Survey Overview
LocalCircles conducted a nationwide survey on digital wallet limits that gathered 43,000 valid responses from users in 304 districts of India. The respondents were verified citizens registered on the LocalCircles platform.
User Preference on Wallet Limits
When asked whether the Reserve Bank of India (RBI) should modify the amount of money that can be stored or transacted through digital wallets, 33% of participants advocated for an increase in the current limits, citing growing reliance on wallets, while 30% felt the existing limits were adequate and should be retained. Combined, this yields a 63% share of users who want the limits either retained or increased. Conversely, only 7% supported a reduction in limits, another 7% were undecided, and 23% proposed that limits be linked to the level of KYC or verification completed by the user. This question received 22,259 responses.
Perceived Impact of Reducing Limits
A separate question explored how a reduction in wallet limits would affect daily usage. Sixty‑two percent of respondents said it would inconvenience them because they rely on wallets for routine payments. Twenty‑six percent indicated they would be forced to revert to bank or UPI channels for higher‑value transactions, and 17% said they would shift back to cash. Additionally, 19% believed a reduction would diminish rewards and offers, another 19% felt it would reduce exposure and make them feel safer from fraud, while 31% thought it would not affect them significantly. Overall, 38% asserted that lower limits would not curb fraud but would penalise genuine users. This question attracted 21,356 responses, and respondents could select multiple options, so percentages do not sum to 100%.
Demographic Profile of Respondents
The survey sample comprised 66% male and 34% female participants. Geographically, 42% of respondents were from tier‑1 cities, 33% from tier‑2 cities, and the remaining 25% from tier‑3, tier‑4, tier‑5 and rural districts.
RBI Draft Master Direction on Prepaid Payment Instruments (PPIs) 2026
In April 2026, the RBI released a draft Master Direction on PPIs, replacing the August 2021 framework, with a public comment window open until 22 May 2026. The draft proposes to raise the maximum outstanding balance for Full‑KYC wallets to ₹2 lakh but sharply cuts the monthly cash top‑up limit for such wallets from ₹50,000 to ₹10,000. It also introduces a uniform ₹25,000 monthly cap on person‑to‑person transfers, mandates interoperability with UPI and card networks, requires immediate refunds for failed transactions, and imposes tighter compliance norms on issuers, citing rising fraud and anti‑money‑laundering concerns.
Implications and Next Steps
LocalCircles will forward the survey findings to the RBI and other stakeholders as part of the public consultation on the draft direction. While users welcome measures that enhance security, interoperability and faster refunds, the overwhelming opposition to any reduction in storage or transaction limits—reflected by 63% of respondents—suggests the central bank should reconsider the proposed cuts. The survey also highlights a potential demand for a differentiated limit regime based on KYC depth, an approach endorsed by 23% of participants.