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

(a) To allow government control over all digital commerce transactions
(b) To replace private e-commerce players
(c) To break the dominance of large e-commerce platforms by enabling interoperability across networks ✓ UPSC's answer
(d) To mandate UPI-based payments for all online transactions

Why the answer is (c)

• ONDC, launched in 2022 by the Department for Promotion of Industry and Internal Trade, is an open, interoperable network built on open protocols, like UPI for payments.

• Its objective is to let any buyer app transact with any seller app across the network, so small retailers and local sellers can reach customers without being locked into one platform, reducing the dominance of a few large e-commerce players — option (c).

• Option (a) is wrong: ONDC is a non-profit network, not a government control mechanism over transactions.

• Option (b) is wrong: it does not replace private players; existing platforms can join the network as participants.

• Option (d) is wrong: ONDC is payment-agnostic and does not mandate UPI.

Why the other options are wrong

(a) To allow government control over all digital commerce transactions: ONDC is an open network, not a mechanism for government control of transactions.
(b) To replace private e-commerce players: ONDC complements rather than replaces private platforms, which can join it.
(d) To mandate UPI-based payments for all online transactions: ONDC does not mandate any payment method.

Asked in the GS Paper I of the UPSC Civil Services Preliminary Examination 2026, held on 24 May 2026. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.