Paytm Gold: Few Not-So-Shining Things You Should Know!

Paytm comes up with another wonder – Paytm Gold. Some blessings for the middle-class and poor people who struggle to afford a piece of gold. I have also joined the revolution and bought about Rs.1000 worth of purest form of gold from Paytm at the market rate without incurring any additional cost.

May be, it is virtual gold for the time being. But, the awesomeness of the product is that your gold is under the security of MMTC, as Paytm claims. And, you can redeem it at any point of time in the form of 1 gm -2 gm- 3gm- 5gm- 10gm- 20gm.

Paytm has evolved as one of the most trusted brand. And, the success of Paytm Gold reiterates our belief.

However, their legal documentation (refer MMTC-PAMP terms) sounds quite scratchy and confusing. Before we jump into the conflicting zones, here are certain aspects which you possibly are not aware.

1. You have to make one physical redemption within the first year (from the date of your first purchase) – refer clause # 5

2. MMTC-PAMP will not be responsible to provide custody of your gold through out its life. It will only offer a maximum of 5 years custody from the date of purchase. There will be additional charges if you redeem the gold after Custody period – refer clause # 9

3. If you are redeeming gold and ask for delivery in the desired form, please inspect the package for any damage or tamper before receiving or signing for receipt. If you find any tampering, do not accept the parcel and return the same. In case you do that, you have take the liability for any loss or damage – refer clause # 35

In this volatile cyber environment, what if your Paytm account is hacked? Will Paytm fall under the RBI guidelines of fraudulent transaction.

I am not sure. But their legal documents indicating an opposite picture altogether:

– In clause # 22 of the MMTC-PAMP terms and conditions document, it says MMTC-PAMP and Paytm shall not be liable / responsible, in any manner whatsoever, for any loss / liability arising out of or relating to any technical failure / issue in Paytm Platform and / or acts / omission not attributable to MMTC-PAMP and Paytm

– Also clause # 35 has taken your agreement that you are not going hold MMTC-PAMP and Paytm responsible for any losses caused by reliance on information obtained in any of the newsletters, literature, reports, e-mail correspondence, website, or any other communication from MMTC-PAMP and/or Paytm.

Now, this is puzzling. What if the 24-carat gold (the one that I have been buying) is not in the form mentioned in their website (it says 999.9 Gold purity).

Everytime, it glitters, there is no assurance that it is always gold.

However, in spite of its legal complexities, I believe Paytm Gold is still worth a try. Not many are born with golden spoon. It’s an opportunity to buy a new one.