Despite significant public health investments, rural India’s sanitation challenges persist, raising questions about effective intervention strategies. This study investigates the influence of participation in social schemes on household sanitation behaviours, specifically toilet adoption and soap usage. Using panel data from the India Human Development Survey (2004–05 and 2011–12), a Linear Probability Model with Propensity Score Matching is employed to address potential selection bias. Results indicate that scheme participation increases toilet adoption by 45.5% and soap usage by 13.8%, with effects varying by socio-economic status, demographic characteristics, and local infrastructure. Particularly strong impacts are observed among historically disadvantaged communities, suggesting that social schemes can effectively reduce sanitation inequities. The spillover effect on soap usage indicates these interventions may catalyse broader hygiene behaviour changes. The findings highlight the value of social schemes in improving rural sanitation practices and offer insights for future programme design.