A Study of Financial Inclusion through MGNREGA in Mysuru

Abstract

This study investigates the extent to which the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) promotes the financial inclusion of rural populations. All individuals must have access to inexpensive financial services in order to combat poverty and foster inclusive economic growth. This study, which uses a mixed-methods research approach, looks at how MGNREGA has affected indices of financial inclusion include access to formal financial institutions, saving habits, credit availability, and use of digital financial services. The research blends qualitative interviews and focus group discussions held in specific rural locations with quantitative analysis of secondary data from national-level surveys and programme reports. Taking into account socioeconomic determinants, geographic variances, and other pertinent variables, the quantitative study examines the relationship between MGNREGA participation and financial inclusion outcomes. Utilising econometric models and statistical techniques, the causal relationship between MGNREGA and financial inclusion metrics is assessed. Based on their opinions and personal experiences, the study's qualitative section explores how MGNREGA participants see their journey towards financial inclusion.The study analyses the socioeconomic effects of MGNREGA, identifies obstacles to financial inclusion, and looks at how MGNREGA might improve financial literacy and empowerment among rural households through in-depth interviews and focus group discussions. The results of this study will shed important light on how well MGNREGA works as a driver of financial inclusion in rural areas. The study will contribute to the body of knowledge by offering policymakers, financial institutions, and programme implementers evidence-based guidance on how to leverage MGNREGA for better financial inclusion results. Through broad financial inclusion projects funded by MGNREGA, the study's ultimate goal is to promote inclusive economic growth and increase the standard of living in excluded areas.