Abstract
Financial inclusion (FI) relates to the access and availability of financial services to society, especially in low-income groups. FI is pivotal in achieving 7 of the 17 Sustainable Development Goals (SDGs). This paper explores the level of FI in the rural areas of Maharashtra and measures the impact of FI on the social conditions of Self-Help Groups (SHGs) prevalent in these areas. The study is based on a 424 SHGs survey conducted in the Pune, Thane, and Palghar districts of Maharashtra, India. The impact of FI on SHGs is evaluated using a Structural Equation Model (SEM). The results of the study show that physical banking services, Business Facilitators (BFs), and Business Correspondents (BCs) improve the social conditions of rural SHGs. Additionally, BCs and BFs mediate the relationship between physical banking services and social conditions. The study also reveals an insignificant association between BCs and BFs and insurance services. The present study highlights the importance of increasing the awareness of insurance policies through financial literacy programs and making timely availability and accessibility of BCs and BFs to enhance financial inclusion in rural areas.
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