INTERNATIONAL JOURNAL OF RESEARCH CULTURE SOCIETY

Abstract: This study explores the socio-economic determinants shaping saving and investment behaviour among rural households in Pune District, Maharashtra. It investigates how income stability, educational attainment, occupational structure, household composition, gender dynamics, financial awareness, and institutional accessibility influence financial decision-making at the grassroots level. While classical economic frameworks such as the Life-Cycle Hypothesis and the Permanent Income Hypothesis provide theoretical grounding, their explanatory power appears limited in rural settings characterized by seasonal earnings, agricultural dependency, and socio-cultural influences. The study highlights the coexistence of formal and informal financial systems in rural Pune. Informal mechanisms—such as self-help groups, rotating savings practices, and community lending—continue to command strong trust due to social cohesion and ease of access. In contrast, formal banking institutions offer security, scalability, and regulatory protection but face constraints related to procedural complexity, limited financial literacy, and digital barriers.Recent policy interventions, such as the Atal Pension Yojana, the Startup India Seed Fund Scheme, and the Agriculture Infrastructure Fund, have influenced rural financial behaviour by enhancing social security coverage, supporting rural entrepreneurship, and improving credit access for agricultural investments. Additionally, the expansion of Business Correspondent (BC) banking units and district-level financial literacy campaigns under the Reserve Bank of India’s guidelines have aimed to bridge gaps in awareness and accessibility.Despite these efforts, challenges such as limited tailored financial products, persistent digital divides, and gender-based access disparities continue to shape saving and investment practices in rural Pune. The findings underscore the need for localized, context-sensitive financial strategies that align socio-economic realities with institutional support to strengthen financial inclusion and productive investment in the district.