Rajan laid extra stress on the cash benefit transfers, saying "money liberates and empowers".

He also said profitability for banks is very crucial for the success of the scheme, and mentioned ideas like government paying the bank commission for transfers.

To prevent the hazard of people squandering the money on alcohol, etc, Rajan said the money could be transferred to the women of the family, who are generally better spenders.

Other aspects such as linking the transfers to conditions like children attending the school regularly too can be looked at, he said.

Acknowledging that a corrupt monitor will vitiate the entire effort, Rajan advocated that we should still go ahead with the efforts and look for automation on monitoring wherever possible.

Coming out against the hazard of transfers making one addictive, Rajan stressed the need to use cash transfers as a tool to build capabilities in education and health-care, rather than using the resources only for inessential consumption.

Still, if data on misspending emerges, we can look at alternatives such as giving some of the benefit in the form of electronic coupons which can be used by specified individual for a narrow purpose like food, education or health-care, Rajan said.

In the financial inclusion drive, RBI will play the role of enabler and undertake efforts like "to nudge" banks to offer all the basic products to address financial needs.

Rajan also said the central bank is looking at re-examining KYC norms, to simplify them. He also stated that RBI's efforts to open the payment banks and small local banks are directed at deepening the financial inclusion itself.

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