10C
Delhi
Monday, January 25, 2021

Only purchase of jewellery above Rs 2 lakh needs mandatory KYC

- Advertisement -

RBI adds glitter to gold, allows higher loans against jewelleryNew Delhi, Jan 9 (IANS): Department of Revenue (DoR) has clarified that 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 a mandatory KYC document.

Sources said that the notification issued under (Prevention of Money Laundering) PML Act, 2002, on December 28, 2020 is a requirement of FATF Dealers in Precious Metals and Precious Stones (DPMS) to carry out KYC and Customer Due Diligence only when they conduct cash transactions above Rs 10 lakh.

READ ALSO:  Bright future for India in gems, jewellery trade amid US-China trade war

This is a requirement of FATF (Financial Action Task Force) – the global money laundering and terrorist financing overseer which as the inter-governmental body sets international standards aimed to prevent illegal activities on terror funding and money laundering.

One of the recommendations requires DPMS sector to fulfil obligations of Customer Due Diligence (CDD) when they conduct cash transactions above a certain limit (USD/EUR 15,000).

India is a member of FATF since 2010.

READ ALSO:  Govt to give discount to investors using digital mode under gold bond scheme

DoR sources said the contention that any purchase, even if below Rs 2 lakh, of gold, silver, jewellery or precious gems and stones in cash require KYC are baseless.

Sources said that since in India, cash transactions above Rs 2 lakh is not allowed under section 269ST of Income-tax Act, 1961, dealers not receiving cash more than Rs 2 lakh in compliance with the existing provisions of the Income-tax Act will not be covered under this notification.

India Updates
India Updates is an independent news & Information website. Follow us for regular updates on News and Information.

Related News

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Trending Topics In India

Covid 19 India Updates

Trending News In India

Trending Showbiz

Trending Sports

Latest Trending News In India

Danish film ‘Into the Darkness’ wins Golden Peacock award at IFFI

Panaji, Jan 24 (IANS) Danish film "Into the Darkness" won the prestigious Golden Peacock award for the "Best Film" at the 51st International Film...

Logistics players expect working capital package in Budget

New Delhi, Jan 24 (IANS): The logistics industry which has been impacted by the pandemic expects the upcoming Union Budget to announce a working capital...

CAIT seeks action against Amazon, Zomato for ‘daylight robbery’

New Delhi, Jan 24 (IANS) The Confederation of All India Traders (CAIT) in a communication sent to Union Commerce Minister Piyush Goyal demanded immediate...

Textile body seeks customs duty hike on man-made yarns in Budget

New Delhi, Jan 24 (IANS) The Northern India Textile Mills' Association (NITMA) has urged the government to raise customs duty on man-made yarns to...