The Modi government has proposed that the RBI board draft regulations that will enable it to set up committees to monitor tasks such as financial stability, monetary policy transmission and foreign exchange management.

RBI has paid over Rs 50,000 crore every year with the exception of demonetisation year, when its income fell and expenditures rose because of printing of notes etc.

There have been enough pointers since the Budget announcements in February to show that the government's finances are perhaps not in a great shape.

With global crude prices remaining elevated, the rupee is likely to be under pressure, and may touch the 76 levels against the US currency over the next three months.

In a letter to Prime Minister Narendra Modi, SJM alleged that the payment of royalty and technical fees to foreign companies is one of the key reasons for rupee depreciation.

RBI Deputy Governor Viral Acharya compared government's 'myopic' economic policies to a T20 cricket match, in contrast to the long-term planning of a central bank, which he called a Test match.

Under the arrangement, India can acquire dollars from Japan in exchange for rupees while Japan can seek dollars from India in exchange for the yen.

The RBI always has had its disagreements with the government, mostly in private and rarely in public, when it comes to its autonomy in setting the monetary policy, regulating banks, managing the rupee value in foreign exchange market, and even debt management function.

Forex reserves in the first week of 2018 stood at $411 billion, representing a fall of 4.05 per cent as per the latest forex figures disclosed by the RBI.