Power corridors are abuzz with talks of a widening rift between the Reserve Bank of India and the government and the possibility of RBI governor Urjit Patel resigning looms large.

It is rumoured that there has been an irreversible breakdown of trust between Patel and the government. RBI officials, though, are staying completely away from making any comment to the press.

The rift between the Govt and RBI surfaced after the RBI’s Deputy Guv Viral Acharya's candid speech that he delivered as the Chief Guest at A D Shroff Memorial Lecture in Mumbai on Friday. In his speech, Acharya warned the govt of catastrophic consequences if RBI's independence was curbed. Acharya compared govt'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.

FinMin Arun Jaitley and RBI Governor came face-to-face at a meeting of a financial stability body yesterday.