Indian Economy News

UPI-type protocol ONDC to be gradually expanded to more cities: Mr. Piyush Goyal

  • IBEF
  • July 15, 2022

After the successful completion of its trial phase, the presence of the open network for digital commerce (ONDC), a protocol similar to the Unified Payments Interface (UPI), would be gradually spread to more cities, according to Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution, and Textiles, Mr. Piyush Goyal.

The Open Network for Digital Commerce (ONDC) is a set of standards that merchants, logistics companies, and payment gateways can voluntarily implement. The goal is to democratise the nation's quickly expanding e-commerce market in order to support small shops and lower the dominance of online retail giants, which dominate the majority of the nation's online sales, restrict access to the market, favour some sellers over others, and reduce supplier margins. Small retailers have the ability to select whatever logistics provider and seller platform they want based on several factors like location and prices.

The ONDC was launched in five cities in April - Delhi-NCR, Bengaluru, Bhopal, Shillong and Coimbatore. As many as 20 reputable national organisations have confirmed investments of Rs. 255 crore (US$ 32 million) in the ONDC.

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