Research and analysis
Indian Economy : RBI Pauses On Rates And Moves On Bank Licenses
No move on bank rate, but RBI approves some licenses
Documents
Details
As expected, the RBI kept rates on hold on the back of moderating inflation. Extended pause likely with lower inflation and sluggish growth. Cautious outlook for 2014-15, with growth likely to remain in the 5-6% range. In-principal approval for two firms, IDFC and Bandhan Financial Services, to set up banks also announced. A framework for on-tap and differentiated licensing is also expected, which would potentially benefit UK financial services.
Published 16 April 2014