NSE Promotes Electronic Gold Receipts Ahead of Dhanteras to Reduce Gold Imports

Ahead of Dhanteras, the National Stock Exchange (NSE) has urged investors to consider Electronic Gold Receipts (EGRs) as an alternative to physical gold purchases. The exchange highlighted that adopting EGRs could help India avoid gold imports worth USD 5–6 billion annually if gold funds hold NSE EGRs and lend half of their combined 116-tonne gold holdings.

According to the exchange, every NSE EGR is backed entirely by physical gold that is recycled and refined within India. The gold maintains purity levels of 995 or 999 and is stored securely in SEBI-approved vaults. The exchange emphasized that none of the gold backing the EGRs is imported.

NSE EGRs are held in dematerialised accounts and can be traded in quantities ranging from 10 milligrams to one kilogram. Investors also retain the option to convert these digital receipts into physical gold.

Data shared by the NSE indicates that India imported 721 tonnes of gold valued at USD 72 billion in FY26, marking a 24 percent increase in value compared to the previous financial year. The exchange estimates that every 100 tonnes of domestic gold brought into the NSE EGR segment reduces the import bill by approximately USD 10 billion.

Estimates from the exchange suggest that Indian households hold between 25,000 and 35,000 tonnes of gold, a significant portion of which currently remains outside the formal financial system. To help mobilize these private holdings, the NSE is developing an application that will enable households to convert existing gold into EGRs through doorstep collection or authorized collection centres. Under this process, the gold will be weighed, assayed, and credited to the investor's demat account based on its pure gold content.

The NSE launched its EGR segment on May 4, 2026, building an ecosystem that includes refiners, vaults, depositories, clearing infrastructure, and market makers. During the current financial year, the segment has recorded 2,781 trades involving 6,197 units, representing a traded value of Rs 97.5 crore. Trading on the platform is available from 9 am to 11:30 pm, with settlement executed on a T+1 basis.

The exchange maintains that promoting domestically recycled gold through digital receipts will conserve foreign exchange and strengthen India's domestic economic ecosystem.

"The promotion of Electronic Gold Receipts by the NSE represents a practical step toward formalizing the massive amounts of gold held by Indian households. By utilizing domestically recycled gold and integrating digital trading infrastructure with secure vaulting, this initiative provides investors with a transparent alternative to physical purchases while directly addressing India's heavy import dependence. As the digital gold ecosystem matures, it has the potential to streamline asset management and contribute positively to the national current account." — Dr. Shishir Gupta, Founder & CEO, StartupLanes