New Delhi, Sept. 9 -- The Reserve Bank of India may not need to raise the cash reserve ratio (CRR) in the immediate term as the banking system's surplus liquidity is expected to moderate through FY27, with the central bank able to use more flexible tools such as variable rate reverse repos and forex swaps, noted a research report by Union Bank of India.

The report said banking-system surplus liquidity had risen to around Rs 10.36 lakh crore by Monday, following the strong response to the RBI's special foreign-currency mobilisation programme, which brought in USD 136.38 billion by the end of August.

While the inflows strengthened India's external buffers and provided banks with additional deposit resources, the forex swaps also released ...