New Delhi. The government has implemented new rules for gold hallmarking. This will have a direct impact on the jewelers, but common Indians also have a large amount of old gold jewellery. So, now such people who take gold loan by pledging the jewellery, may face problems.
Anuj Gupta, Research Vice President, IIFL Securities (IIFL), tells News18 that most Indians hold non-hallmarking jewellery. If they want to sell gold, then first hallmarking of gold should be done by hallmark agency. After this he should sell the gold or use it for loan. According to Gupta, this rule will not affect the people very much. But this can create problems for customers who have old and non-hallmarking jewellery. Therefore, jewelers are giving their feedback regarding the problem coming after the rule. The ministry is also ready to discuss those issues.
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20 carat jewelery will have to be melted down and converted into 18 caratAll India Gems and Jewelery Domestic Council chairman Ashish Pethe says that making hallmarking mandatory will affect gold loans. The cost of hallmarking old jewelery for gold loan will be very high. For such people, the hallmarking charge is Rs 35 per jewellery. But the problem is that hallmarking is only in 22 carat, 18 carat, 14 carat. Now if the jewelery is of 20 carat, then to convert it into 18 carat, it will have to be melted first and the making charge will also have to be paid for making it again. However, Pethe says that talks are going on with the ministry on mortgage gold. The government has constituted the committee. A clarification regarding this is expected to be issued soon.
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Now the quality of the gold coming for pledging will be good
Ranjan Sreedhiran, spokesperson of Manappuram, a large gold loan company, said in an email to News18 that Manappuram is registered as an NBFC under the RBI. Under this rule, the company lends money by pledging used domestic gold ornaments. According to the company’s understanding, the rule of gold hallmarking is applicable to retail jewellers. But now it will definitely happen that the quality of the gold coming for pledging will be good. This situation will bring more benefits to the borrowers. However, the company continues to give loans even after verifying the purity of non-hallmarked jewellery. At the same time, a spokesperson of Muthoot Finance says that the company is studying the new rules. HDFC Bank spokesperson says that the ministry is working on the clarification on the new rules. So it is too early to say anything now.
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Action will not be taken till August
The new rule is effective from June 15. But the government has initially implemented gold hallmarking in 256 districts of the country. Here are the hallmarking centers to check. Not only this, jewelers with annual turnover up to Rs 40 lakh are exempted from mandatory hallmarking. Also, till 31 August 21, the government will not take action against the traders.