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Allow only accredited gold refiners to make bars: IBJA

Nodal trade body India Bullion and Jewellers Association (IBJA) has requested the RBI to allow only those gold refiners accredited by NABL or BIS to make gold bars in the country. This is to rein in the supply of impure or unethically sourced gold, complaints of which have been rising, by unauthorised refiners, said IBJA. It will also lead to greater transparency in the trade.

NABL is a constituent board of the government led Quality Council of India, while BIS stands for Bureau of Indian Standards, which registers jewellers under its Hallmarking Scheme.

To drive home its point, IBJA in a letter to RBI governor Shaktikanta Das on Wednesday, said one of the reasons Sebi-regulated national commodity exchanges allowed delivery only of imported gold bars or bars made by LBMA approved refiners even after a decade of existence was their fear of bars being made by unregulated, unauthorised refiners. Indeed, metals and energy bourse MCXNSE -0.29 % specifies that 24 carat bars supplied by LBMA approved refiners or others specified by the exchange can only be delivered on its platform along with a quality certificate. “….We request you to completely ban the manufacturing of gold bars/mini gold bars by non-regulated, unauthorised refiners with immediate effect,” said the letter that ET has seen. “The stoppage of such gold bars will result in complete transparency as to the purity of gold, sourcing and accounting of gold in our country.

“This will also enable Indian gold bars being manufactured only by regulated NABL/BIS Refinery, which would be even accepted by commodity exchanges.”

There are more than 30 regulated NABL/BIS approved gold refineries, such as MMTC-Pamp and Chemmanur Gold Refinery, operating in domestic markets.

In the June quarter, consumer demand for jewellery was 168.6 tonnes while bar and coin demand was 44.5 tonnes, according to WGC. Meanwhile, gold as per IBJA’s closing rate hit a fresh high of ?40,129.83 on a weaker rupee.

Courtesy - Economic Times

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