Hallmarking of Gold [UPSC Current Affairs]

After March 31, 2023, the Bureau of Indian Standards (BIS) has prohibited the sale of hallmarked gold jewellery or gold artefacts without a 6-digit alphanumeric Hallmark Unique Identification Number (HUID). Know more about this development in this article. This is a topic relevant for the IAS exam economy segment.

New Norms for Gold Hallmarking

Notwithstanding the new norms, hallmarked jewellery left with consumers under old schemes will continue to be valid. Previously, jewellers could sell old hallmarked jewellery with four marks but no HUID along with the 6-digit HUID mark.

What is Hallmarking?

• The accurate determination and official recording of the proportionate content of precious metal in precious metal articles is known as hallmarking.
• Metals covered: BIS launched the Jewelry Hallmarking Scheme in the year 2000. At the moment, two precious metals, gold and silver, have been brought under the purview of hallmarking in India.
• Implementation: However, the Hallmarking of Gold Jewellery and Gold Artifacts Order, 2022, has successfully implemented mandatory hallmarking in 288 districts across the country, with effect from June 23, 2021.
• Marks: Following the introduction of the 6-digit HUID in 2021, the hallmark consisted of three marks: the BIS logo, the purity of the article, and the six-digit alphanumeric HUID. Each hallmarked item has a unique HUID number that can be traced.

Working Mechanism of Hallmarking:

• Mobile app: Using the ‘verify HUID‘ feature in the BIS CARE app, a consumer can check and authenticate hallmarked gold jewellery items with HUID numbers.
• Information: It includes the jeweller who had the article hallmarked, their registration number, the purity of the article, the type of article, and the details of the hallmarking centre that tested and stamped the article.
• Consumer-friendly: A common consumer can use this information to verify the article being purchased by matching it with the article type and purity.

What is the Significance of Hallmark?

• Compensation: As per BIS Rules, 2018, in case Hallmarked jewellery bought by the consumer is found to be of lesser purity than that marked on the jewellery, then the buyer/customer shall be entitled to compensation which shall be two times the amount of difference calculated on the basis of shortage of purity for the weight of such article sold and the testing charges.
• Consumer protection: It is a tool for safeguarding and protecting consumers, as well as increasing their confidence in purchasing hallmarked gold jewellery with traceability and quality assurance.

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