The move is estimated to result in Rs 1.45 lakh crore in revenue loss for the government during 2019-20.
RBI and other regulators are looking at financial at it holistically, he said when asked about stress in the financial sector.
The real estate sector in India has been hit by a severe liquidity crunch this year after a series of debt defaults by NBFC.
Centre okays rescue package for ailing real estate sector.
The fund will finance 1,600 stalled housing projects comprising 4.58 lakh housing units across India, said FM Sitharaman.
India has jumped 14 places to rank 63rd in the World Bank's ease of doing business ranking index and the country aims to be within 50.
Bankruptcy law of India which seeks to consolidate the existing framework by creating a single law for insolvency and bankruptcy.
She assured international investors at an interaction session that the government was continuously working to bring reforms.
FM said that banks have been asked to provide bill discounting facility to the MSME sector against payments due from the large corporates.
The depositors had gathered outside the BJP's office here ahead of FM Nirmala Sitharaman's scheduled press interaction.