After RBI withdraws Rs 2000 notes, jewellers association asks people not to purchase jewellery in panic

RBI Withdraws Rs 2000 Notes: After the Reserve Bank of India's (RBI) decision to withdraw the Rs 2,000 note, inquiries regarding the purchase of gold and silver from jewelers have increased. India has the second-largest consumption of gold in the world after China. Bullion traders' body, GJC, however, said unlike the situation witnessed during demonetisation in 2016, there is no panic buying of gold now.

Jewellers are taking 5-10% premium on gold purchase

In fact, gold purchases against Rs 2,000 notes have actually been lower in the last two days due to stricter 'know your customer' (KYC) norms.

With the ₹2000 denomination bank notes set to be withdrawn from circulation, there are several Myths surrounding it. Through this series, get to know the Facts related to this decision of @RBI.#MythsVsFacts #MythBusters @nsitharaman @finminindia @ianuragthakur @Murugan_MoS… pic.twitter.com/dHjieNtJ3Y

— Ministry of Information and Broadcasting (@MIB_India) May 21, 2023

However, sources said that some jewellers have started charging a premium of 5-10% on gold purchase, due to which the yellow metal is priced at Rs 66,000 per 10 grams.

At present, gold in the country is at a level of about Rs 60,200 per 10 grams.

Jewellers Association's appeal

Yogesh Singhal, president of the Bullion Jewellers Association (TBJA), has said that a customer can buy jewellery or any item from any jeweller at the market rate with a Rs 2000 note as this note is legal tender.

He said, according to the State Bank's circular, any person can exchange Rs 20000 from any bank without filling any form and without giving any ID, so why would the customer buy gold or other goods at an expensive price.

"Don't panic, don't fall in the trap of money changers, and don't fall in the trap of those selling gold at high prices. If the deadline of September 30 falls short, the association will demand to extend it," said Singhal.

Gold purchases reduced due to strict KYC rules

Sanyam Mehra, chairman of the All India Gem and Jewelery Domestic Council (GJC), said, "There are a lot of inquiries about buying gold or silver with Rs 2,000 notes, so more customers came to the shops on Saturday." 

However, due to stricter KYC norms, actual purchases have come down.

Mehra further said that the Goods and Services Tax (GST) and the Bureau of Indian Standards (BIS) hallmark rules have encouraged jewellery makers to be organised and conduct formal business.

Rs 2000 notes can be exchanged till 30 September

On May 19, the Reserve Bank of India (RBI) announced the withdrawal of Rs 2000 notes from circulation.

However, it has given the time till September 30 when people can deposit Rs 2000 such notes in their accounts or convert them in banks.

The RBI has also asked banks to stop issuing Rs 2000 notes with immediate effect.