The source, who was part of a think tank under former governor Raghuram Rajan, added that although Patel's deputy had hinted the RBI chief considered resigning, it wouldn't happen at the November 19 board meeting.
However, The Indian Express, while citing sources said that the RBI has rejected the proposal stating that such a move could have an adverse effect on the macroeconomic stability and with low capital, RBI could end up losing its credibility. They pertain to transfer of surplus funds, easing of NPA norms to kick start lending and support growth, and easing liquidity crisis facing non-banking finance companies (NBFCs), sources had said.More news: UK business figures call for vote on Brexit terms
"We will do everything to protect the interests of the economy", one of the members of the RBI central board told Reuters, noting the governor and his team would have to "explain, defend and justify" their decisions at the board meeting.
He also noted in his address to top industrialists that the Argentine government's meddling in its central bank's affairs in 2010 led to a market revolt and a surge in bond yields. "Protect the nation", he tweeted and also posted the report.
There are no free lunches with dividends, there is no Rs 3 lakh crore to give to the government.More news: Mysterious object spotted in solar system may have been an alien probe
It has also mandated banks to declare a delinquent borrower even if payments were overdue by a day.
While Mr Gandhi has accused the government of "destroying" institutions with its alleged strong arm tactics, differences between the government and RBI came out in public domain after a deputy governor raised concerns about the central bank's autonomy.
"We don't know whether the board will supersede the RBI in that case", said the source. "Patel and his team must recognise the period of an invisible RBI board is over", one of the New Delhi-based sources said, noting that the RBI will sooner or later have to fall in line.More news: Florida votes to restore ex-felons’ voting rights
Also emphasising on the important role of the RBI board in managing the standoff between the bank and the government, he said: "The role of the RBI board is not operational but to coach". The central bank is of the view that the use of its reserves will hurt the government's commitment to fiscal prudence. Additionally, at about 28%, the government feels that the RBI holds higher total capital as a percentage of its total assets when compared to other global central banks.