Is it possible to do time limited user internet access on 2760 ?

ie a user/IP address/MAC address is limited to say only 2 hours a day ?

Yes it can, with current firmware, the Wireless LAN interface has an option for [Station Control] which does exactly that. Please be aware that it can only apply to the wireless LAN of the router, not wired connections, though the current VigorAP products can also do this, which negates the issue as long as your clients are all wireless.
It's not as advanced as User Management present on the Vigor 2860 and other models, so it may be worth considering one of those if you require more control over client connections or provide this control for wired LAN access.

I had seen this in the wireless settings.

Unfortunately the users also connect via wireless access points so the time quota rule would have to be in the firewall.

Might have to consider the 2860 then.