One of the biggest barriers to getting into bitcoins is the tedious process of going through several payment processors to actually get the bitcoins... Besides cash itself, the other alternative I can see would be money orders where you know that you can cash it without having to worry about check fraud and waiting for it to clear.
So, why don't more exchanges have this as an option?
Some easier options are been introduced by various exchanges so it really goes much easy.
We can actually cashout btc to directly INR without any hesitation so that is not actually the problem.
Some exchanges like wazirx do have P2P trading system which really makes it much easy for converting some bitcoins to cash whenever needed.
We still look forward for some more east ways. Your method is not completely understandable to me.