Experts suggest focusing on who bears UPI merchant discount rate costs. Introducing this fee could increase business operating expenses and squeeze margins. Small merchants and kirana stores may face significant challenges with this change. UPI's success as a public digital infrastructure is at stake. Policymakers must balance sustainability with UPI's broader economic and strategic value.

The government is mulling restoring MDR on UPI transactions for large merchants. This and more in todays ETtech Morning Dispatch.

The central government is considering reintroducing a merchant discount rate on UPI transactions. This levy would apply only to large merchants with an annual turnover of Rs 1-1.5…