A total of 40 kgs of gold were bought in the last couple of months through Digital Gold product, launched by PayTM, a senior company official said.

The product, launched in partnership with MMTC-PAMP, has received wide appreciation from the people and have bought Digital gold from as many as 4,000 pincodes, PayTM Senior Vice president, Krishna Hegde told reporters here .

With mobile wallet user base of over 220 million, the company was hoping that at least 40 to 50 per cent of the customers would use its Digital Gold account to buy, store and sell gold within a short span of time, he said.

“A good number of PayTM users are now testing the product to understand if they can really buy Re 1 worth of digital gold. After the initial success, they try to buy for Rs 11. It is interesting,” Hegde said.

More than 1,000 users have bought digital gold toalling about one KG by 9 AM today, Head, Business Development and Strategy, MMTC India Harshit Pande said.

“Indians currently hold more than 24,000 tonnes of gold worth 900 Billion US Dollars and Indian households bought more gold in 2016 than any other financial asset despite the challenges of buying pure gold and storing it,” Hegde said.

On buying digital gold on Paytm, he said the customer would be able to buy gold online and store it in MMTC – PAMP’s vaults free of charge. They can also request for their gold to be delivered at their home in the form of minted coins or sell it online instantly. Above all, one can buy 24 carat 999.9 gold.

“The effort is towards making gold buying more organised,” Hegde said.