Digital finance and matrilineal socio-cultural influences on microfinance through self-help groups: Evidence from East Khasi Hills, Meghalaya

Microfinance through Self-Help Groups (SHGs) serves as a vital mechanism for delivering banking services, empowering women, and enhancing rural livelihoods across India. Meghalaya’s unique matrilineal system, in which women play a central role in the family and inherit property, makes it a distinctive context for studying these issues. This study examines how digital finance and matrilineal socio-cultural factors together influence microfinance through SHGs in the East Khasi Hills district, using only secondary information. The study method is a qualitative descriptive approach, where the study is based on secondary data analysed using government reports, MSRLM records, policy documents and peer-reviewed literature. To evaluate the growth patterns and the performance of the institutions, a five-year trend analysis (2019 20-2023 24) of SHG promotion and digital financial outreach is carried out. The paper also has policy implications because it reminds policymakers of how digital finance strategies can be reconciled with matrilineal socio-cultural organisations to enhance women-centred financial inclusion in North-East India. It draws on data from government reports, policies, research papers, and institutional documents related to digital finance, SHG performance, and women-focused microfinance in the region. In recent years, increasing digitalisation of financial services and the continued influence of socio-cultural structures have significantly shaped microfinance outcomes. The study focuses on outcomes such as access to credit, savings behaviour, participation in financial activities, and improvements in livelihoods. The findings indicate that digital financial services have helped SHGs expand their outreach and operate more efficiently and transparently, while matrilineal customs have encouraged women’s participation, leadership, and control over financial resources. However, challenges such as inadequate digital infrastructure, low levels of financial and digital literacy, and regional disparities still constrain the full realisation of the benefits of microfinance. Overall, by combining digital and cultural perspectives, the study enhances understanding of microfinance in North-East India and offers useful insights for policies aimed at strengthening SHG-based financial inclusion in matrilineal societies.