Govt’s new KYC ruling takes out glitter from jewellery biz

Source: The Hitavada      Date: 08 Sep 2017 09:28:31


By Praveen Vighre,

THIS is another nightmare which is giving sleepless nights to jewellers. The Government has introduced a new ruling for jewellers wherein if the sales are of Rs 50,000 or above, they have to collect KYC from customers. The KYC documents include PAN card, Aadhar card or photo identity, and address proof.
“It is the beginning of the festival season and the Government is bringing new ruling day by day. Whether we should do business or only do a paper work,” wondered a leading jeweller.

Rajesh Rokde, Secretary of The Nagpur Sarafa Association and the Regional Director of GJF said: “The Government has introduced KYC norms above purchase of Rs 50,000 under the Prevention of Money Laundering Act (PMLA). The Act has brought the business on the back foot.”
Rokde said that majority of the people in the country were not having PAN card, especially the farmers. “People also hesitate to use plastic money as they have to pay banking charges,” he said. The sales of jewellery which were static last month might witness a downward spiral in the coming days, he claimed.

Pradeep Kothari, Director of GJF and Director of Karan Kothari Jewellers Pvt Ltd said: “Majority of our customers are ladies who visit our shops to purchase jewellery. They are not accustomed to carry KYC documents. People were somehow convinced to give KYC documents if they purchase jewellery above Rs 2 lakh. However, with the reducing limit to Rs 50,000, the Government has taken out glitter from our business.” He added that the sales had come down. Jewellers were in anxiety what would happen once the festive season was at its peak period.

Vilas Kale, Director of Tanishq store, Nagpur said: “The customers’ hesitation to furnish KYC documents like Aadhar card, PAN card has brought resentment among them. If this continues for another few days, we will see remarkable drop in our business. Customers are in panic as they are unaware about the next action of the Government.”

He said that the people did not have the habit of carrying the KYC documents. The problem would be worse with the rural customers as they were more sensitive.
Gold for 10 grams on Thursday was ruling at Rs 30,200. Sources in the market said that the prices would further go up to Rs 32,000 due to uncertainties in the international market.