With the banks slowly realizing the potential business opportunity in financial inclusion and gearing up to penetrate the rural areas, , RBI came up with the idea of notional allocation of villages amongst banks, in order to ensure that the efforts of banks are not duplicated.
This was also with the objective of ensuring presence of at least one banking outlet in all the unbanked villages of the country. 30. In this direction, a phase-wise approach was adopted wherein SLBCs/DCCs were advised to identify unbanked villages with population more than 2000 and notionally allocate them amongst banks operating in the region.