Jewellery Without a Hallmark: Legal Status and Your Options
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Somewhere in most Indian homes sits a box of older gold, a grandmother's bangles, a wedding chain from the nineties, none of it carrying the modern stamp. Let the worry rest at the start: owning jewellery without a hallmark is completely legal in India, and so is selling it to a jeweller or pledging it for a loan. Hallmarking law restricts what jewellers may sell, not what families may keep. Lenders know this well; IIFL Finance, for instance, values pledged gold by testing its purity at the branch, hallmark or no hallmark. This guide covers the legal position, the exemptions, how to get old pieces hallmarked, your options to sell, exchange or pledge, and the penalties, which fall on sellers, never on you.
Is It Illegal to Own Jewellery Without a Hallmark?
No. The mandatory hallmarking regime, in force since 16 June 2021 and expanded in phases to 380 districts as of March 2026, places its obligation on the trade: jewellers in covered districts may only sell gold jewellery carrying the BIS hallmark, which since 2023 means the three-mark format of BIS logo, purity grade such as 22K916, and a six-character HUID. Consumers face no such obligation in any direction. You may legally own non-hallmarked gold bought in any era, wear it, gift it within the family, and sell it to a jeweller, a position the Bureau of Indian Standards itself states plainly: old un-hallmarked jewellery lying with consumers can be sold to jewellers. The jeweller then hallmarks it, or melts and remakes it, before any resale. Your side of the transaction was never restricted.
Which Items Are Exempt from Hallmarking?
Even on the trade side, the rules carve out categories that need no hallmark at all:
- Articles weighing under 2 grams, where marking is often physically impractical
- Kundan, polki and jadau jewellery, whose construction does not suit standard assaying
- Gold watches and fountain pens
- Jewellery meant for export, and pieces for government-approved exhibitions
- Gold bullion and gold thread
- Jewellers with annual turnover up to INR 40 lakh, who are exempt from the registration requirement
Silver deserves its own line: silver hallmarking remains voluntary across India as of 2026, though any silver a jeweller chooses to hallmark must carry a HUID under the standard revised in September 2025. So, an unmarked silver article breaks no rule anywhere.
How to Get Old Jewellery Hallmarked: A Step-by-Step Process
Owners who want the modern stamp on old pieces can get it, and the route runs through BIS-recognised Assaying and Hallmarking Centres (AHCs).
- Locate a centre. The BIS website lists recognised AHCs by state and district, and the BIS CARE app carries verification tools. Many jewellers will also route pieces to an AHC on your behalf.
- Submit the article for testing. The centre assays the piece's purity using prescribed methods under the relevant Indian Standard.
- Hallmarking on confirmation. If purity is confirmed, the article is marked with the BIS logo, its tested purity grade and a fresh six-character HUID, at a modest per-article charge.
- Verify and keep records. The HUID can be checked on the BIS CARE app, which displays the purity, jeweller and centre tied to the code. Save the receipt with your other jewellery papers.
Two honest caveats. Some old pieces test below their assumed purity, and the hallmark will state what the assay finds, not what family memory says. And intricate or stone-set items may need assessment of whether marking is feasible without damage, which the AHC or jeweller will advise on.
Your Options: Sell, Exchange, or Pledge Non-Hallmarked Gold
Selling. Jewellers may buy back old un-hallmarked gold from consumers without restriction. The jeweller melts or assays the piece, pays on tested purity and net weight at the day's rate, and handles hallmarking before any resale. Take quotes from two or three buyers, since purity-testing methods and deductions vary.
Exchanging. The commonest route in practice: old gold traded against new jewellery, with the old piece valued by assay and the difference settled. The same comparison advice applies and ask for the valuation in writing before agreeing.
