The present research aims to explore the adoption of digital wallets in rural Rajkot, Gujarat, and their contribution to promoting financial literacy and inclusion. Despite the encouragement for a cashless economy at the national level, rural regions continue to encounter challenges in terms of low awareness, poor infrastructure, and knowledge gaps. Primary data were obtained from 107 respondents in the form of structured surveys and interviews, complemented by secondary data in the form of RBI and MeitY reports. Descriptive statistics and chi-square analysis were used to explore associations between demographic characteristics and usage behavior. The results indicate that educated and younger respondents are more apt to use digital wallets, and occupation has a great impact on usage frequency. The major obstacles are unreliable connectivity, ignorance of the service, and inadequate customer support. The report points towards good consumer experiences and increasing acceptance of digital wallets, while calling for better infrastructure and more focused literacy initiatives. Policy actions include offline payment integration, merchant incentives, and region-specific financial literacy schemes to narrow the rural-urban digital divide.