you have to accept the delivery made to you.
It cannot be made at a later date.
 
Can I put in a different address from the one I used at the time of
registration on the platform?
 
Yes. you can enter a different address; however, verification of the address
change request shall be subject to the platform’s norms. In the event that the
new delivery pin code does not fall in our serviceable area, you may have to
enter different address.
 
Can I change my delivery address once I have placed a delivery request?
 
No, your address on the delivery request, once accepted on the platform, cannot
be changed.
 
Can I cancel my purchase order/request of gold purchase?
 
No, you cannot cancel the purchase order of gold once it has been successfully
placed on the platform.
 
Can I cancel my delivery order/request of gold?
 
Once you place a delivery request, you must accept the delivery made to you. It
cannot be cancelled or delivered at a later point in time.
 
Where is delivery of Gold available?
 
In case of delivery of coin/ bar, the shipment will be mandatorily delivered to
your registered address as provided by you and confirmed at the time of delivery
request. SafeGold maintains a list of serviceable pin codes, and prior to making
any purchase. You will be informed whether their pin code is serviceable by us.
 
Are there any charges for delivery of gold?
 
Yes, you will be required to pay the minting/ making charges, delivery charges
and applicable taxes. All coins are independently assayed to certify purity and
delivered in tamper proof packaging. Charges are as per the table below:
 
Coin Weight (GMS) Minting Charge (₹)
0.5 319
1 360
2 410
5 510
10 699
20 899
 
 
Can someone else redeem the physical gold coins on my behalf?
 
No, only you can request for the delivery of physical coins from your SafeGold
balance. However, in the event of your death, your legal heir will be able to
collect the gold coins by showing their proof of identity of along with the original
/ notarized copy of the death certificate and proof that the person is your legal
heir.
 
How can I be assured that the gold coins delivered to you are genuine
and trust worthy?
 
All our coins are hallmarked to certify purity and delivered in tamper proof
packaging and are dispatched directly from our premises. The coins are also
insured through transit, and checked before delivery to avoid any risk of fraud.
However, in case of any discrepancy, please get in touch with our customer
service centre.
 
What happens to my gold if I deactivate or close my account with SafeGold
balance present?
 
At the time of deactivation, you will be offered the option to withdraw your
SafeGold balance or request for delivery of your gold.
 
Grievance Redressal and Customer Complaints
 
Is there any regulator or Grievance redressal mechanism?
 
SafeGold is neither a Collective Investment Scheme nor a Deposit. Thus, this
plan doesn’t fall under the purview of SEBI or RBI, and there is no regulator for this product offering. To ensure that your interest is of foremost importance, a
Security Trustee has been appointed for SafeGold. For any grievances
specifically in relation to your gold purchase and related transactions, you can
approach the Security Trustee.
 
I have some queries regarding my gold account, how can I get in touch?
 
Please raise a ticket or get in touch with the platform’s customer service centre,
and we’ll respond to any queries you have on your gold account. The platform is
available to provide the first level of support and SafeGold shall be available to
address any questions/issues that may be escalated
R
Rohit is the author of this solution article.

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