BIS Hallmarking 2.0: The New Six-Digit HUID Standard and What It Means for Gold Loan Borrowers

Stamped inside most gold bangles sold today sits a six-character code, easy to miss and impossible to fake usefully. That code is the heart of BIS Hallmarking 2.0. The Bureau of Indian Standards replaced the old four-component gold mark with a mandatory six-digit alphanumeric HUID, the Hallmark Unique ID, from June 2021, giving every hallmarked piece its own traceable identity. For anyone pledging jewellery for a gold loan, the change matters directly: it shapes how lenders verify purity before valuing the collateral.

What Is BIS Hallmarking 2.0 and How Does It Differ from the Old System?

Hallmarking in India began in 2000 under the Bureau of Indian Standards as a voluntary purity certification scheme. The original mark carried four components: the BIS logo, the purity grade such as 22K916, the identification mark of the Assaying and Hallmarking Centre that tested the piece, and the jeweller's own mark. It worked, but nothing tied a mark to one specific piece of jewellery.

From June 2021 that changed. The Bureau made the six-digit alphanumeric HUID mandatory on hallmarked gold jewellery, replacing the centre and jeweller marks. Each code is unique to a single piece and is registered in the Bureau's central database at the moment of hallmarking. The old system certified a batch process; the new one certifies the individual item. That shift from process to piece is the whole point of calling it Hallmarking 2.0.

The Four Components of the Old BIS Hallmark

Jewellery hallmarked before June 2021 typically carries:

1. The BIS logo
2. The purity or fineness grade (for example 22K916)
3. The Assaying and Hallmarking Centre's identification mark
4. The jeweller's identification mark

Some older pieces also carry a year-of-marking letter. These marks remain valid evidence of testing; they simply cannot be looked up piece-by-piece in a database.

What the Six-Digit HUID Replaced and Why

The HUID took the place of the centre mark and the jeweller mark, collapsing two identifiers into one traceable code. Registration in the central database at the time of hallmarking makes it impossible to reuse a code or transfer it to a different piece; the record and the jewellery are bound together. Verification moved into the public's hands too. The BIS Care mobile app lets anyone enter a HUID and see the registered details of that exact piece within seconds.

How to Read a BIS Hallmark on Gold Jewellery

A current hallmark carries three elements, usually laser-marked on an inner or rear surface. First, the BIS logo, a small triangle with the letters BIS inside it. Second, the purity grade: 22K916 for 22-carat gold (91.6 per cent pure), 18K750 for 18-carat (75 per cent), 14K585 for 14-carat (58.5 per cent). Third, the six-digit alphanumeric HUID itself, something like AB1234.

Checking a code takes a minute. In the BIS Care app, the Verify HUID option accepts the code directly, and the app returns the jeweller, the hallmarking centre and the article details registered against it. A check run at home, before a lender visit, shows the grade registered against the piece and whether the mark is genuine, which removes one source of surprise at the valuation desk.

What BIS Hallmarking 2.0 Means for a Gold Loan

Three practical consequences follow for borrowers.

The first is verification. A HUID may assist in verifying hallmark registration details associated with a piece of jewellery before valuation. However, lenders generally conduct independent purity assessment and valuation procedures in accordance with applicable regulatory requirements and internal policies. The database check supplements rather than replaces physical testing: under the RBI (Lending Against Gold and Silver Collateral) Directions, 2025, implemented by regulated lenders from April 2026, the lender's valuer still conducts the purity check with the borrower entitled to be present, and issues a certificate itemising purity, gross and net weight, deductions and value.

The second is the link between grade and money. A common misconception holds that any hallmarked piece is valued the same. It is not. The hallmark certifies purity; purity drives the valuation. A 22K916 bangle contains more gold per gram than an 18K750 one, so it supports a higher per-gram value, and the loan amount then follows the tiered loan-to-value limits, up to 85 per cent for loans up to ₹2.5 lakh, up to 80 per cent above ₹2.5 lakh and up to ₹5 lakh, and up to 75 per cent above ₹5 lakh.

The third concerns older jewellery. Pieces hallmarked before June 2021 carry the four-component mark without a HUID, and plenty of family jewellery carries no hallmark at all. Lenders may accept such pieces, relying on their own physical purity testing rather than a database record, though policies differ, so a quick check with the lender before visiting may save a trip.

Which Jewellery Is Exempt from Mandatory Hallmarking?

The mandatory hallmarking framework provides exemptions for certain categories, including:

• Gold jewellery manufactured for export
  • Jewellery supplied to international organisations
  • Articles below the prescribed weight threshold (currently below 2 grams)
  • Jewellery made to special order for specific customers, where permitted under applicable regulations
  • Any additional categories notified by the Government from time to time

Exemption from mandatory hallmarking does not automatically determine loan eligibility. Acceptance of any jewellery as collateral remains subject to the lender's assessment processes, valuation standards, and applicable policies.

Conclusion

Hallmarking 2.0 turned a batch certification into a per-piece identity system. For the new hallmark system 2026 borrowers encounter today, the six-digit HUID means purity can be verified digitally before a piece ever reaches the valuation desk, while the lender's own testing, conducted in the borrower's presence under the framework implemented from April 2026, settles the final figure. Higher grades support higher per-gram values, older marks route through physical testing, and the BIS Care app puts the first check in the owner's own hands. Valuation procedures, disclosures, and collateral handling are carried out in accordance with applicable policies and regulations.

Disclaimer : The information in this blog is for general purposes only and may change without notice. It does not constitute legal, tax, or financial advice. Readers should seek professional guidance and make decisions at their own discretion. IIFL Finance is not liable for any reliance on this content. Read more