Government also immensely benefits by way of efficient and leakage-proof transfer of vast amounts of welfare benefits to the targeted, disadvantaged groups of population. Concerns relating to AML/CFT get addressed through financial inclusion efforts without compromising the basic KYC requirements.
From the perspective of the Reserve Bank of India, greater participation by all the economic agents in the financial system makes monetary policy more effective and, thereby, enhancing the prospects of non-inflationary  BIS central bankers’ speeches  1  growth. It also reduces reliance on the informal sector which tends to dent the impact of monetary policy decisions.