The literature widely recognizes the significance of financial inclusion for economic development. Even Nevertheless, a sizable portion of the rural populace continues to live outside of the official financial system. The relationship between financial inclusion and rural economic well-being is examined in this study. The study is based on a primary survey of 426 rural women from three districts in rural Bihar, India, who participate in Self-Help Groups (SHGs). Through increased access to and utilization of credit facilities, physical banking services (PBS) are positively correlated with household economic well-being, according to the study, which uses structural equation modeling (SEM). In rural areas, PBS is likewise favorably correlated with both access to and use of insurance services; however, there is no positive correlation between insurance services and economic well-being. One significant route for policy is the National Rural Livelihood Mission (NRLM). PBS access is enhanced by NRLM, which also mediates the relationship between PBS, credit utilization, and rural economic well-being. The study emphasizes the importance of policies that concentrate on the efficient execution of NRLM programs, enhanced insurance scheme awareness and delivery, and focused initiatives to remove supply-side and demand-side obstacles to financial access in order to increase economic well-being.