Self Help Groups play a very prominent role in the socio-economic and political empowerment of the rural poor. The current study aims to analyze the impact of financial inclusion on the ability of the members to handle problems and manage conflicts in the study area. Tumkur District in Karnataka was purposively selected for the purpose of this study. Data has been collected through a structured interview schedule from all the ten Taluks in Tumkur district. A sample of 720 Self Help Group members were chosen from a total of 3600 members. The study revealed that evils like female infanticide reduced significantly after joining the groups. Most of the members opined that conflicts arise due to differences in the background, perception and lack of trust and they are able to manage conflicts.