The rapid growth of advanced technology along with the increasing demand for innovation, is affecting every sector at its core. Certain sectors, on the other hand, have adapted to and thrived with, these changes, while others have struggled or adapted poorly. Among these rural women from Self-Help-Groups (SHGs) have been left behind and face various challenges preventing them from keeping pace. This study examines how adopting digital skills among women in SHGs fosters financial inclusion by enabling active participation in banking services through financial programs, and digital payment platforms. However due to limited access to technology, low literacy levels, socio-cultural constraints, resistance to technology, and guide–at–use, the challenges are many. The paper delves into how digital fluency becomes a challenge for women in the SHGs, and the impact of the same on financial literacy and empowerment. This study surveyed 132 government-supported and 145 NGO-supported SHG women to examine levels of digital and financial literacy, adoption barriers, and the challenges of adopting digital and financial literacy. The study finds that though NGO-supported SHGs have higher digital penetration and usage due to focused training interventions, the issue with government-supported SHGs is more related to infrastructure and digital awareness. The report calls for more targeted skilling initiatives, access to devices, and localized skilling to address this disconnect. Capacity building of rural women in digital finance is an efficient means of financial empowerment in a modern & digitally savvy world and incorporating digital upskilling programs in SHGs can make an impact for progressive financial inclusion.