China will lower the reserve requirement ratio (RRR) for all financial institutions by one percentage point starting Monday, the People's Bank of China announced on Sunday.

An extra one-percentage RRR cut will be given to commercial banks for agricultural services and an additional reduction of two percentage points to the Agricultural Development Bank of China.

The central bank will further lower RRR by 0.5 percentage point for eligible banks that lend a certain amount of loans to agricultural borrowers or small and micro businesses.