NSE Promotes Electronic Gold Receipts to Cut Gold Import Bill by $5–6 Billion

The National Stock Exchange of India (NSE) has called on investors to consider purchasing Electronic Gold Receipts (EGRs) this Dhanteras in place of physical gold. This initiative is aimed at promoting gold that is recycled and refined domestically, which could significantly reduce the country’s reliance on imported gold.

NSE highlighted that each EGR traded on its platform is fully backed by physical gold that has been recycled and refined within India. The gold used for backing these receipts meets high purity standards of 995 or 999 and is securely stored in vaults approved by the Securities and Exchange Board of India (SEBI). The exchange emphasized that none of the gold backing these EGRs comes from imports, stressing the domestic nature of the supply.

According to the NSE, if gold funds holding the combined 116 tonnes of gold on the exchange lent out half of these holdings in the form of EGRs, India could save between USD 5 and 6 billion annually by reducing gold imports. This is significant considering that India imported 721 tonnes of gold worth USD 72 billion during the financial year 2025-26, marking a 24 percent rise in value compared to the previous year.

The NSE explained that every 100 tonnes of domestically sourced gold converted into EGRs could reduce the import bill by roughly USD 10 billion. This reduction would contribute to conserving foreign exchange reserves and supporting the growth of India’s indigenous gold ecosystem.

Indian households are estimated to hold between 25,000 and 35,000 tonnes of gold, much of which remains outside formal financial channels. To tap into this substantial domestic gold inventory, NSE is developing a mobile application that will facilitate doorstep collection and authorized center-based collection of physical gold from households. The collected gold will be accurately weighed and assayed, and its pure gold content will be credited to the investor’s demat account in the form of EGRs.

The NSE launched its EGR segment on May 4, 2026, and has since built a comprehensive ecosystem including refiners, vaults, depositories, clearing infrastructure, and market makers to support trading. The segment has seen 2,781 trades involving 6,197 units, with a total traded value of Rs 97.5 crore in the current financial year.

Trading of NSE EGRs is available daily from 9 am to 11:30 pm, with settlements processed on a T+1 basis. This extended trading window offers investors flexibility compared to traditional gold trading hours.

By urging investors to buy NSE EGRs instead of physical gold this Dhanteras, the exchange aims to foster a more sustainable and efficient gold market in India. The move aligns with broader economic goals to reduce import dependency and promote the use of indigenous resources.

As gold continues to hold cultural and financial significance in India, innovations such as Electronic Gold Receipts offer an alternative that blends tradition with modern financial infrastructure. This development not only benefits individual investors but also has the potential to positively impact the national economy by curbing the import burden and encouraging formalization of gold holdings.