Outgoing Reserve Bank of India (RBI) governor Subbarao has blamed the government's policies for constrained central bank's monetary policy as well as the rupee depreciation.

In his last public address, at the 10th Nani Palkhivala memorial lecture, Subbarao said the government adopted a very loose fiscal policy between 2009 and 2012 that constrained the central bank's monetary policy.

Taking a direct dig at P Chidambaram, Subbarao said that the union finance minister had said that if the government had to walk alone to face the economic challenges, it would walk alone; and stressed that a central bank existed.

Speaking on the topic, he said, "I do hope Chidambaram will one day say: `I am often frustrated by RBI, so frustrated that I want to go for a walk, even if I have to walk alone. But thank God, the Reserve Bank exists'."

Responding to the comments, Chidambaram said that he himself recently said that the policies taken between 2009 and 2011 - a period when President Pranab Mukherjee was the finance minister - paved way for the current financial issues.

The rupee recently slipped to its record low of 68.83 against the US dollar; while the country's current account deficit (CAD) and inflation are considerably higher than the government's comfortable limits.