No KYC, No Gold! Take Your Aadhaar, PAN For Buying Gold At Jewellers As Rules Become Strict

When you go to buy gold henceforth, you will be required to produce your KYC documents for gold purchases. 

Read on to find out what KYC documents you will need to buy gold!

KYC Documents Required To Buy Gold As Government Agencies Become Stricter

As per new reports coming in, if you want to buy gold worth less than Rs. 2 lakh, you will have to carry your KYC documents such as the PAN card and Aadhaar card. Jewellers have started asking customers to provide these documents for gold purchases below Rs. 2 lakh. 

Jewellers also believe that the government might make the KYC mandatory for all the cash transactions in the upcoming budget.

As per reports, the jewellers are afraid that government agencies might crack down on them in case any suspicious activity or transactions is found after the  introduction of Prevention of Money Laundering Act (PMLA) for the sector.

Government To Make Gold As An Asset Similar To Stocks And Real Estate

As of now, all asset classes, except gold require KYC documents for any transaction. However, in the case of gold, KYC documents will be required to be submitted if you are buying gold worth Rs. 2 lakh or more. The government is also looking into making gold an asset class at the same level as stocks, mutual funds, and real estate.

Surendra Mehta, national secretary, India Bullion & Jewellers Association (IBJA) has said, “By notifying dealers in precious metal and precious stones under PMLA, the jewellers who deal in gold, silver, platinum, diamond and stones have become reporting entity to the Financial Intelligence Unit.”

He also said that jewelers will be required to report all transactions that seem suspicious and all cash transactions that pertain to a single operation or multiple operations beyond Rs. 10 lakhs ina month to the government authorities.

Apparently, there have been instances where people buy gold worth less than Rs. 2 lakh in the name of family members so that they don’t get caught. However, with the government agencies becoming stricter, jewelers feel that they are now linking all transactional details in order to catch them.