When Raghuram Rajan took over as the Reserve Bank of India Governor in September last year, many in the finance ministry and the central bank had hoped to reset the relationship that had taken a few hard knocks during D Subbarao's tenure.
One of the decisions taken at the highest level of the government was that the ministry would not make any public statement post the monetary policy announcements by the RBI. And expectations ran high that Rajan will be able to bridge the growing chasm between the two.
The honeymoon, however, seems to be finally over.
Image: Our cartoonist Satish Acharya's take on the Chidambaram-Rajan equation in the early days of Rajan's governorship.
Text: Shyamal Majumdar, Business Standard