This study delves into the interplay between financial development and multidimensional poverty in the tribal abundant district of Madhya Pradesh, India. Utilizing a deprivation-level calculation, we have classified each household into two groups: those considered as poor and those categorized as non-poor. Financial development is proxied by holding bank accounts, the frequency of bank account utilization and using ATM and NET banking facilities. Employing the probit model estimation technique, this study unveils a pivotal link between financial development and the reduction of multidimensional poverty. The findings of this study demonstrate that government initiatives aimed at enhancing financial inclusion through measures such as facilitating bank account access and offering ATM and NET banking services play a constructive role in diminishing various dimensions of poverty. The compelling findings of this study underscore the transformative power of financial development in uplifting marginalized rural tribal populations, shedding light on a path towards alleviating multidimensional poverty and fostering inclusive development.
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