<h1>RBI Requires Banks to Boost Rural Branches, Allocate 25% to Unbanked Areas by March 2012 for Financial Inclusion.</h1> The Reserve Bank of India has mandated scheduled commercial banks to increase banking penetration in rural areas by opening more branches in unbanked rural centers. Banks must allocate at least 25% of their new branches to Tier 5 and Tier 6 rural centers, aiming to cover 72,800 villages with populations over 2,000 by March 2012. While banks can open branches in Tier 3 to Tier 6 centers without prior RBI approval, opening branches in Tier 1 and Tier 2 centers requires authorization. Incentives are provided for opening branches in underbanked districts, enhancing financial inclusion and customer service.