India struggles with high gold imports and unproductive household gold hoards. Past measures like increased import duties proved blunt, risking illegal channels. Earlier monetization schemes and sovereign gold bonds faced challenges, failing to significantly draw physical gold or impacting the exchequer. The author suggests RBI could leverage its e-rupee platform to tokenize gold deposits. This approach would allow households to trade digital coins, unlocking gold's value and addressing import pressures. Given gold's evolving role in financial security and RBI's trustworthiness, tokenization presents a promising, secure path to monetize India's substantial gold reserves productively.