Pledging. A hallmark is not required to raise a Gold Loan. Under RBI's 2025 directions, the lender assays every pledged article regardless, with the borrower present, and issues a certificate recording purity, gross and net weight, deductions and value; the loan then sits within loan-to-value caps of 85% up to INR 2.5 lakh, 80% up to INR 5 lakh and 75% above, at prevailing benchmark prices with a 22-carat reference and lower purities converted down. IIFL Finance follows this assay-based process for its Gold Loan, subject to eligibility, so the grandmother's unmarked bangles carry the same borrowing power their tested purity earns, and they return home on repayment.
What Happens if a Jeweller Sells Non-Hallmarked Gold?
This is where the law's teeth sit, and they bite the trade alone. A jeweller selling un-hallmarked or falsely marked gold jewellery in a mandatory district faces penalties under the BIS Act, 2016: a fine of up to five times the value of the goods, imprisonment of up to one year, or both, with BIS running enforcement actions against violators, more than thirty in the 2025-26 financial year alone. Consumers face no penalty for owning, wearing or selling their old jewellery, ever. The rules also protect the buyer of hallmarked gold that falls short: where a hallmarked article tests below its marked purity, the buyer is entitled to compensation of twice the value difference plus testing charges under the BIS Rules, 2018.
Conclusion
The box of unmarked gold in the cupboard is not a legal problem; it never was. It is family wealth waiting on a decision: leave it as it is, perfectly lawfully; carry it to an Assaying and Hallmarking Centre for the modern stamp; sell or exchange it at a jeweller on assayed value; or pledge it with a regulated lender, where its tested purity, not its missing stamp, sets its worth. Whatever the choice, the same three habits protect it, honest testing, written valuations, and papers filed where the family can find them. The hallmark regime exists to discipline sellers. Owners were always free.
Frequently Asked Questions
Can I legally keep jewellery that has no hallmark?
Yes, without any restriction or time limit. The mandatory hallmarking rules, now covering 380 districts, bind jewellers at the point of sale; they impose no obligation on consumers to hallmark, register or declare the gold they own. Jewellery bought before June 2021, inherited pieces, and items from exempt categories are all perfectly lawful to keep, wear and pass on. If you ever want the modern stamp for documentation purposes, a BIS-recognised Assaying and Hallmarking Centre can test and mark old pieces for a small charge.
Can I sell non-hallmarked gold jewellery in India?
Yes. BIS has stated explicitly that consumers can sell old un-hallmarked jewellery to jewellers, who may buy it back without restriction and must hallmark it, or melt and remake it, before reselling. You are paid on assayed purity and net weight at the prevailing rate, not on the presence of a stamp. Practical tip: collect quotes from two or three jewellers before selling, since testing methods, deductions for stones and wastage, and offered rates differ noticeably between buyers.
How do I find a BIS hallmark centre near me?
Use the BIS website's list of recognised Assaying and Hallmarking Centres, searchable by state and district, or the BIS CARE app, which also verifies HUID codes on already-hallmarked pieces. There are several hundred AHCs operating across the country, concentrated in jewellery trading hubs. Many jewellers will also send your articles to an AHC on your behalf if visiting one directly is inconvenient. Carry identification, expect a modest per-article testing and marking charge, and keep the receipt with your jewellery records.
Can I get a gold loan against jewellery that has no hallmark?
Yes. Lenders do not require a hallmark, because RBI's 2025 directions oblige them to assay every pledged article anyway, with you present, and to issue a certificate recording purity, gross and net weight, deductions and value. The loan is then sanctioned within loan-to-value caps of 85% up to INR 2.5 lakh, 80% up to INR 5 lakh and 75% above, at prevailing benchmark prices. IIFL Finance offers its Gold Loan through this process, subject to eligibility, and the jewellery is returned on full repayment.
Is antique jewellery exempt from the hallmarking requirement?
For you as the owner, the question never arises: consumer-held jewellery of any age needs no hallmark. On the trade side, categories such as kundan, polki and jadau pieces, articles under 2 grams, and gold watches are exempt from mandatory marking, and jewellers buying antique pieces from consumers handle any hallmarking obligation themselves before resale. If you hold valuable old pieces, a written purity assessment and photographs kept with your records serve you better than a hallmark, for insurance, resale and pledging alike.
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
