Mint Explainer: Why govt wants stricter gold hallmarking and what will change for buyers

The government is moving to close loopholes in its gold hallmarking system, introducing mandatory item-level tracking to end the fraudulent practice of reusing unique identification codes across multiple pieces of jewellery. By digitizing every ornament’s physical profile, including photographs and weight, the government aims to formalize a massive, trust-based retail market where light enforcement has often left consumers holding less than they paid for. Under the new framework from the Bureau of Indian Standards (BIS), will be required to upload detailed information for every single piece linked to a hallmark unique identification (HUID) number, including photographs and key specifications, at the time of hallmarking.

This would make it difficult to reuse or duplicate IDs across multiple pieces, an issue that has triggered consumer complaints in recent years. Mint explains.

Q 1) What problem is the government trying to fix?

At present, hallmarking, which is regulated by the Bureau of Indian Standards, assigns a unique HUID to each piece of jewellery as proof of purity. However, gaps in enforcement have led to instances where the same HUID has been used across multiple items. This creates a mismatch between what is certified and what is sold, undermining the system’s credibility. Consumer complaints have pointed to cases where jewellery purchased with a specific HUID and purity level was later found to differ in actual composition. In some instances, identical codes were linked to different items, raising concerns over duplication and misuse. The government now sees a need to plug these loopholes before they erode trust further in a market that relies heavily on certification.

Q 2) What is the proposed change?

The government is planning to shift to a stricter, item-level identification framework, where each jewellery piece will carry a distinct, non-reusable HUID linked to its individual characteristics, including design, size, and weight. The idea is to ensure that a unique ID truly corresponds to one specific item and nothing else. Under the proposed system, once a jewellery piece is assigned a HUID, it will be permanently tied to that item. If the jewellery is melted, the ID will be removed and cannot be reassigned. This marks a departure from current practices where, due to weak controls, IDs may have been reused or loosely applied.

Q 3) How will the new system work on the ground?

The revamped framework will require jewellers to follow a more rigorous and standardised process at the time of hallmarking. Each item will need to be digitally recorded with detailed attributes, including photographs and weight, which will be uploaded into official BIS systems. This creates a verifiable digital trail for every certified piece. The change builds on a pilot project carried out by BIS in select districts, where integrated systems were used to capture images and weight data of jewellery items. The pilot helped reduce manual errors and demonstrated how technology can improve traceability.

For consumers, this means that verification will go beyond simply entering a number. Through the BIS Care app, buyers will be able to check not just the HUID but also match it with product-specific details stored in official records. This makes it harder for jewellers to pass off one item under the certification of another.



Q 4) Why does this matter for buyers?

in India are often high-value and driven by trust. Any gap between declared and actual purity directly affects consumers. By ensuring that each HUID is uniquely tied to a single, documented item, the government aims to ensure that every piece is not just gold in appearance, but

The move is expected to reduce the risk of counterfeit hallmarking, duplication of IDs, and misrepresentation of quality. It also brings greater accountability to jewellers, who will now have to comply with stricter documentation and verification requirements.

Q 5) What is the broader impact?

The revamped norms will be followed by all retailers and wholesalers in the 380 districts where gold hallmarking has been made mandatory. The tightening of hallmarking norms reflects a broader push to formalise India’s jewellery market and align it with global best practices. Since hallmarking was made mandatory in phases from 2021, the system has expanded rapidly, now covering millions of jewellery items. This could not only improve consumer confidence domestically but also support India’s credibility in international gold markets.

Hallmarking was introduced in 2000 and made mandatory in phases from 2021, now covering about 400 districts. Since then, more than 580 million gold items have been hallmarked, averaging over 10 million a month, according to the consumer affairs ministry data.

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