Gullak is generally considered a safe app for saving in digital gold, since it uses secure UPI-based payments, partners with an accredited gold refinery, and stores gold in insured vaults. However, it’s worth knowing that digital gold itself is not directly regulated by the RBI or SEBI, unlike traditional bank savings products.
Key Takeaways
- Gullak sells digital gold, which SEBI and the RBI do not regulate.
- Gullak says its gold comes from Augmont, a refiner it describes as BIS and NABL accredited.
- Those safety claims come from Gullak’s own listing.
- Gullak Gold+ is a separate leasing product with extra risk if a jeweller defaults.
- Regulated alternatives include gold ETFs.
What Gullak Actually Does
Gullak lets users accumulate digital gold through daily, weekly, or monthly SIP-style contributions, or through one-time purchases. Additionally, the app is positioned as a digital alternative to traditional gold savings, letting users build up gold holdings gradually instead of buying physical gold all at once.
How Gullak Handles Payments and Storage
Gullak accepts payments through standard UPI methods, which run on India’s regulated payment infrastructure. Furthermore, the gold purchased through the app is hallmarked according to Bureau of Indian Standards (BIS) guidelines and stored in insured vaults, with Gullak partnering with Augmont, a NABL and BIS-accredited gold refinery.
Is Digital Gold Regulated?
This is the most important nuance to understand: digital gold as a product category is not directly regulated by the RBI or SEBI in India. Consequently, while the payment rails Gullak uses are regulated, the digital gold investment itself operates in a space with less formal oversight than mutual funds or bank deposits.
Signs Gullak Takes Security Seriously
The app’s gold custody model relies on hallmarking, accredited refinery partnerships, and vault insurance, which are reasonable safeguards for a digital gold product. Therefore, these measures reduce (though don’t eliminate) the risks associated with unregulated asset categories.
Things to Consider Before Using Gullak
Since digital gold lacks the same regulatory protections as bank deposits, it’s worth only allocating money you’re comfortable treating as a growth investment rather than guaranteed savings. In contrast, traditional savings accounts and fixed deposits carry deposit insurance protections that digital gold products generally do not.
Comparing Gullak to Other Digital Gold Apps
Several apps in India offer similar digital gold savings products, each partnering with different refineries and offering slightly different fee structures for buying, selling, and redeeming gold. Additionally, comparing making charges and redemption minimums across a few platforms can reveal meaningful cost differences over time, even for similar gold-backed products.
When Digital Gold Makes Sense as Part of a Savings Plan
Digital gold can work well as a small, diversified portion of a broader savings strategy, rather than as your primary emergency fund, given its price volatility and limited regulatory oversight compared to bank deposits. Therefore, financial advisors commonly suggest treating gold allocations, digital or physical, as a modest percentage of total savings rather than a primary vehicle.
Reviewing your allocation periodically and rebalancing if gold grows to an outsized share of your overall savings is a reasonable habit regardless of which digital gold app you use.
Setting a fixed monthly amount for gold savings, rather than investing irregularly, also tends to smooth out the impact of price swings over time.
Keeping a simple record of your deposits and gold price at the time of purchase also makes it easier to track your actual returns over the long run.
Small, consistent contributions tend to outperform sporadic lump-sum purchases when it comes to managing exposure to gold price swings over time.
Gullak Gold vs Gullak Gold+
| Feature | Gullak Gold | Gullak Gold+ |
|---|---|---|
| What it is | Digital gold bought through Augmont | Gold leased to partner jewellers |
| Return source | Gold price movement | Gold price plus lease income |
| Main risk | Platform and custodian risk | Jeweller default risk, plus platform risk |
| Regulator | None specific to digital gold | None specific to leasing |
| Check first | Custodian, insurance and exit terms | Who guarantees what, in writing |
Read the Fine Print on Guarantees
A review of Gold+ warns that a bank guarantee may cover only the base gold value, not promised returns. Therefore, read exactly what is guaranteed before you invest. Next, compare buy and sell prices to see the real cost. Finally, remember that SEBI cautioned investors about digital gold in November 2025. Treat digital gold as a small, optional part of your savings.
Official Sources and Further Reading
Read the regulators’ investor cautions: SEBI, Reserve Bank of India. TechJBS is independent and not affiliated with these organizations.
Frequently Asked Questions
Is Gullak RBI-approved?
Gullak’s payment processing runs through RBI-regulated UPI infrastructure, but the digital gold product itself is not directly regulated by the RBI or SEBI.
Can I withdraw my gold as physical gold?
Many digital gold apps, including Gullak, typically offer options to redeem holdings as physical gold coins or jewelry after reaching a minimum quantity, though terms can change, so check the current policy in-app.
Is my money in Gullak insured like a bank deposit?
No. Digital gold isn’t covered by the same deposit insurance that protects traditional bank savings accounts, so it carries different risk characteristics.
How is the gold price determined on Gullak?
Digital gold apps typically price purchases based on live market gold rates, plus applicable making charges or margins, which vary by provider.
Is Gullak regulated by SEBI?
Digital gold is not a regulated security, so SEBI does not supervise it. Regulated gold options include gold ETFs.
What is the difference between digital gold and Gold+?
Digital gold holds gold bought for you. Gold+ leases your gold to jewellers, which adds default risk.
Does Gullak guarantee returns?
Gold prices move up and down, so returns are not guaranteed. Check what any guarantee covers before you invest.
Looking for more fintech app reviews? Check our CRED app safety review, browse App Reviews, or read our Navi app review.
