By the end of 2020, the policy rate was cut by another 175 bps, bringing the cumulative reduction to 200 bps; from 4 percent to a record low of 2 percent. Similarly, the reserve requirement ratio (RRR) was reduced to increase the volume of loanable funds in the system.
For universal and commercial banks as well as non-bank financial institutions with quasi-banking functions, the RRR was cut from 14 percent to 12 percent, while the RRR for thrift banks was cut from 4 percent to 3 percent and from 3 percent to 2 percent for rural/cooperative banks.