FINANCIAL LITERACY AND WOMEN EMPOWERMENT: ANALYZING THE ROLE OF SHGS AND MICROFINANCE IN CENTRAL INDIA

Abstract

Abstract: Financial literacy has emerged as a significant determinant of women's economic empowerment, particularly in developing economies such as India. Self-Help Groups (SHGs) and microfinance institutions have played a transformative role in enhancing financial inclusion among rural women by promoting savings, credit access, entrepreneurship, and financial decision-making. Central India, comprising states such as Madhya Pradesh and Chhattisgarh, has witnessed substantial growth in SHG movements under the National Rural Livelihood Mission (NRLM). This study examines the relationship between financial literacy, SHG participation, microfinance access, and women empowerment. The research adopts a descriptive analytical approach based on secondary data from NABARD, RBI, Ministry of Rural Development, and published literature. The findings indicate that financial literacy significantly improves women's income generation, household decision-making, entrepreneurial skills, and social participation. However, challenges such as inadequate digital literacy, low financial awareness, limited market access, and over-indebtedness remain significant barriers. The study concludes with policy recommendations aimed at strengthening financial education programs and enhancing the effectiveness of SHGs in promoting sustainable women empowerment. Keywords: Financial Literacy, Women Empowerment, Self-Help Groups, Microfinance, Financial Inclusion, Rural Development, Central India.