In parts of the country where such EBT has already taken off, the results are impressive and the experience of both payers and recipients extremely satisfying. 7. There are enormous benefits at the aggregate level too.
The first and more obvious benefit is that financial inclusion provides an avenue for bringing the savings of the poor into the formal financial intermediation system and channel them into investment. Second, the large number of low cost deposits will offer banks an opportunity to reduce their dependence on bulk deposits and help them to better manage both liquidity risks and asset-liability mismatches.