How Will Indians Benefit From Mandatory Hallmarking Of Gold?

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How Will Indians Benefit From Mandatory Hallmarking Of Gold?

The government of India has made hallmarking mandatory for gold jewellery in the country and the process is being implemented by the Bureau of Indian Standards in a phased manner.

The Bureau of Indian Standards (BIS) is implementing the hallmarking of gold jewellery compulsorily in a phased manner. The government aims to bring transparency to the jewellery market and improve trust among consumers. Moreover, the government has also mandated the introduction of a Hallmark Unique Identification (HUID) on every piece of jewellery.

Steps are being undertaken for mandatory hallmarking in a phased manner in 256 districts. The jewellers' trade bodies have opposed the move citing the cumbersome process of testing and certifying every tiny piece of jewellery, amongst several other reasons.

What Is HUID Code?

HUID is a six-digit code comprising both numbers and letters and is given to every piece of jewellery at the time of hallmarking. Moreover, every piece of jewellery has its unique HUID. The entire stamping of the jewellery happens manually at the Assaying and Hallmarking (A&H) centre. The full hallmark comprises three symbols that give unique information about that jewellery. The BIS logo is the first symbol, a sign indicating the piece's purity and fineness, and the HUID is the last symbol. Since HUID is a distinct identity of the jewellery, it enables traceability. While, on the one hand, it is essential for the credibility of hallmarking, it also helps to address complaints against adulteration.

The registration of jewellers for the process is automatic and involves no human interference. The practice keeps a check on the malpractices by the jewellery traders. The government defines it as a safe system that risks data privacy and security. However, the Jewellers' Trade Bodies define the process of numbering every tiny piece of jewellery as a cumbersome process and add that it would increase the cost of the product for the customer.

How Does This Benefit The Consumer?

Gold plays a significant role in India and Indian families, therefore the government has begun hallmarking every jewellery piece in 256 districts in the first phase. All the districts have at least one A&H Centre. More than one lakh jewellers register themselves daily, and over three lakh pieces are hallmarked with the HUID number. The entire process of hallmarking provides third-party assurance to the consumers regarding the purity of the jewellery.

The move will enable the buyer to make informed decisions on whether the jewellery they are going to put money on is pure or not and would also help them to get the right value of that gold jewellery.

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Editor : Palak Agrawal
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