What was the logic behind the gold monetization scheme (GMS)?

The government launched 3 gold related schemes with a lot of fanfare. The Gold Monetisation scheme was meant to encourage the households to bring out their stash of gold and introduce it into the productive mainstream. It had a strong logic. Indian households are estimated to possess close to 22,000 tonnes of gold valued at $850 million at current market prices. It will provide a productive avenue for the idle gold and also reduce India’s dependence on gold imports. The gold bond scheme was supposed to encourage the people to hold gold in demat form rather in physical form. There is also an additional Gold Coin scheme which is more peripheral in nature. In the last few years, the gold monetization scheme has hardly taken off as very few persons were actually willing to give up their family gold and convert into bars.