Archive · 2 Aug 2026
Gold ATMs in India Face Low Adoption Amid Cultural Preferences
Gold ATMs let people buy or sell gold coins using a card, just like a regular ATM.
The first one in India opened in Hyderabad in December 2022.
But many people still prefer to go to a jewelry shop where they can see the gold and talk to a friendly seller.
Gold is also a popular way to hide money, so the government wants people to buy gold in paper form instead of real gold.
Because of these habits, the gold ATMs have not been used a lot yet.
Gold ATMs allow instant purchase or sale of 24‑karat gold coins via card.
The first Indian gold ATM launched December 2022 in Hyderabad by Goldsikka.
Usage remains low due to trust in traditional jewelers and preference for wearable gold.
Gold remains a major black‑money vehicle, with 30‑35k MT held by households and temples.
Government initiatives to curb gold purchases and promote paper gold have not reduced demand.
- Who
- Indian consumers and gold ATM operators
- What
- Introduction and low uptake of gold ATMs
- When
- Launched December 2022; current status
- Where
- Hyderabad, Tirupati, and other Indian cities
- Why
- Cultural preference for traditional jewelers and trust issues
- First Indian Gold ATM Launch
- December 2022, Hyderabad
- Operator
- Goldsikka
- Technology Partner
- OpenCube Technologies
- Gold held in India
- 30,000–35,000 MT
- Government Initiative
- Move to paper gold, ban gold purchases 2024