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This research article examines the impact of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) on financial inclusion and savings behaviour in Chikkamagaluru district, Karnataka. By analysing384 household-level data, the research assesses changes in savings patterns, banking access, and financial independence before and after MGNREGA participation. The findings reveal a significant increase in household savings, with a 50.0% rise in savings levels between INR10,001-INR25,000 per year and a 59.3% decline in households reporting no savings after program participation. Additionally, bank account ownership increased from 58.3% to 92.7%, while access to formal credit rose by 150.7%, underscoring the scheme's role in financial inclusion. The independent sample t-test results indicate a highly significant improvement in household savings (p=0.000), financial inclusion (p=0.001), and access to credit (p=0.004) among participants compared to non-participants. Despite these positive outcomes, challenges such as limited rural banking infrastructure, procedural inefficiencies, and financial literacy gaps persist. The study recommends strengthening digital wage payments, enhancing financial literacy programs, and expanding rural banking accessibility through mobile banking and microfinance linkages. These insights highlight MGNREGA's potential in fostering sustainable financial empowerment and reducing economic vulnerability in rural India.