The regulatory policy on gold sales announced during the recently presented Union Budget has come under severe criticism from gold retailers associations across the country. The Centre had proposed to make it mandatory to quote Permanent Account Number (PAN) or get the Know Your Customer (KYC) details form filled for any purchase or sale of gold in excess of Rs 1 lakh.

The Southern India-based Madras Jewellers and Diamond Merchants Association (MJDMA) has urged the government to withdraw the proposal. According to them, the new regulation is likely to affect gold sales in the country. At the current market price of gold, one could purchase merely 40 grams of gold. Wedding purchases generally exceed hundreds of grams of gold, MJDMA noted. The new decision may hurt gold sales, especially during the upcoming wedding season.

Currently, PAN details or KYC norms are not mandatory for purchase of gold up to Rs 5 lakhs. Also, bullion purchases up to Rs 2 lakhs are also exempted from such requirements. However, the Finance Minister had proposed the new limits as part of his efforts to curb black money in the country.

Jayanthilal Challani, President, MJDMA stated that they will meet the country’s Finance Minister to officially convey their protest. The Association demanded that the present practice be allowed to continue. At the same time, the body extended its support to the proposed implementation of Goods and Service Tax (GST) in April 2016.

The MJDMA has strong membership of more than 1200 small, medium and big jewellers. The prime objective of the Association is to promote and encourage the establishment of new derivative and related markets and to promote communication among members, to strengthen their relationship and to transfer information and experience among them.