India Launches Pilot Phase Of UPI-TYPE Protocol ONDC |
| Credit: Simplified UPSC |
INTRODUCTION
• India recently launched the pilot phase of open network for digital commerce(ONDC) in five cities - Delhi, Bengaluru, Bhopal, Shillong and Coimbatore.
• ONDC is a set of standards for voluntary adoption by sellers or logistics providers or payment gateways, it will create more inclusiveness within the digital commerce ecosystem.
• As many as 80 firms are currently working with the ONDC and they are at different stages of integration.
REASONS BEHIND THE LAUNCH
• It would break the hold that Amazon and Flipkart have on e-commerce. It seeks to control digital monopolies.
• It also aims to democratise fast growing e commerce sector, help small retailers and bring buyers and sellers on a platform.
• Acc. to recent report, the e-commerce market in India is expected to touch $5.5 billion in market size by 2025,this initiative will drive more innovation by including wide range of players.
PROBLEMS TO BE SOLVED
• It will help small merchants from various cities to make their products equally visible without being a part of a large established platform.
• It will enable the merchants to capture the customers online and will provide proper digital sourcing channel.
• It will help in finding the right set of buyers and sellers, fulfillment agents and the other players.
STEPS TAKEN
• ONDC is working closely with multiple entities that can help enterprises to come online, authorities have started aligning with various states and entities like SIDBI and NABARD.
• The ONDC has roped in eSamudaay, ERP player Gofrugal, digital marketing outfit growth falcon, and automation and data insights outfitsellerapp to work with sellers.
• As many as 20 organisations of national repute have confirmed investments of Rs.255 crore into the ONDC. SBI,UCO BANK,HDFC BANK, ICICI BANK and BOI have already committed there investments.
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