A recent survey by LocalCircles, a community social media platform, has revealed that a significant majority of digital wallet users in India are against any reduction in the amount of money that can be stored or transacted through these instruments. The survey, which garnered over 43,000 responses from users across 304 districts, indicates that 63% of respondents want the Reserve Bank of India (RBI) to either retain or increase current wallet limits.
Key Findings from the Survey
The survey was conducted in response to the RBI's draft Master Direction on Prepaid Payment Instruments (PPIs) released in April 2026. While the draft raises the maximum outstanding balance for Full-KYC wallets to ₹2 lakh, it proposes to cut the monthly cash top-up limit from ₹50,000 to ₹10,000 and introduces a uniform ₹25,000 monthly cap on person-to-person transfers. These proposed changes have sparked concern among users.
According to the survey, only 7% of users support reducing limits, while 23% believe that limits should be based on the level of KYC or authentication completed by the user. Additionally, 62% of respondents stated that reducing limits would inconvenience their everyday payments, and 38% believe that lower limits would not curb fraud but would instead penalize genuine users.
User Preferences on Wallet Limits
When asked about the appropriate level of limits, 33% of respondents said current limits should be increased as wallets are becoming more integral to daily life, while 30% felt current limits are adequate and should be retained. This combined 63% majority contrasts sharply with the 7% who favor reductions. The survey also found that 62% of users would face inconvenience if limits were reduced, with 26% saying they would shift back to bank or UPI for higher-value payments, and 17% saying they would revert to cash.
Concerns About Fraud Prevention
Many users expressed skepticism about the effectiveness of lower limits in preventing fraud. The survey noted that 38% of users believe reducing limits will not curb fraud and will only penalize genuine users. This sentiment is particularly strong given the proposed sharp cut in monthly cash top-up from ₹50,000 to ₹10,000, which users see as a disproportionate measure.
Survey Demographics
The survey included 66% male and 34% female respondents, with 42% from tier 1 cities, 33% from tier 2, and 25% from tier 3, 4, 5, and rural districts. All participants were validated citizens registered on the LocalCircles platform.
Next Steps
LocalCircles plans to escalate these findings to the RBI and other stakeholders as part of the public consultation on the draft PPI Directions. While users support measures that enhance security, interoperability, and faster refunds, the survey suggests that the central bank should reconsider any reduction in wallet storage and transaction limits. Instead, it may consider retaining or increasing limits, potentially linking higher limits to the level of KYC or authentication completed by the user—an approach endorsed by 23% of respondents.
