Everything You Should Know About ONDC in India

In the month of April, the Indian Government proposed the ONDC (Open Network for Digital Commerce) to compete with global

ONDC India

In the month of April, the Indian Government proposed the ONDC (Open Network for Digital Commerce) to compete with global giants which dominate the booming eCommerce market. As per the recent updates, most big companies intend to join the ONDC network, including small and medium-sized businesses.

But what is ONDC? What is all the fuss about it?

ONDC is a technological revolution that will change the digital eCommerce environment of India. The firstmost objective of this initiative is to address all complexities or challenges that consumers or businesses experience over online marketplaces. Some of those challenges include multiple-delivery apps, user convenience hassles, and monopolistic practices.

We will go further into this technological inclusion in this article for you to get complete clarity on its purpose. So, read along till the end!

Understanding the ONDC Network- How Does it Work?

ONDC is a revolution for the digital commerce fraternity of the country. With this, there will be fair competition, more innovations, and enhanced user experience. It doesn’t just allow you to promote innovations but also brings up numerous choices for Indian consumers. Thus, the digital commerce landscape will grow widely to become dynamic & diverse.

In short, ONDC develops a user-friendly platform with seamless functionalities for consumers to be free from using multiple apps to shop for their selected products. Thus, online shopping is free from all hassles.

So, how does it work?

Well, ONDC is like the middleman for online shoppers and sellers. It connects both parties to process a transaction. You can relate its functionality to be similar to UPI (Unified Payment Interface). Just as UPI enables users to process mobile payments, irrespective of the app they use, ONDC allows consumers to shop for a diverse variety of products under one roof.

Different Features of ONDC-Network

Now that you are aware of what ONDC is and how it works, let’s get an insight into the potential benefits that its features have to offer. Here are a few of the features for you to count on:

1. Increased Competition and Choice

ONDC works towards bringing multiple eCommerce sellers to a single platform. Thus, it offers all consumers a widened variety of product choices, and that too at competitive pricing.

2. Lowered Prices

With ONDC in play, the prices of products will be amazingly lowered compared to other digital commerce applications. With such a level of affordability, the consumers will have the feasibility to save money on every order. Thus, if you are conscious about what you spend online shopping, ONDC can save you a lot of money.

3. Promotions & Discounts

ONDC offers a lot of discounts and promotional deals to consumers. You might get free delivery, discounts on specific products, or seasonal offers. Thus, the shopping experience will be further enhanced with such an initiative.

4. Industry Democratisation

When you convert electronic or digital commerce from a platform-oriented approach to an open network, ONDC democratises the industry entirely. When data is stored through ONDC, the merchants will find it easy to reach the customers and set up credit histories.

5. Digitalisation of the Value Chain

ONDC supports the digitalisation of the value chain, which will standardise the eCommerce operations, boost the efficiency of logistics and increase the lifetime value of customers.

6. Privacy & Confidentiality is Priority

As per Indian Government, ONDC takes all the necessary measures to protect the confidentiality and privacy of data within the network. There’s no need for participants to share all transaction-level data with ONDC. It will further provide the aggregate metrics associated with network performance while keeping in mind confidentiality and privacy.

What Opportunities for Banks with the ONDC?

Open Network for Digital Commerce enables the banks with various opportunities to provide a better experience for the end consumers. Some of those opportunities include:

1. Embrace Tech-as-a-Service

The financial services companies have the potential to offer a complete banking tech stack by combining the seller and buyer apps. By expanding the B2B2C market, subscription-based or value-added services are about to grow immensely to generate accelerated income.

2. Derive New Banking Channels

One of the most crucial opportunities that is offered by ONDC is the introduction of a new banking channel for both wholesale and retail use cases. And that’s possible because it is a completely modular & unrestricted marketplace. For instance, the banks are now introducing digital commerce service solutions for their customers over their unified platform.

3. Data-Driven Banking

With ONDC, the banks can now have detailed access to customer behaviour data for both MSME as well as retail customers. For every transaction that gets processed through the bank’s system, access to information about their buying patterns will be recorded. Thus, banks will have the feasibility to use that data for providing customers with personalised interactions and advertising loyalty programs and pertinent deals.

Objectives of ONDC India

ONDC India is operating with a few objectives in mind. And there’s a prediction that the next couple of years will see a change in digital commerce adoption among consumers. A few of those ONDC objectives are:

1. Ending the Monopolies of All eCommerce Platforms

Equal opportunities are to be provided to all the key players of the eCommerce industry. Thus, it provides a healthy environment for all the budding eCommerce players to compete with established brands.

2. Making Digital Commerce Supportive For Small Businesses

ONDC provides small businesses with interactive tools or resources for expanding the outreach of their products online and growing their brand.

3. Increasing eCommerce Adoption in the Rural Areas

It will provide you with access to newer opportunities and markets for small businesses, especially in rural areas.

4. Reducing the Cost of Operation

ONDC intends to provide cost-effective solutions for displaying your products to a wider audience and help you expand the business easily.


So, this is a clear depiction of how ONDC India will change the fate of the digital commerce landscape. It is more like a transformative force that will help both businesses and consumers to redefine the way they approach online transactions. It is a transparent, decentralized, and efficient nature, which is empowering the nation toward the digitalization of the future.

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