RBI vs Government in 10 points: After Finance Ministry issues statement, RBI Governor Urjit Patel calls for board meeting. Here's all you need to know

Amid reports of a rift between the Central government and the Reserve Bank of India, as well as frenetic speculation that RBI Governor Urjit Patel may resign from his post, the Ministry of Finance has issued a statement, following which Patel has also acted.

Here are ten things to know:

1. (From Finance Ministry's statement, on the topic of RBI's autonomy:) "The autonomy for the Central Bank, within the framework of the RBI Act, is an essential and accepted governance requirement. Governments in India have nurtured and respected this."

2. (From Finance Ministry's statement:) "Both the Government and the Central Bank, in their functioning, have to be guided by public interest and the requirements of the Indian economy."

3. (From Finance Ministry's statement:) "For the purpose (public interest and requirements of Indian economy), extensive consultations on several issued take place between the Government and RBI from time to time. This is equally true of all other regulators. Government of India has never made public the subject matter of those consultations. Only the final decisions are communicated. The government, through these consultations, places its assessment on issues and suggests possible solutions. The government will continue to do so."

Here is the statement: 

4. Minutes after the Finance Ministry's statement, as per sources, the RBI Governor has called for a meeting of the central bank's board on November 19 (presumably allaying fears that he is on the verge of resigning)

The statement and call for meeting come against the backdrop of a series of recent developments including:

5. The Finance Minister publicly questioning the central bank for allegedly failing to control indiscriminate bank lending during 2008-2014, which culminated in Indian banks being encumbered by almost $150 billion in Non-performing Assets (NPAs), as the RBI's asset quality review revealed.

6. A meeting of the Financial Stability and Development Council (FSDC) on Tuesday at which RBI Governor Urjit Patel and Finance Minister Arun Jaitley were present. The meeting was held right after the Finance Minister's remarks, mentioned in the point above.

7. An earlier statement by RBI Deputy Governor Viral Acharya (who has regularly addressed the NPA issue in the RBI's bi-monthly reviews) warning of "potentially catastrophic" ramifications to undermining the central bank's independence. Acharya's words, remarkably direct in terms of the usual 'read-between-the-lines' language generally used by the RBI's top brass on policy matters and commentary, also came with an example from Argentina where the government and central bank had collided.

8. Reports claiming a tussle between the RBI and government over the former's reserves, and talk of setting up a new payments regulator, potentially stepping on the RBI's toes.

9. Recent reports (and potential speculation) that the government has(may) invoked(invoke) Section 7 of the RBI Act under which the government may, "from time to time give such directions to the bank as it may, after consultation with the governor of the bank, consider necessary in the public interest".

10. Miscellaneous reports regarding the regular operational points of contention between the RBI and the government, including key policy rates.

(11. A potentially related impending development due on Wednesday: The Uday Kotak-led IL&FS Board submitting its roadmap for the defaulting infrastructure financier to the NCLT.)

Update at 14:21 pm: Finance Minister Arun Jaitley will address a news briefing at 6:30 pm on Wednesday