Cabinet approves launch of sovereign gold bond - source

NEW DELHI (Reuters) - The cabinet on Wednesday cleared the launch of a sovereign gold bond as an alternative to buying the metal, a government source said, a move that seeks to trim demand for the metal that the country imports heavily.

Prime Minister Narendra Modi's cabinet also approved a so-called gold monetisation plan to mobilise tonnes of the metal stored in households and temples.

More details were expected from a news conference after the cabinet meeting.

(Reporting by Nigam Prusty; Writing by Krishna N. Das; Editing by Douglas Busvine)