Fourth phase of gold hallmarking begins; 4 lakh pieces marked daily

The Centre on Thursday announced the launch of the fourth phase of gold hallmarking, extending the mandate to an additional 18 districts, bringing the total coverage to 361 districts.

A Ministry of Consumer Affairs statement noted that over four lakh gold items have now been hallmarked with the Hallmark Unique Identification (HUID) number, marking a milestone in India's drive for transparency and Consumer confidence in the gold jewellery sector.

The fourth phase commenced on 5 November, the statement added. The Bureau of Indian Standards (BIS) initiated this phase under the Hallmarking of Gold Jewellery and Gold Artefacts Amendment Order, 2024, as part of government’s efforts to enhance accountability and safeguard consumers from deceptive practices in the gold market.

What is gold hallmarking?

Gold hallmarking is the process of certifying the purity and fineness of gold. If you see the BIS hallmark on the gold jewellery or gold coin, it means it conforms to a set of standards laid down by the BIS. Hallmarking gives consumers an assurance regarding the purity of the gold they buy.

The first phase of hallmarking, launched on June 23, 2021, covered 256 districts. The second phase, starting on 4 April 2022, added 32 districts, while the third phase, introduced on 6 September 2023, expanded hallmarking to 55 additional districts.

The hallmarking initiative has seen substantial progress, with over 4,00,000 gold items now being hallmarked daily, driving a fivefold increase in registered jewellers—from 34,647 in 2021 to 1,94,039 in 2024. Likewise, the number of Assaying and Hallmarking Centres has grown from 945 to 1,622.

The BIS Care app has been instrumental in giving consumers easy access to information about hallmarked gold jewellery. By entering the HUID number, consumers can verify essential details such as the jeweller’s registration number, the Assaying and Hallmarking Centre’s recognition number, the article type, hallmarking date, and metal purity.

The app also enables users to file complaints regarding quality issues or misleading advertisements.

As the hallmarking initiative expands, the ministry aims to create a more transparent, consumer-oriented gold market. These measures are expected to help consumers make informed decisions and bring the gold sector closer to greater standardisation.

Following is a Q&A  (compiled by Paisabazaar) that answers all your questions about hallmarking:

How is hallmarking done? BIS grants a licence to jewellers and they can get their jewellery hallmarked from any of the BIS-recognised assaying and hallmarking centers.

How do I know the jewellery store I am buying gold from is certified by BIS?  You can check the list of jewellers that are certified and licensed by the BIS from the official website of the BIS. the list also provides the names and addresses of the jewellers and the validity date of the license..

How does buying hallmark gold jewellery benefit me? Hallmark certifies the purity of gold. Since it is the mark of purity, it instills confidence in the mind of the consumer. When you buy a piece of hallmarked 18K gold jewellery, you are buying 18/24 parts gold and the rest is an alloy.  

Why does the hallmarked gold price vary from the other gold rates in India? Gold prices slightly vary from city to city in India due to different jewellery associations, transportation costs, etc. However, the main reason is the adding of hallmarking charges.

Why should I go for hallmarked gold which is only 91.6% pure? Hallmark is a sign of purity of gold and any grade (24K, 22K, 18K, 14K  etc.) can be hallmarked. The consumer will only be charged for the gold, as per the purity, that is being added to the gold coin or in jewellery. If you are buying 22K gold jewellery, you will be charged as per the prevailing 22K gold rate with respect to its weight.