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

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2026

“Digital Payments,Digital Infrastructure”, Economics

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

(a)

To allow digital 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

(d)

To mandate UPI-based payments for all online transactions

Correct Answer

Explanation

Microtheme: "Digital Payments,Digital Infrastructure" —
13 questions asked in Prelims in the past.

[2026] Which one of the following statements about Unified Payments Interface (UPI) and Central Bank Digital Currency (Digital Rupee) is NOT correct?
- (a) UPI is a real-time payment system but Digital Rupee is akin to sovereign paper currency
- (b) In case of UPI, settlement for end users happens instantly; in case of Digital Rupee, wallet balance gets transferred to another wallet (no traditional settlement)
- (c) UPI transactions are recorded by banks and reflected in bank statements; in case of Digital Rupee, no data is captured in bank statements
- (d) In both the cases (UPI and Digital Rupee), the liability lies with the users and their respective banks
Correct Answer: (D) In both the cases (UPI and Digital Rupee), the liability lies with the users and their respective banks
[2026] Which one of the following best describes the key objective of India’s ‘Open Network for Digital Commerce’ (ONDC) initiative?
- (a) To allow digital 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
- (d) To mandate UPI-based payments for all online transactions
Correct Answer: (C) To break the dominance of large e-commerce platforms by enabling interoperability across networks
[2026] An e-commerce revenue model where the seller has control over pricing but doesn’t keep products in stock and instead transfers customer orders and shipment details to a third-party supplier, who then ships the goods directly to the customer, is called:
- (a) Dropshipping Model
- (b) Affiliate Revenue Model
- (c) Transaction Fee Revenue Model
- (d) Agency Revenue Model
Correct Answer: (A) Dropshipping Model
[2025] Consider the following countries:
I. United Arab Emirates
II. France
III. Germany
IV. Singapore
V. Bangladesh
How many countries amongst the above are there other than India where international merchant payments are accepted under UPI?
- (a) Only two
- (b) Only three
- (c) Only four
- (d) All the five
Correct Answer: (B) Only three
[2025] Consider the following statements in respect of RTGS and NEFT:
I. In RTGS, the settlement time is instantaneous, while in case of NEFT, it takes some time to settle payments.
II. In RTGS, the customer is charged for inward transactions, while that is not the case for NEFT.
III. Operating hours for RTGS are restricted on certain days, while this is not true for NEFT.
Which of the statements given above is/are correct?
- (a) I only
- (b) I and II
- (c) I and III
- (d) III only
Correct Answer: (A) I only
[2024] Consider the following statements in respect of the digital rupee:
1. It is a sovereign currency issued by the Reserve Bank of India (RBI) in alignment with its monetary policy.
2. It appears as a liability on the RBI’s balance sheet.
3. It is insured against inflation by its very design.
4. It is freely convertible against commercial bank money and cash.
Which of the statements given above are correct?
- (a) 1 and 2 only
- (b) 1 and 3 only
- (c) 2 and 4 only
- (d) 1, 2 and 4*
Correct Answer: (D) 1, 2 and 4*
[2023] With reference to the Central Bank digital currencies, consider the following statements:
1. It is possible to make payments in a digital currency without using US dollar or SWIFT system.
2. A digital currency can be distributed with a condition programmed into it such as time-frame for spending it.
Which of the statements given above is/are correct?
- (a) 1 only
- (b) 2 only
- (c) Both 1 and 2
- (d) Neither 1 nor 2
Correct Answer: (C) Both 1 and 2
[2022] Consider the following :
1. Aarogya Setu
2. CoWIN
3. DigiLocker
4. DIKSHA
Which of the above are built on top of open-source digital platforms ?
- (a) 1 and 2 only
- (b) 2, 3 and 4 only
- (c) 1, 3 and 4 only
- (d) 1, 2, 3 and 4
Correct Answer: (D) 1, 2, 3 and 4
[2020] In India, the term “Public Key Infrastructure” is used in the context of
- (a) Digital security infrastructure
- (b) Food security infrastructure
- (c) Health care and education infrastructure
- (d) Telecommunication and transportation infrastructure
Correct Answer: (A) Digital security infrastructure
[2018] With reference to digital payments, consider the following statements:
1.BHIM app allows the user to transfer money to anyone with a UPI-enabled bank account.
2.While a chip-pin debit card has four factors authentication, BHIM app has only two factors of authentication.
Which of the statements given above is/are correct?
- (a) 1 only
- (b) 2 only
- (c) Both 1 and 2
- (d) Neither 1 nor 2
Correct Answer: (A) 1 only
[2017] Consider the following statements:
1. National Payments Corporation of India (NPCI) helps in promoting the financial inclusion in the country.
2. NCPI has launched RuPay, a card Payment scheme.
Which of the statements given above is/are correct?
- (a) 1 only
- (b) 2 only
- (c) Both 1 and 2
- (d) Neither 1 nor 2
Correct Answer: (C) Both 1 and 2
[2017] Which of the following is a most likely consequence of implementing the ‘Unified Payments Interface (UPI)’?
- (a) Mobile wallets will not be necessary for online payments.
- (b) Digital currency will totally replace the physical currency in about two decades.
- (c) FDI inflows will drastically increase.
- (d) Direct transfer of subsidies to poor people will become very effective.
Correct Answer: (A) Mobile wallets will not be necessary for online payments.
[2016] Regarding ‘DigiLocker’, sometimes seen in the news, which of the following statements is/are correct?
1. It is a digital locker system offered by the Government under Digital India Programme.
2. It allows you to access your e-documents irrespective of your physical location.
Select the correct answer using the code given below.
- (a) 1 only
- (b) 2 only
- (c) Both 1 and 2
- (d) Neither 1 nor 2
Correct Answer: (C) Both 1 and 2