What is Open Network Digital Commerce?

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Overview:

In a first, the Centre has boarded 11 fair price shops on the state-run e-commerce portal Open Network Digital Commerce (ONDC).

About Open Network Digital Commerce 

  • It is an open-source network set up to enable buyers and sellers to transact with each other irrespective of the e-commerce platform on which either of them are registered.
  • It will enable local commerce across segments, such as mobility, grocery, food order and delivery, hotel booking and travel, among others, to be discovered and engaged by any network-enabled application.
  • It is an initiative of the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry.
  • Purpose
    • To promote open networks for all aspects of exchange of goods and services over digital or electronic networks. 
    • To create new opportunities, curb digital monopolies and by supporting micro, small and medium enterprises and small traders and help them get on online platforms.
    • It seeks to democratise digital or electronic commerce, moving it from a platform-centric model to an open-network.
  • Benefits:
    • It offers small retailers an opportunity to provide their services, and goods to buyers across the country through an e-commerce system.
    • It enables merchants to save their data to build credit history and reach consumers.
    • It is expected to digitise the entire value chain, promote inclusion of suppliers, derive efficiencies in logistics and enhance value for consumers.
    • ONDC protocols would standardize operations like cataloguing, inventory management, order management and order fulfilment.

Q1) What is a Fair Price Shop?

It means a shop which has been licensed to distribute essential commodities by an order issued under section 3 of the Essential Commodities Act, 1955, to the ration card holders under the Targeted Public Distribution System;

Source: Govt lists fair price shops on ONDC