Published Paper Details:

The emergence of digital technology has done a metamorphic change in the entire lifestyle and livelihoods system. This technology has the potential to strengthen the process of financial inclusion and its impact as well. In India, self-help groups-led microfinance programmes have achieved significant success in financial inclusion, livelihoods promotion, and women empowerment. The recent upsurge in the usage of digital technology has been changing the whole self-help group movement and has vast potential to enhance the welfare of women's self-help groups in a variety of ways. This study examines the socio-technical transformation of Self-Help Groups (SHGs) in India, tracing their evolution from informal credit groups in the 1980s to digitized, enterprise-driven entities in 2026. Central to this transformation is Digital Literacy, which has evolved beyond basic smartphone usage into a tool for financial inclusion, market access, and social agency. By analysing flagship initiatives like NABARD's e-Shakti, Jharkhand's Tablet Didi, Kerala's Kudumbashree, and the Lakhpati Didi mission, the paper evaluates how digital tools have enhanced credit linkage (35% growth post-digitization) and transparency. While the "Phygital" model has empowered over 2 crore women to reach "Lakhpati" status, challenges such as the rural-urban connectivity divide, cyber-security fears among elderly members, and the high cost of data persist. The study concludes that digital literacy is the primary catalyst for transitioning rural women from subsistence-level livelihoods to formal enterprise ownership through platforms like SHE-Marts.