currently put off by the 500 gram minimum requirement. Offering higher interest rates could also draw out gold stashed in the country's temples. South India's Tirupati temple, considered one of the world's richest, is estimated to hold gold worth up to $80 billion.
Gold is considered auspicious as a gift or offering at religious festivals in India and forms an essential part of a bride's dowry.
"The biggest avenue the government has to monetise gold is the gold deposit scheme," said Shekhar Bhandari, executive vice president of treasury at Kotak Mahindra Bank. "It has the maximum potential and (encourages) recurring behaviour."
India has taken multiple steps this year to curb imports of gold, its second-biggest import after oil, including raising duty three times to 10 percent.
The rupee, the worst-performing emerging market currency in Asia this year, rebounded from a record low on Thursday after the RBI said it will provide dollars directly to state oil companies to shore up the currency.
In comments published by The Hindu newspaper last week, David Gornall, chairman of the London Bullion Market Association, said India could raise $23 billion by swapping gold for a payable currency for a period of its choice, while remaining the long-term holder of the gold.