PIB Press Releases

Shri Piyush Goyal chaired Open Network for Digital Commerce (ONDC)

Merchants will be able to save their data under ONDC to build credit history and reach consumers

The Union Minister of Commerce & Industry Shri Piyush Goyal today chaired a meeting for the review of the Open Network for Digital Commerce (ONDC) initiative of DPIIT. Shri Goyal deliberated with the members of the advisory council& experts on how the initiative will democratize digital commerce & move it from a platform-centric model to an open-network model.

The advisory council includes Shri R.S. Sharma, CEO, National Health Authority, Shri Nandan M. Nilekani, non-executive Chairman of Infosys, Shri Adil Zainulbhai, Chairman, QCI and Capacity Building Commission, Ms. Anjali Bansal, Founder & Chairperson, Avana Capital, Shri Arvind Gupta, Co-founder & Head, Digital India Foundation, Shri DilipAsbe, MD & CEO, NPCI, Shri Suresh Sethi, MD & CEO, NSDL, Shri Praveen Khandelwal, Secretary-General, Confederation of All India Traders and Shri Kumar Rajagopalan, CEO, Retailer Association of India.

While reviewing the progress, the Minister said that ONDC will work for everything and not just limited to products but also services. Shri Goyal suggested that some guidelines or basic infrastructure, size, ethics, and principles should be there. Shri Goyal further added that security and data privacy and confidentiality must be ensured. He said that this will create new opportunities and remove monopolistic environments.

It may be noted, Open Network for Digital Commerce christened ONDC is a globally first-of-its-kind initiative that aims to democratize Digital Commerce, moving it from a platform-centric model to an open network. As UPI is to the digital payment domain, ONDC is to e-commerce in India. ONDC will enable, buyers and sellers, to be digitally visible and transact through an open network. no matter what platform/application they use. ONDC will empower merchants and consumers by breaking silos to form a single network to drive innovation and scale, transforming all businesses from retail goods, food to mobility

Advisory Council was constituted on July 5 and its first meeting was convened on July 16, 2021. The Advisory Council adopted its role to guide and mentor design, implementation, and national rollout of ONDC in addition to the scope of the erstwhile Steering Committee. The Advisory Council discussed the key design elements of a national rollout. Its recommendations have been incorporated in the implementation plan developed.

ONDC shall take all measures to ensure confidentiality & privacy of data in the network

– ONDC shall not mandate sharing of any transaction-level data by participants with ONDC.

– ONDC will work with its participants to publish anonymized aggregate metrics on network performance without compromising confidentiality and privacy

– ONDC will be compliant with the Information Technology Act, 2000 and designed for compliance with the emerging Personal Data Protection Bill.

In addition to establishing ONDC to manage the Open Network, the Government may consider establishing an Independent Regulatory Authority for eCommerce (such as SEBI for Capital Market).

ONDC shall initially give special attention to help onboard small and medium players. ONDC to plan for a well-developed Information, Education & Communication campaign to educate, encourage, and address any apprehensions of various network participants. ONDC should evolve over time as a self-sustaining entity generating income for its operations and surplus for continuous investment in technology, processes, and network development. This is a very workable option considering the significant benefits it will extend to the ecosystem players

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