A lesson in bureaucratic lies and scams.

For many years India has been trying to paperize the nation's gold.  They've tried everything under the sun to get Indian citizens to hand over their gold and accept fake unbacked paper notes and promises instead.  But the Indian people have gotten fucked so many times in the past that they are not biting these days.

The Indian government is so desperate to incentivize people to stay in their fake money con that they are rapidly ping ponging between bad cop and good cop.  When playing bad cop, the government assumes all citizens are criminals and then takes extreme measures to make sure everyone is paying into their corrupt system.  The most recent bad cop move was to eliminate the 500 and 1000 Rupee notes in a sudden overnight move.  People were told to take any cash on hand to a processing center for conversion from the old fake money to new fake money.  During the processing process, anyone with more cash on hand than the government thought they should have would be charged with a crime like money laundering, tax evasion, etc.  And those who could not account for the cash they had on had without being accused simply had to try to spend it on the local economy as quickly as possible so that it would not expire worthless in their hands.

That kind of move is like poking your citizens in the eye with a sharp stick.  And I'm sure that the government made some money in the deal.  But at the same time, it made the people even more aware of the dire straits that its government is in.  You don't make moves like that unless there is a systemic risk.  And making that kind of move only pushed more of the people's wealth into money which the government cannot just cancel at a whim - gold and silver.

Now that government has wiped out the tax evaders and the money launderers, it has already blown through whatever it gained by that power plan and is back out looking for spare change under the couch cushions.  So now they are trotting out the fake good cop play.  In this article we see that the Indian government trying to trick the people into exchanging their gold with fake government paper promises so that the people can earn interest on the gold trade that would be happening with their stored gold.  The government is telling them to turn in their gold and benevolent government will smelt it and purify it and mark it for the benefit of the owner of said gold.

Read that article carefully because it has all the telltale signs of the typical elitist scam.  You promise something for nothing, but only if the victim will first give something of value up.  It's like the phone scams that tell you they will give you a free vacation if you only pay an upfront $200 fee that covers processing and taxes.  Of course, once you send the money in all you ever get back is a worthless fake certificate for a non-existent cruise or hotel stay.

Additionally, you obfuscate the point with 50 cent elite speak language which is the language of con men.  And in fact this is how all government scams work. Government cannot cheat the people without the people agreeing to it.  So government hides what it is doing using sophistry, doublespeak and just plain old flat out lies.

My translation is in red below:
Mumbai: India will hold a top ministerial meeting early this week on giving gold the status of an asset class, a move that seeks to reduce the dependence on imports by boosting the circulation of an estimated 25,000 tonnes of the metal lying locally in jewellery or coin forms. 
India will create a new legal scam which attempts to paperize gold for the purpose of stemming the rise of inflation by stealing as much of the 25000 tons of gold running around in the Indian economy as possible.

The status of an asset class would give Indians the opportunity to capitalise their gold and make it as liquid as the stock of a listed company. The government is working on having an India gold delivery standard, similar to gold that’s certified by the London Bullion Market Association (LBMA), the world’s standard setter for the metal. Residents holding gold jewellery or coins would be able to get these melted into 995 or 999 purity bars by accredited refiners, who would issue a certificate to them bearing the title of goods, purity and serial number embossed on the bars, which can be traced to their owner. 
This new scam will allow fools to exchange their physical gold for paper promises of gold which can then be held in a vault that is beyond public inspection for "security" reasons and then gambled with by others in order to turn a potential profit for the gamblers, some of which might trickle down by accident to the gold owner.  But don't worry, if you ever want your gold back you can request it and they will return it to you, just like Nixon returned the gold to those who held dollar.

The certificate will be transferable like a share certificate or a property deed. When the price rises, a resident can simply transfer the certificate and capitalise the gold, much like they do when a share price rises. S/he could also deposit the gold bars with banks under the Gold Monetisation Scheme and earn interest instead  .. 
Don't worry, your gold will be safe and sound.  Even though the government recently attacked its citizens with the surprise demonetization of 500 and 1000 Rs notes, they are here this time to help because they are just good people working for the Indian citizenry out of the goodness of their hearts.
This is such an obvious scam that only an idiot would participate. I mean, come on.  Your girlfriend cleans you out one day when you are at work and then a year later after she has spent it all she comes back wanting to make up and promising to be very lovey if you just give her all your gold.  She will of course count it for you and then give you a receipt and if you ever want it back, just ask!

That is the essence of what is happening here.  It's clear to me that Indian people love gold so much because they know their government is just as corrupt as a bucket of warm shit.  There is about zero chance that any significant number of people fall for this joke of a scam but as far as I am concerned those few who do fall for it are going to deserve the backstabbing they eventually receive for having believed in even one word that emits from the pie hole of corrupt big government.