RBI's Optimistic about India

The RBI has revised the repo rate upwards by 0.25%. On the other hand the reverse repo rate (rate at which banks lend to RBI) has been hiked by 0.5%.
This means that the RBI wishes to persuade banks to borrow less from it and instead keep more money with the RBI. 

The obvious impact of this will be in the form of liquidity being sucked out from the banking system. 

One notable factor in this review is the non mention of fiscal deficit. The bumper 3G telecom auctions and fuel price hikes seem to have completely addressed that concern. 

Thus, while the RBI's tone seemed to be far more optimistic on the domestic scenario, inflation stuck out as the grey area.