The Open Network for Digital Commerce (ONDC) is an initiative of the Ministry of Commerce and Industry to create a facilitation model to help small retailers take advantage of digital commerce.
ONDC, a government initiative, offers a huge platform for growth in four key sectors, including financial services, agriculture, manufacturing and e-commerce, a Deloitte report said on Thursday.
The Open Network for Digital Commerce (ONDC) is an initiative of the Ministry of Commerce and Industry to create a facilitation model to help small retailers take advantage of digital commerce.
It’s guidelines fostering unique, open, interoperable networks, distinct from software, platforms, brokers, or programs.. The network aims to help MSME retail operators tap into the rapidly growing e-commerce space in the country.
According to the article, the ONDC will give financial institutions access to the MSME market, which currently relies heavily on government initiatives and non-bank finance firms (NBFCs) because mainstream financial institutions do not view them favorably.
Financial institutions find it unprofitable to lend to this industry due to the amount of the loan, and the lack of information on SMEs has made it difficult to approve credit using conventional decision-making techniques.
