He claimed that the government and the RBI were heading for "confrontation".
Ahead of the RBI Board meeting, Congress leader P Chidambaram on Sunday accused that the central government was determined to "capture" the bank to gain control of its Rs 9 lakh crore reserve.
In a series of tweets, the former finance minister also claimed that the government and the Reserve Bank of India (RBI) were heading for "confrontation" at a bank board meeting on Monday.
"The government is determined to" catch "the RBI to gain control of reserves. The other thing called disagreement is only smokescreen (sic)," he said on the Twitter microblogging site.
Senior Congress leaders said, "There is no place in the world that is a central bank managed by a board company. To show that private entrepreneurs will direct the governor is an irrational idea."
"November 19 will be a day of calculation for the independence of the central bank and the Indian economy," he tweeted.
The RBI has Rs 9,59 lakh crore of large reserves and the government, if the report is credible, wants the central bank to part with one third of the funds – a problem that along with the reduced norms for weak banks and increased liquidity has brought both of them at odds in recent weeks.
The government on November 9 said it had discussed the "right" size of capital reserves that the central bank had to defend but was refused to request massive capital transfers from the RBI. Secretary of Economic Affairs Subhash Chandra Garg has also clarified that the government is not in dire need of funds and that there is no proposal to ask the RBI to transfer Rs 3.6 lakh crore.
"There is no proposal to ask the RBI to transfer (Rs) 3.6 or (Rs) 1 lakh crore, as speculated," he said. "Government FD (fiscal deficit) in 2013-14 is 5.1%. From 2014-15 onwards, the government has succeeded in substantially reducing it. We will end TA 2018-19 with FDs of 3.3%. The government has actually the previous (Rs) 70,000 crore from the market loan budgeted this year. "
Mr Garg said the only proposal "in the discussion was to improve the right economic capital framework of the RBI".
The economic capital framework refers to the risk capital required by the central bank taking into account the different risks.