Buying gold on Dhanteras? Hallmarking is mandatory. If purity is low, get compensation plus double testing fees. Verify with the BIS Care app.
In India, the tradition of purchasing gold during Dhanteras and Diwali is significant, with numerous individuals purchasing gold jewelry, coins, and biscuits during this auspicious occasion. In an effort to prevent substantial financial losses, it is imperative that consumers remain vigilant regarding the integrity of their purchases, as gold prices have increased by more than 50% in the past year.
A significant alleviation for consumers is the inclusion of a provision for compensation in the event that hallmarked gold jewelry is discovered to be less pure than advertised. The seller will be required to refund double the testing charges in addition to compensating for the discrepancy in purity.
What is gold hallmarking?
The Government of India has been gradually instituting mandatory hallmarking throughout the country to guarantee the purity of gold. This deployment is scheduled to occur with the following timeline:
Phase 1: Commenced on June 16, 2021, and encompassed 256 districts.
Phase 2 commenced on April 4, 2022, with the addition of 32 additional districts.
Phase 3 commenced on September 6, 2023, with the addition of an additional 55 districts.
Phase 4 (Most Recent): Commenced on November 5, 2024, and encompassed 18 additional districts.
Presently, gold hallmarking is mandatory in 361 districts. This implies that any gold jewelry acquired in these districts after November 14, 2024, must be accompanied by a hallmark, which is a government certificate that certifies its purity in accordance with established standards.
Methods for Confirming a Hallmark
A distinctive six-digit alphanumeric Hallmark Unique Identification (HUID) number has been required for each item of hallmarked jewelry by the Bureau of Indian Standards (BIS). The official BIS Care App enables consumers to effortlessly verify this HUID number.
The “Verify HUID” feature in the app can be employed to verify the authenticity of the jewelry and verify its purported purity.
Evaluating Unhallmarked or Antiquated Jewelry
If you possess old or un-hallmarked jewelry and desire to verify its purity, you may submit it to any Assaying and Hallmarking Centre (AHC) that has been accredited by the Bureau of Indian Standards (BIS). A maximum of ten pieces of jewelry may be submitted for testing at any given period. The center will offer a comprehensive report on the integrity of the jewelry, as well as provide information on whether it is hollow or composed of other metals.
Fees for Testing
Rs. 45 per unit
Minimum Fee: A payment of Rs 200 is required for each visit.
Compensation for Impure Hallmarked Gold
Certainly, a consumer is entitled to compensation from the merchant if their hallmarked jewelry is tested and its purity is determined to be lower than the standard indicated.
Sum of Compensation
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The consumer will receive a payment that is equivalent to twice the amount of the discrepancy in purity, as determined by the price at which the gold was sold.
Furthermore, the examination fees will be reimbursed.