Banking Accessibility, Service Satisfaction and Financial Literacy Among Self-Help Group Members: A Comparative Empirical Study Of Punjab and Haryana

Abstract

Self-Help Group (SHG)-bank linkage can expand formal financial access, but its effectiveness also depends on members' ability to obtain convenient services and use financial information. This comparative cross-sectional study examined two relationships among SHG members in Punjab and Haryana: the association between the frequency of banking accessibility problems and overall service satisfaction, and the association between the frequency of financial literacy training and self-rated financial literacy after joining an SHG. The state-wise dataset comprised 500 valid cases (Punjab, n=250; Haryana, n=250). Crosstabulations were standardised to report observed counts, expected counts and row percentages, and associations were tested with Pearson's Chi-square statistic. Accessibility problems were significantly associated with service satisfaction in Punjab (chi-square=58.039, df=16, p<0.001) and Haryana (chi-square=73.157, df=16, p<0.001). Training frequency was also associated with financial literacy in Punjab (chi-square=158.883, df=16, p<0.001) and Haryana (chi-square=36.393, df=12, p<0.001). Punjab displayed a significant ordered trend, whereas Haryana did not, indicating different state-level response patterns. Because 40.0%-56.0% of cells in the four analyses had expected counts below five, the asymptotic results should be treated as exploratory and confirmed with exact or Monte Carlo procedures. Overall, the findings support simpler service processes, local banking assistance and recurring, context-specific financial literacy interventions for SHG members.