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Synopsis: What are the impacts of new RBI rules that mandates to sell only hallmarked gold jewelry and artefacts.
What is hallmarking?
- Hall marking is a certification of purity. it is given by hallmarking centers (AHCs) accredited by the Bureau of Indian Standards (BIS).
- It assures that the quality of Gold is of same quality as promised by the jeweler.
- Hall marking of gold jeweler is allowed in 14,18,20,22,23,24 carats.
- In India, the hallmarking charges is ₹35 plus GST per piece, irrespective of the weight of the jewelry.
- Four basic signs of hallmarking include,
- The BIS mark denoted by a triangle,
- The caratage (22K915) showing purity.
- The mark of the jeweler.
- The accredited BIS.
What is ‘dabba hallmarking’ and how to ensure genuine hallmarking?
Dabba hall marking is a malpractice. it is done by.
- Fake certification, without due sampling or verification.
- Jeweler forging his own sign of hallmarking by buying the fake machine.
The authenticity can be ensured by
- Mandating the jewelers to display the license in their sales outlets.
- another way is to get the jewelry checked at the AHCs by paying nominal charges.
The jewelers are liable to pay penalty in case of fraud.
Impact of new RBI rules:
- Jewelers can continue to buy non-hallmarked jewelry: However, customers need to be careful. Either they can sell it to the same jeweler, or they should get the caratage of the jewelry ascertained and then check with different jewelers for the price.
- No impact on gold-loan: During the pandemic, lenders have taken non-hallmarked gold as collateral against the gold loan.
- This can continue as the Reserve Bank of India (RBI) regulations do not talk about mandatory hallmarking of gold taken as collateral.
- however, it says the gold taken as collateral should be valued at the average of the closing price of 22 carat gold for the preceding 30 days as quoted by the India Bullion and Jewelers Association Ltd.
- So, borrowers of gold loans will not be impacted.
- Exemption: Jewelers with annual turnover up to ₹40 lakh do not fall within the purview of mandatory hallmarking. hence, they will be exempted.
- However, they can get registration done if they wish to sell hallmarked jewelry.
- Also, hallmarking is not mandatory for gold jewelry weighing less than two grams.
