IDFC First Bank joins ONDC

MUMBAI: Private sector lender IDFC First Bank said it has signed up as participant in the Open Network for Digital Commerce (ONDC), an initiative of the ministry of commerce and industry, to enable early adoption of the network among its customers.

The bank said it has enabled a platform for buyers which will help them discover sellers in the ONDC network as it develops over time. The bank has started onboarding small merchants, who are its current account customers, on to a partner app registered with ONDC. The app is expected to help small merchants carry out transactions over ONDC’s electronic network and step up their digital footprint, it said.

B Madhivanan, chief operating officer, IDFC First Bank, said, “By leveraging ONDC, we can enable merchants to mobilize the network effect and unlock value at scale. ONDC is a fully digitally- driven model and aligns with the bank’s digital and social-good ethos.”

ONDC, a Section 8 company, has been set up to democratize e-commerce and will transition e-commerce from a platform centric model to an open network model, similar to the Unified Payments Interface (UPI) for payments. The bank said that ONDC is expected to bring inclusivity and interoperability into supply chains, buyer universes, logistics and technology services.

Shireesh Joshi, chief business officer, ONDC, said, “IDFC FIRST Bank joining the network is poised to expand the network on both sides - buyers and sellers. This is a great development and we look forward to IDFC FIRST Bank offering more options on the network on both sides.”