The Cabinet gave its nod to introduction of the Sovereign Gold Bonds Scheme. Briefing media after the Cabinet meeting, Finance Minister Arun Jaitley said, the Bonds will be issued with a rate of interest to be decided by Government and calculated on value at the time of investment.<br/><br/>Mr Jaitley said, the scheme will reduce demand for physical gold by shifting a part of estimated 300 tonnes per annum for investment into gold bonds. <br/><br/>The Minister said, tenor of Gold Bond could be for minimum of five to seven years to protect investors from medium term volatility in gold prices.<br/><br/>The Cabinet also approved introduction of Gold Monetization Schemes, GMS to reduce country's reliance on the import of gold and put it to productive use.