Government eases KYC norms before festive and wedding season
On October 6, Government revoked the notification on the gems and jewellery sector which included jewellers under the Prevention of Laundering Act.
The notification meant that gems and jewellery purchases `50,000 do not require PAN any more. The industry praised the move and termed it as a positive step that will boost the festive. “This is a great news for the industry and we are thankful to the government for this decision. This is a positive step and will help boost the market sentiment. We look forward to good business during festive season,” All India Gems and Jewellery Trade Federation (GJF) Chairman Nitin Khandelwal said.
Mr. Aditya Pethe, Director of WHP Jewellers said, “This is a much welcomed move. The industry was affected immensely as it restricted consumers from buying jewellery. It was really not practical since a lot of people don’t carry all the KYC documents with them as one of the reasons.” The timing of the announcement was a big welcome as Diwali was around the corner and this move will translate into a positive sentiment amongst buyers.
Gold sales are likely to revive during the ensuing Diwali festival with the government revoking an order that mandated PAN and Aadhaar cards for purchases above `50,000, an industry body said. Mr. Vaibhav Saraf, Director of Aisshpara Gems and Jewels said, “Removal of PMLA from gems & Jewellery sector is a major relief and a welcome decision especially due to the festival season being around the corner. This will reduce the compliances that need to be made and make the festive season even better.”
More than jewellers, consumers were affected with the notification as they were not comfortable showing PAN and Aadhaar documents. “The rollback of this order will definitely improve ease of doing business,” Khandelwal said. However, there is a need to create more awareness about the development among consumers, he added. Echoing views, Kerala-based Kalyan Jewellers Director Rajesh Kalyanraman said it’s a “positive” move and should help improve sales in the coming days. “Sales were down in last two months…We are hoping Diwali sales to be positive. We are expecting a 15 per cent growth from over year-ago period,” he said.
In a notification issued on August 23, the government had brought jewellery dealers under the purview of the Prevention of Money Laundering Act 2002 (PMLA) and were told to report on buyers making purchases over `50,000. Therefore, PAN and Aadhaar cards were made mandatory as part of ‘Know your customer (KYC)’ rule.