"New and stable financial products that are lucrative enough for the households to shift their savings away from gold should be provided," said the Ficci survey.
Further, it added, the government should come up with more financial products like Inflation Indexed Bonds (IIBs), Gold Accumulation Plan (GAP), Gold ETFs to normalise the demand for gold.
Regarding the outlook for the provisioning requirements for non-performing (NPAs) in the banking sector in the current year, the survey results show that provisioning requirement of NPAs is likely to increase by end of FY14.
It said: "If the current weak economic situation persists it will have a significant impact on the asset quality of the banks which will substantially increase the provisioning requirement in the current financial year. Besides bad loans, restructured advances also pose a risk to the banking system."
Moreover, NPAs will go up across a wide array of sectors, which include iron and steel, textiles, power generation, automobiles and ancillaries, telecom, aviation, construction, real estate, infrastructure, steel and cement, said the survey.