The Reserve Bank of India board meeting has begun amid an atmosphere of mistrust over what the central bank perceives to be government interference in its functioning.


The government has maintained it has no intention of forcing the RBI's hand to do its bidding, but the opposition has said the NDA regime intends to plough into the precious reserves of the central bank in election season.


Investors are awaiting cues from the meet. The Finance Ministry nominees and some independent directors are expected to take on Governor Urjit Patel and his team later in the day over issues ranging from micro, small and medium enterprises (MSME) credit to the central bank's reserves, though both sides are in favour of reaching a common ground.


The first sign of trouble came in October when reports alluded to the government's interest in Section 7 of the Reserve Bank of India Act or RBI Act, which empowers the centre to issue directions to the "lender of last resort" -- meaning the government could take charge of policy.