Revenue department clarifies KYC requirements for gold, silver purchases above Rs 2 lakh

No new KYC disclosures have been mandated for cash purchase of gold, silver or precious gems and stones and only high-value cash transactions continue to require the filing of documents such as income tax PAN or biometric ID Aadhaar, according to The Economic Times.
 
The Department of Revenue clarifying to a December 28, 2020 notification said cash purchase of jewellery, bullion and precious gems and stones of value more than Rs 2 lakh is not allowed without KYC in the country for the past few years. 
 
The notification issued under PML Act, 2002 on December 28 stated that only persons or entities buying gold, silver, jewellery or precious stones 'in cash transactions' worth Rs 10 lakh or above need to fill know your customer or KYC documents. 
 
This is a requirement of FATF (Financial Action Task Force) -- the global money laundering and terrorist financing overseer, they said. 
 
Since in India, cash purchase of jewellery above Rs 2 lakh is not allowed without KYC, so no new category is created under this notification. However, it is a requirement to be fulfilled under FATF, they said.
 

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