Can shopkeepers legally refuse to accept UPI?

Experts said small shopkeepers can refuse UPI and accept cash, which remains legal tender. Merchants with an annual turnover of ₹50 crore or more, however, must provide at least one digital payment option under tax laws. Several Delhi-NCR shopkeepers recently displayed "cash only" posters after the government introduced 0.4% MDR on certain UPI transactions above ₹2,000.