Purpose - Digital Financial Literacy (DFL) is the ability to use digital technology to carry out financial transactions. DFL plays a crucial role in expanding access to financial services but its adoption in rural microfinance needs to be explored. This study aims to assess the current DFL Level among rural women, examines its role in usage of digital platforms for microfinance transactions as well as identify barriers to adoption. Methodology - Quantitative method approach through structured questionnaire was used to gather data from rural women engaged in microfinance activities and responses were analysed using descriptive statistics and chi-square test. Findings - The results indicate that rural women exhibit moderate digital financial literacy level. Statistical analysis reveals no significant relationship between DFL level and adoption of digital platforms suggesting that other factors influence adoption. The study highlights qualitative factors such as lack of trust, confidence and security concerns as the main barriers for digital microfinance transactions. Despite awareness and accessibility, traditional payment methods remain dominant for microfinance transactions among rural women. Practical Implications - These findings underline the need for confidence building measures and digital educational programs to improve usage of digital platforms in rural microfinance. Social Implications - The study contributes by focusing on key challenges and opportunities for microfinance in rural areas and offers recommendations to microfinance institutions and policymakers to enhance digital financial engagement among rural women. Originality – The paper provides a novel perspective on the relationship between DFL and rural microfinance adoption.