Financial inclusion is considered to be a very critical factor in achieving inclusive growth in a developing country like India. Despite fast-paced economic development, a sizable majority of our population, particularly the low income groups, continue to remain excluded from the opportunities and services provided by the financial sector. MGNREGA and Financial inclusion are both supplementary and complementary to each other. Achieving financial inclusion of all the beneficiaries of MGNREGA is a daunting task especially seen in the context of the lower penetration of financial services and products in the rural areas of a tribal hill district. It is here that the success story of a hilly–tribal district Chamba (HP) shows the way for others to emulate and replicate. The study finds that Chamba district, despite having a very difficult, hilly and inaccessible terrain, has achieved tremendous success in financial inclusion under MGNREGA by having 100 per cent financial inclusion even though the financial infrastructure in the form of banks and post offices to support such financial inclusion is less than optimal. The study shows that if a proper approach, strategy and coordination among all stakeholders is ensured, full financial inclusion can be achieved which will go a long way not only in linking all the MGNREGA beneficiaries with formal financial institutions, but will also take care of their financial and credit requirements in a hassle-free, timely and cost-effective manner.