<h1>Union Cabinet Approves Sovereign Gold Bonds Scheme to Curb Physical Gold Demand and Manage India's Current Account Deficit.</h1> The Union Cabinet, led by the Prime Minister, approved the Sovereign Gold Bonds Scheme to reduce the demand for physical gold and manage India's Current Account Deficit. The scheme allows residents to invest in gold bonds instead of physical gold, with the bonds issued by the Reserve Bank of India on behalf of the government. These bonds, which have a sovereign guarantee, are denominated in grams of gold and offer interest rates based on market conditions. They can be used as loan collateral, traded on exchanges, and are available in demat or paper form. The scheme aims to lower government borrowing costs, with savings directed to a Gold Reserve Fund.