·PIB·15 marks·250–350 wordsPolityEconomyS&T

Examine how the BIS Act, 2016 strengthened the standards regime in India, with reference to hallmarking of precious metals.

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In this answer
  1. Legal gaps the 2016 Act filled
  2. How the Act was put into practice
  3. Gaps that remain

Hallmarking certifies that a precious-metal article meets a notified purity standard, so that buyers do not pay for purity they do not receive [1]. Gold hallmarking had been voluntary since 2000 because the BIS Act, 1986 gave no power to make it mandatory [2]. The BIS Act, 2016 filled this gap and turned voluntary certification into an enforceable regime that can trace each article.

Legal gaps the 2016 Act filled

  • Statutory clarity: Sec. 2 defines "Hallmark" and "assaying and hallmarking centre" [3].
  • Power to mandate: under Sec. 14, the Centre can notify articles that must be hallmarked after consulting BIS [3].
  • Quality-gated marking: under Sec. 14(6) and 14(8), only recognised centres may apply the mark, and only to goods that conform to the standard [3].
  • Deterrence: the penalty provisions from Sec. 17 onwards make misuse punishable [3].

How the Act was put into practice

  • Phased mandate: gold hallmarking became mandatory in 256 districts on 23 June 2021 and covered 392 districts by Nov 2026 [1].
  • Traceability: from 1 April 2023, gold may be sold only if it carries a 6-digit HUID [4]. More than 65 crore gold articles have been HUID-marked [1].
  • Technology integrity: XRF machines are API-linked to BIS software and their data is timestamped. Transfer HUID helps prevent duplicate hallmarking [1].
  • Consumer empowerment: the BIS CARE app, available in 12 languages, shows an article's purity, weight and photos [1].
  • Formalisation: registered jewellers rose from 43,153 to 2,36,624, helped by free, lifetime registration on Manak Online [1].
  • Silver: the revised standard IS 2112:2025 sets 8 fineness grades [1]. Since 1 Sept 2025, any hallmarked silver must carry a HUID [5].

Gaps that remain

  • Uneven coverage: the mandate follows AHC presence, and recent phases were small: 18, 12 and 7 districts [6]. Rural buyers are covered last.
  • Capacity lag: AHCs grew only from 948 to 1,565, which works out to about 151 jewellers per centre [1].
  • Silver opt-out: silver hallmarking is still voluntary, so a jeweller can avoid HUID tracking by not hallmarking at all [5].
  • Opaque quality data: published figures count HUIDs issued, not how many random samples failed testing [1].

The 2016 Act therefore moved hallmarking from goodwill to law, and from simple certification to traceability. Next steps could be:

  • set up AHCs in districts not yet notified;
  • publish sampling results every year;
  • set a timetable to make silver hallmarking mandatory under the same Sec. 14 power.

The Parliamentary Standing Committee has already examined these concerns [7]. Acting on them would make "22K916" offer the same protection in every district.

Sources

  1. 1PIB: BIS Hallmarking explainer (05 Nov 2026)consumer-protection rationale, 256→392 districts, 65 crore HUIDs, XRF-API, Transfer HUID, BIS CARE, jeweller and AHC numbers, IS 2112:2025, sampling and audits
  2. 2PRS: Standing Committee Report on the BIS Bill (2012-13)the 1986 Act had no power to make hallmarking mandatory
  3. 3PRS: The Bureau of Indian Standards Act, 2016 (No. 11 of 2016)Sec. 2 definitions, Sec. 14, 14(6) and 14(8), penalties from Sec. 17
  4. 4PIB: Mandatory HUID-based Hallmarking from 01 April 2023HUID-only sale of gold jewellery
  5. 5PIB: Update on Mandatory HUID for Silver Jewellerysilver hallmarking voluntary; HUID mandatory on hallmarked silver from 1 Sept 2025
  6. 6PIB: 7 Additional Districts included in Sixth Phase of Mandatory Hallmarkingphase-wise additions of 18, 12 and 7 districts
  7. 7Standing Committee on Consumer Affairs, Food & PD, 33rd Report: Action Taken on the 27th Report 'BIS – Hallmarking & Jewellery' (Dec 2023)parliamentary review of hallmarking gaps
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