Planning To Purchase Jewellery? Know If You Require KYC Or Not

According to the reports, the information being circulated that any purchase of gold, silver, jewellery or precious gems even if below Rs 2 lakh, in cash require KYC-- are baseless.

(Representative Image/ Getty)

The Department of Revenue (DoR) under the Ministry of Finance on Saturday clarified that only purchase of jewellery above Rs 2 lakh needs mandatory Know Your Customer (KYC). News agency ANI quoted a DoR source saying as "Any purchase of gold, silver, jewellery or precious gems and stones below Rs 2 lakh does not require PAN or Aadhaar of a customer as mandatory KYC document." As per the report, the centre while clarifying a December 28, 2020 notification said that cash purchase of jewellery, bullion and precious gems and stones of value more than Rs 2 lakh is not allowed without KYC in the country for the past few years. The notice issued under the PML Act stated that persons/entities purchasing gold, silver or high value stones 'in cash transactions' worth Rs 10 lakh or above need to fill the KYC document as it is a requirement of FATF (Financial Action Task Force.) FATF is an inter-governmental body that oversees global money laundering and terrorist financing, and sets international standards aimed to prevent illegal activities. Sources clarified that the misinformation being circulated that any purchase of gold, silver, jewellery or precious gems even if below Rs 2 lakh, in cash require KYC-- are baseless. (With inputs from ANI)