The President hosted a lunch for the Prime Minister, the first since Modi was sworn-in on May 26, sources said.
The luncheon meeting came ahead of the budget session beginning on July 7 and also ahead of Modi's visit to Brazil for attending the BRICS Summit later this month.
The Mukherjee-Modi meeting also assumes significance in the context of the government's nudging some Governors appointed during UPA rule to quit. Four of them have already resigned.
After the lunch, Modi took a tour of the majestic Rashtrapati Bhavan.
He visited Durbar Hall and other parts of the Bhavan with Omita Paul, Secretary to the President, briefing him on the historical background of the places.