Gold Hallmarking Reforms: Stricter HUID Norms to Curb Fraud and Protect Consumers

Livemint - Economy · 15 Apr 2026 · 2 min read
Prelims · Economy Mains · GS3 Economy High relevance

The government is overhauling gold hallmarking with mandatory item-level digital tracking using Hallmarked Unique IDs (HUID) to eliminate certificate duplication and ensure purity, formalizing India's trust-based jewellery market.

Key points

Bureau of Indian Standards (BIS) is implementing a revamped hallmarking framework requiring jewellers to upload photographs and specifications for each jewellery piece linked to a non-reusable HUID.

Current system allows HUID duplication across multiple items, leading to consumer complaints about mismatches between certified and actual purity levels of gold jewellery.

New digital trail mandates permanent linkage of HUID to specific jewellery characteristics (design, size, weight), with IDs becoming invalid if the item is melted.

[GS3-Economy] The reform targets India's $50 billion gold market, aiming to reduce counterfeit hallmarking and boost consumer confidence in a sector contributing ~1.3% to GDP.

Pilot projects in select districts demonstrated how digital recording of jewellery attributes reduces manual errors and improves traceability through the BIS Care app.

Mandatory in 380 districts, the policy aligns with global best practices and enhances India's credibility in international gold markets post-2021 hallmarking mandate.

Since 2021 hallmarking mandate, over 580 million gold items have been certified, averaging 10 million monthly, indicating the scale of market formalization required.

Way Forward: Strengthen BIS enforcement capacity with AI-based image recognition for HUID verification, integrate hallmarking data with GSTN to track jewellery lifecycle, and establish consumer grievance redressal portals with QR-code verification at point of sale.

Key terms

Bureau of Indian Standards (BIS)

India's national standards body established under the BIS Act 2016, functioning under the Consumer Affairs Ministry. It develops technical standards, operates certification schemes, and enforces hallmarking regulations. Its expanded role in jewellery certification exemplifies state capacity building in consumer protection.

Gold Monetization Scheme

A 2015 government initiative allowing depositors to earn interest on idle gold holdings while recycling metal for productive use. Tighter hallmarking complements this policy by improving trust in gold's purity - a prerequisite for financialization of household gold stocks.

Hallmarking

A purity certification system for gold jewellery administered by BIS under the Bureau of Indian Standards Act, 2016. Mandatory since 2021, it ensures gold content matches stamped purity (e.g., 22K, 18K) through assaying at certified centers. Crucial for consumer protection in India's trust-driven jewellery market.

HUID (Hallmarked Unique Identification)

A six-digit alphanumeric code laser-marked on gold jewellery, introduced in 2021 as part of mandatory hallmarking. The new digital HUID system creates immutable links between physical items and their certification data, addressing a key governance gap in quality assurance mechanisms.