India rethinks jewellery sales oversight after slump in gold demand
Indian authorities withdrew on Friday an amendment that made jewellers subject to anti-money laundering legislation and caused a drop in gold sales.
The Prevention of Money Laundering Act obliges banks and other financial institutions to report all cash transactions above 50,000 rupees ($765) to the government, including customers` personal identification numbers or tax codes.
Transactions by jewellers in the world`s second-biggest gold consumer were added to the list in August but without specifying a financial threshold.
However, that dented jewellery sales during the gold-buying festival season because customers were wary of providing personal details, industry body the All India Gems and Jewellery Trade Federation said.
"For the time being we have withdrawn the notification and we will be reissuing it with clear cut guidelines," Hasmukh Adhia, revenue secretary at the Finance Ministry, told reporters.
Demand for gold typically rises in the last three months of the year as consumer buy more for the wedding season and for festivals such as Diwali and Dussehra.
"It is a big relief. The timing is right – just before Diwali," said Ishu Datwani, owner of Mumbai-based Anmol Jewellers.
Indians will celebrate Diwali in the third week of October, a holiday period in which the buying of gold is considered auspicious.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Senior Citizen Latest FD Rates: Know what major banks like SBI, PNB, Canara Bank, HDFC Bank, ICICI Bank are providing on fixed deposits
Gratuity Calculator: Rs 38,000 as last-drawn basic salary, 5 years and 5 months of service; what will be gratuity amount?
EPFO Pension Schemes: Early pension, retirement pension, nominee pension and 4 other pension schemes that every private sector employee should know
Top 5 Small Cap Mutual Funds with best SIP returns in 1 year: See how Rs 25,000 monthly investment has grown in each scheme
Top 7 SBI Mutual Funds With Best SIP Returns in 1 Year: Rs 25,000 monthly SIP investment in No.1 fund has jumped to Rs 3,58,404
10:14 AM IST