Explained: Why India Wants to Make Silver Hallmarking Mandatory

After fixing gold, the government is turning its attention to silver. Buoyed by strong uptake under the voluntary regime and rising concerns over purity fraud, India is preparing to make silver hallmarking mandatory, using the digital HUID system that has already transformed the gold market.

What is the government planning?

The government is preparing to make silver hallmarking compulsory, following the success of mandatory gold hallmarking. Union Consumer Affairs Minister Pralhad Joshi said over 20 lakh silver articles have already been hallmarked under the voluntary HUID system, indicating readiness for a full rollout.

Why is this move happening now?

Two factors are driving urgency. First, rising silver prices, which are trading near record levels, increasing consumer risk. Second, widespread purity fraud, especially in unorganised and rural markets. With silver increasingly used for jewellery, utensils, coins and gifting, the government sees certification as essential consumer protection.

What exactly is the HUID system?

HUID (Hallmark Unique Identification) is a six-digit alphanumeric code laser-marked on each silver article. It links the product to a central digital database, enabling end-to-end traceability.

Consumers can instantly verify authenticity using the BIS CARE mobile app, available in 12 languages.

How does this system prevent fraud?

Earlier, fake hallmarking was easy because there was no verification mechanism. HUID eliminates this by linking each item to purity grade, testing centre and jeweller details, allowing instant digital verification, and making counterfeiting traceable and punishable. This closes loopholes that allowed lower-purity silver to be sold as higher-grade.

How serious is the counterfeit problem in silver?

Extremely serious. Officials have acknowledged that many consumers—particularly in rural India—were routinely cheated. Before gold hallmarking became mandatory in 2021, such practices were endemic. Since then, over 40 crore gold articles have been hallmarked and registered jewellers have increased nearly six-fold, demonstrating how regulation can clean up the market.

What is hallmarking and how does it work for silver?

Hallmarking is an official purity certification process conducted by BIS-recognised centres. For silver, BIS recognises seven purity grades ranging from 800 to 999. Each hallmarked item carries BIS standard mark (with “SILVER”), purity grade, and unique HUID code. The most common grade is 925 (sterling silver).

How does India compare globally?

Most developed markets already mandate precious metal certification. The UK introduced hallmarking as early as 1300 AD, and Europe enforces strict assay regimes. India’s system goes a step further by enabling digital, instant verification, making it more technologically advanced than many traditional European systems.

When will mandatory silver hallmarking begin?

BIS officials have indicated a three-to-six-month window for implementation. Voluntary hallmarking began on September 1, 2025, and stakeholder consultations have largely supported a shift to compulsory certification. The rollout will be phased to minimise disruption for jewellers.

Is the testing infrastructure ready?

India currently has around 230 Assaying and Hallmarking Centres for silver across 87 districts. In FY25 alone, over 3.2 million silver articles were hallmarked. Anklets dominate volumes, mainly in 800 purity, while 800 and 925 grades together account for nearly 90% of certified items.

What challenges remain?

Small jewellers who melt silver to create products may face compliance costs related to registration, testing and inventory management. Penalties for selling unhallmarked silver could include fines and seizure of goods. To address this, BIS is expanding infrastructure and conducting awareness drives to ensure the policy reaches “every nook and corner” of the country.

Why does this matter for consumers?

Mandatory hallmarking shifts the balance of power to buyers. As with gold, it promises greater trust, transparent pricing, and reduced fraud. If implemented effectively, silver hallmarking could fundamentally reshape India’s silver market, just as gold hallmarking already has.

(yMedia is the content partner for this story)