Circular
Learnings
UPSC CSE Preparation

Question

Which one best describes the key objective of India’s Open Network for Digital Commerce (ONDC)?

ATo allow government control over all digital commerce transactions
BTo replace private e-commerce players
CTo break the dominance of large e-commerce platforms by enabling interoperability
DTo mandate UPI-based payments for all online transactions
Correct Answer — C

Explanation

Option A — Incorrect: ONDC is not based on government-controlled transactions. Its aim is to create an open and decentralized digital commerce ecosystem.

Option B — Incorrect: ONDC does not intend to eliminate private e-commerce platforms. Existing apps and platforms can join the ONDC network and transact with one another.

Option C — Correct: ONDC seeks to democratize digital commerce by moving away from closed, platform-driven marketplaces towards an open and interoperable network. This gives MSMEs, small sellers and local businesses greater access to consumers and reduces dependence on a few dominant platforms.

Option D — Incorrect: ONDC does not require UPI as the mandatory payment mechanism. The comparison with UPI refers mainly to its open-network model, not to compulsory use of UPI.

Therefore, Option C is the correct answer.

Stay Connected
Join our Telegram channel
Join Channel →