Jewellery sales decline by half in four weeks on PMLA extension

Jewellers say the limit of Rs 50,000 too low, will meet Commerce Ministry official on Friday

Jewellery sales have declined by around 50 per cent over the past four weeks, due to consumers’ deferring of orders amid fear of future action against them under the Prevention of Money Laundering Act (PMLA).

The government recently extended PMLA to the jewellery sector. This restricts cash transactions beyond Rs 50,000 without a Know Your Customer (KYC) declaration. This regulation, however, contradicts the income tax rule which permits cash transactions up to Rs 2,00,000 without a KYC requirement.

A delegation comprising bullion dealers and jewellers across the country is scheduled to meet commerce ministry officials on Friday to apprise them of the