Dear kannanmv
Excellent reply !!!
One of the best, logical and correct answers that I have seen recently.
Such answers are the hallmark of an adept and experienced HR professional.
I am quoting the most relevant points of your post.
In addition to the ones given by you; I would also like to add few other points :
It is not always possible or PRUDENT, to pay the full and final payments as normal salary; since, generally the data is PULLED OUT from the Current Employee Salary Sheet/Database.
This is IMPORTANT so as to prevent automatic payment of salary, by mistake, in subsequent months.
Also, name is also STRUCK OFF from the Employees Rolls.
Moreover, such procedures are helpful since there would be no other opportunity (like next month's salary in case of Current Enployees) to adjust any last moment leave/absences undertaken.