the government has long been recommending the transition to cashless payments. it is the banking system that helps the government, with full KYC, to control everyone's income and expenses.
Yes, governments always want full control over all of us. They just need to catch at all possible points where they can put tax and benefit from that. I guess this is an usual practice across all countries and this is the reason KYC norms are happening all around the world with similar updating. Before, in my country banks do ask KYC only when we start with them but now they do ask every six months or yearly once. I heard that is the practice in USA but now happens even in my country.