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.