The ongoing confrontation between the government and RBI has waded into uncharted territory.

This is the second consecutive year that India has been recognised as a top improver. India is the only South Asian country to achieve this distinction two years in a row, and only nine other countries have accomplished this since 2011.

The Section 7 of the RBI Act empowers the government to give directions to the central bank on matters of public interest.

The government said the functioning of RBI has to be \"guided by public interest and the requirements of the Indian economy\".

The note submitted by Rajan on September 6, 2018 to a parliamentary committee mentioned that he had asked the PMO to act against a list of major defaulters.

The currency opened 23 paise lower at 73.90 per dollar compared to yesterday's close of 73.67 level to the dollar. But hit the 74 level within half hour of trade, down 0.44% from its previous close.

MP Subramanian Swamy showed his support for Patel and said he must be persuaded to stay.

The presence of S. Gurumurthy and Satish Marathe in its central board may not be sitting well with RBI.

The mounting differences between the RBI and the Centre, and the public war of words has government officials worried about the country's image taking a hit as well as spillover consequences for the markets.

The real blame game began with the $2 billion PNB-Nirav Modi scam when the RBI was blamed for being a sleepy regulator while the fugitive perpetrated the fraud for 7 long years under its nose.