New Delhi, Sept. 9 -- The Reserve Bank of India may not need to raise the cash reserve ratio (CRR) in the near term as surplus liquidity in the banking system is expected to moderate through FY27, according to a research report by Union Bank of India (UBI).

Surplus liquidity had risen to around Rs 10.36 lakh crore by Monday following a strong response to the RBI's special foreign-currency mobilisation programme, which attracted USD 136.38 billion by the end of August, ANI reported, citing the report.

While the inflows strengthened India's external buffers and added to banks' deposit resources, forex swaps also released a corresponding amount of rupee liquidity into the banking system, creating a policy challenge for the RBI.

Flexible T...