PM Modi hails ONDC's impact on small businesses, e-commerce sector
ONDC has started levying a fee of Rs 1.50 on every successful transaction worth Rs 250 and above from January 1, 2025
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Prime Minister Narendra Modi has lauded the government-backed Open Network for Digital Platform (ONDC) on the X platform. The PM wrote that ONDC has helped empower small businesses and revolutionized e-commerce in the country.
ONDC was launched in 2021 by the Modi government to democratise the e-commerce sector in the country. Since past three years, more than 150 million of transactions have taken p-lace via ONDC.
ONDC has contributed to empowering small businesses and revolutionising e-commerce, thus playing a vital role in furthering growth and prosperity. https://t.co/foXY99jw3X
— Narendra Modi (@narendramodi) January 2, 2025 ">The platform has added more than seven lakh sellers and service providers and over 200 network participants.
ONDC is an initiative for all aspects of the exchange of goods and services over digital or electronic networks.
According to a recent report by The Hindu BusinessLine, ONDC's main focus in 2025 will be enabling the idea of Bharat Ek Bazaar (One Nation, One Digital Market)".
ONDC's MD & CEO, ONDC, T Koshy said in December 2024 the platform would have completed around 15 million monthly transactions. In order to grow transxations across categories, Kosh said ONDC will need to attract more digitally mature consumers and digitally mature sellers to the network.
On charging a transaction fee, Koshy said, the platform will be a network development fee in order to sustain. However, the network has no plan for profit maximisation or dividend distribution.
"We intend to eventually start charging a network fee, probably once NPs build momentum, maybe in the coming year," Koshy added.
ONDC has started levying a fee of Rs 1.50 on every successful transaction worth Rs 250 and above from January 1, 2025.
The fee has been branded as a "nominal ONDC network infrastructure development and services development fee".
The fee will be paid by each seller network participant on the basis of the number of successful transactions. In case of financial services, on credit products, the lender will pay the fee. In insurance products, the insurance companies will pay, while for mutual fund products, the AMCs will pay up.
