The main objective of the paper is to find out the differentials of financial inclusion on rural households in Guntur and Ananthapur districts of Andhra Pradesh. A major proportion of respondents were in the productive age group in both the districts. The total literates were more in Guntur compared with Anathapur. Cultivators, agricultural laborers and private employees were significantly higher in Guntur while business, non agriculture labour and self employment were more in Ananthapur.The proportion of Semi medium, Small and medium farmers were significantly higher in Ananthapur district compared with Guntur district. The proportion of households with an asset value of less than one lakh and 2-4 lakhs were higher in Ananthapur compared with Guntur district. The proportion of commercial bank accounts considerably higher in Ananthapur where as such accounts in cooperatives, post offices and SHGs were more in Guntur district. Majority of the respondents have open their account in banks for doing savings and deposits purpose and for availing loan purpose. The main purpose of their savings for future emergencies followed by safety purpose and children’s education. The respondents reported that purpose of their savings with formal institutions for easy withdrawal, for availing loan or credit and easy accessibility. The respondents prefer Government insurance was a major source in the both the districts. The study suggests that access campaigns for banking, financial literacy and other activities will have a profound influence on vulnerable groups and they should be added to the mainstream that truly represents the start of financial inclusion.