In the recent Budget, the Finance Minister made a few announcements intended to put the huge stock of gold available in the country to productive use as well as reduce the adverse impact of gold imports on the current account deficit. These included a gold monetisation scheme, developing a sovereign gold bond, and Indian-made gold coins.

India lacks the technological infrastructure to reliably ascertain the purity of gold. This impedes monetisation efforts.
It is likely that it will take considerable time to put the architecture in place.