Purpose: Digital Financial Literacy (DFL) refers to the capability to utilize technology for conducting financial transactions. DFL plays a pivotal role in broadening access to financial services. Nevertheless, its adoption in rural microfinance needs further investigation. This study assesses the prevailing DFL level among rural women, explores its impact on the use of digital platforms for microfinance transactions and identifies barriers to its adoption. Methodology: A quantitative methodology using a structured questionnaire was utilized to collect data from rural women, with responses analyzed through descriptive statistics, the chi-square test, as well as logistic regression. Findings: The findings indicate that rural women possess moderate levels of digital financial literacy. Statistical analysis revealed a marginally significant relationship between DFL level and the adoption of digital platforms, implying that other factors may influence adoption. The regression analysis indicated a significant negative relationship between these variables suggesting that a higher DFL level leads to lower digital microfinance use. Therefore, this study underscores qualitative factors such as lack of trust, confidence, and security concerns as primary barriers to digital microfinance transactions. Despite the availability and knowledge of digital platforms, traditional payment channels are still the norm for microfinance transactions among rural women. Practical Implications: The findings emphasize the significance of the implementation of confidence-building measures and digital training programs for enhancing the use of digital platforms in the rural microfinance context. Social Implications: The study adds value by examining the primary challenges and opportunities for microfinance in rural areas and provides recommendations to microfinance institutions and policymakers to further enhance the digital financial participation of rural women.