Gold Redemption FAQ: BIS Hallmarking, 916 Purity, and Legal Requirements
1. How does the gold redemption process work?
We follow a simple and secure process for retrieving your pledged gold from loan firms:
- Advance Payment: First, we provide you with an advance payment to settle the outstanding amount at the gold loan firm.
- Gold Redemption: Once you receive the advance, you can redeem your pledged gold from the loan firm.
- Quality Check: After retrieving the gold, we ensure that it is genuine and check for important quality markers like BIS Hallmark and 916 purity.
- Final Payment: After verifying the gold’s authenticity and quality, we pay the balance amount for the full value of the gold items, and take possession of the gold in exchange during the process.
2. What is BIS Hallmarking?
BIS (Bureau of Indian Standards) Hallmarking is a certification that ensures the purity and authenticity of gold. It is a government-regulated process where the gold is tested and certified for its standard. A BIS hallmark includes the BIS logo, purity grade (e.g., 916), the assay center’s mark, and the jeweler’s identification mark. BIS Hallmarking guarantees that you are receiving gold of the declared purity.
3. What is 916 Purity in Gold?
916 purity refers to gold that is 91.6% pure, meaning that the item contains 22 karats of gold. The remaining 8.4% is made up of other metals like silver or copper, which are mixed in to make the gold more durable for crafting jewelry. 916 gold is one of the most popular choices for jewelry because it strikes a balance between purity and strength.
4. When did purity regulation come into effect?
The government of India made it mandatory for jewelers to sell only hallmarked gold jewelry starting from June 16, 2021. This move ensures that the gold sold across the country meets a uniform standard of purity and protects consumers from being cheated with impure gold.
5. Is it legal to sell non-hallmarked gold?
After the implementation of mandatory hallmarking in 2021, it is illegal for jewelers to sell gold jewelry without a BIS hallmark in many parts of India. However, gold ornaments that were made or sold before this regulation are still valid. If you possess non-hallmarked gold, you can still have it tested for purity, but selling new, non-hallmarked jewelry is not allowed.
6. Why is BIS Hallmarking important?
BIS Hallmarking is important because it:
- Ensures Purity: It guarantees that the gold is of the specified karat value.
- Avoids Fraud: The hallmark certifies that you are not being deceived with substandard or impure gold.
- Adds Value: Hallmarked gold is recognized and trusted, which can enhance the resale value of your jewelry.
- Legally Compliant: As per the mandatory hallmarking rules, selling hallmarked gold ensures that you are abiding by the law.
7. What happens if the gold is not hallmarked?
If the gold you pledge does not have a BIS hallmark or 916 purity, we will still verify its authenticity and purity through a manual testing process before proceeding with the final payment. However, hallmarked gold is preferred as it offers immediate confidence in the quality and purity of the item.
8. Can I redeem pledged gold if it is of lower purity than 916?
Yes, you can redeem gold of any purity from loan firms. However, the value of the gold will be adjusted according to its purity. Gold that is less pure than 916 may have a lower market value.
9. How long does the gold redemption process take?
The redemption process can usually be completed within 10 minutes to 2 hours , depending on the loan firm’s requirements and the quality verification process.
