New Delhi, Sept. 20 -- The government is considering tighter rules for digital gold, including mandatory physical bullion backing and possible oversight by RBI and SEBI. The proposals are still under discussion, but could change how digital-gold platforms operate and how investors are protected.

Digital gold could soon move closer to a formal regulatory framework, as the government examines ways to bring the fast-growing investment product under regulatory oversight.

The finance ministry has sought views from regulators, banks and other stakeholders on tighter rules for digital gold, including a proposal that every unit sold to investors should be backed by an equivalent quantity of physical bullion. Joint oversight by the Reserve Bank ...