In a significant move to enhance consumer protection and ensure the authenticity of gold jewellery, the Indian government has expanded the mandatory hallmarking initiative to 361 cities. The latest phase, which began on November 5, 2024, includes 18 additional cities, making it compulsory for all gold jewellery in these areas to carry a hallmark and a unique Hallmarking Unique Identification (HUID) code. This initiative aims to prevent fraud, maintain the purity of gold jewellery, and build consumer trust in the gold market.
Expansion of Hallmarking Mandate
The government has taken decisive steps to prevent fraud in the gold jewellery sector, a space where consumers often fall prey to dishonest practices. With gold being a popular investment option and a staple in many households, it is crucial for buyers to have confidence in the authenticity of the products they purchase. The fourth phase of mandatory hallmarking addresses this issue by extending the programme to include 18 more cities, bringing the total number of covered cities to 361.
According to a recent notification from the Ministry of Consumer Affairs, the new phase aims to ensure that only hallmarked gold jewellery is bought and sold in the specified regions. This not only protects consumers but also helps maintain the integrity of the gold market by standardizing the quality of jewellery sold across the country.
Which Cities Are Affected by the Latest Expansion?
As part of the fourth phase, the mandatory hallmarking requirement has now been implemented in 18 districts across 11 states and Union Territories. These include:
- Andhra Pradesh
- Bihar
- Haryana
- Himachal Pradesh
- Kerala
- Odisha
- Puducherry
- Rajasthan
- Tamil Nadu
- Uttar Pradesh
- Uttarakhand
With these additions, hallmarking will now be enforced in a total of 361 districts nationwide. This strategic move aims to cover more regions, ensuring a wider reach and consistent enforcement of quality standards in the jewellery industry.
Progress of the Hallmarking Initiative
The introduction of mandatory hallmarking is part of a phased rollout that began on June 23, 2021, with the first phase covering 256 districts. The second phase, launched on April 4, 2022, added 32 districts to the list, while the third phase expanded the initiative to 55 districts starting September 6, 2023.
Now, with the fourth phase fully underway, the government is making significant strides toward ensuring that consumers across the country have access to only certified gold jewellery. The scheme aims to protect customers from being misled by counterfeit or substandard products and reduce the risk of fraud within the industry.
Increasing Number of Registered Jewellers and Hallmarking Centres
As part of this growing initiative, the number of registered jewellers and hallmarking centres has seen substantial growth. Government data reveals that the number of registered jewellers who are compliant with the hallmarking law has surged from 34,647 to 1,94,039 since the programme’s inception. This dramatic increase reflects a significant shift in the industry, with jewellers recognizing the benefits of participating in the hallmarking scheme and complying with the legal requirements.
Additionally, the number of Assaying and Hallmarking Centres (AHCs), which are responsible for certifying the purity of gold jewellery, has also grown. The number of these centres has risen from 945 to 1,622, improving the availability and accessibility of hallmarking services for both jewellers and consumers. This increase in hallmarking centres has made it easier for jewellers to comply with the law and for consumers to access certified products, ultimately promoting a more transparent and trustworthy market.
What Is the Hallmarking Unique Identification (HUID) Code?
One of the key features of this hallmarking initiative is the introduction of the Hallmarking Unique Identification (HUID) code. This alphanumeric code is stamped on every piece of gold jewellery and provides essential information about the jewellery’s purity, the jeweller who sold it, and the testing centre responsible for certifying it.
The HUID code is a critical tool for verifying the authenticity of gold jewellery. It not only assures consumers of the quality of their purchase but also provides a clear mechanism for tracking and identifying any discrepancies. With the HUID code, customers can rest assured that they are receiving the full value for their investment, as the code guarantees the purity of the gold.
Using the BIS Care App to Verify Jewellery Authenticity
To further strengthen consumer confidence, the Bureau of Indian Standards (BIS) has introduced a mobile application called BIS Care. This app allows consumers to easily verify the authenticity of their gold jewellery by scanning the HUID code. Through the BIS Care app, customers can check the purity of their jewellery and confirm that it complies with the government’s hallmarking standards.
In addition to verification, the app also provides a platform for consumers to lodge complaints if they suspect any irregularities or misuse of the BIS hallmark. This feature ensures that any concerns regarding the authenticity of a product can be addressed promptly, further protecting consumer interests and holding jewellers accountable for their products.
The Importance of Hallmarking in Consumer Protection
The implementation of mandatory hallmarking is a significant step toward safeguarding consumers from fraud and ensuring that they receive quality products. Gold jewellery, often considered a major financial asset, requires transparency to prevent the sale of substandard or fake items. By making hallmarking and the HUID code mandatory, the government is offering consumers a way to verify the purity of their gold jewellery and protect themselves from deceptive practices.
The hallmarking system also benefits the jewellery industry by establishing a standardized benchmark for quality. As more jewellers participate in the scheme, the market will become increasingly transparent, with consumers gaining greater confidence in the products they buy. This move will likely drive long-term growth for the industry as consumers demand more trustworthy and verified products.
Conclusion: A Transparent Future for India’s Gold Jewellery Market
The expansion of the hallmarking initiative to 361 cities marks a significant milestone in the Indian government’s efforts to regulate the gold jewellery market. With more districts now included in the scheme, a greater number of consumers across the country will be able to purchase gold jewellery with confidence, knowing that it has been verified for purity and quality.
As the initiative continues to grow, the number of registered jewellers and hallmarking centres will likely increase, ensuring that the hallmarking system remains accessible and efficient for both jewellers and consumers. The introduction of the HUID code and the BIS Care app provides additional layers of transparency and protection, empowering consumers to make informed decisions.
In the coming years, India’s gold jewellery market will become more transparent and secure, benefiting both customers and industry professionals. By guaranteeing the authenticity and purity of gold jewellery, the government’s landmark initiative will help build a stronger, more reliable gold jewellery industry that consumers can trust.
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