SEPTEMBER 20249OLA TO LIST ITS ENTIRE PRODUCT CATALOG ON ONDCRBI TO UNIFY ONLINE & OFFLINE LICENSING FOR PAYMENT AGGREGATORSOla Electric's decision to list its entire product range on the Open Network for Digital Commerce (ONDC) platform marks a significant step in its strategy to embrace and promote open, inclusive digital commerce. This move aligns with ONDC's mission of fostering a more transparent and decentralized The Reserve Bank of India (RBI) is set to streamline the licensing process for payment aggregators by consolidating the requirements for both online and offline entities. K. Vijayakumar, General Manager of DPSS RBI, announced this shift during the Global Fintech Fest, emphasizing the regulator's aim to issue a unified license e-commerce ecosystem, reducing the influence of dominant players in the sector.According to Ola's CEO Bhavish Aggarwal, ONDC represents the future of commerce, and he has been an outspoken advocate for its potential to transform the digital marketplace. His reference to ONDC as the "UPI moment for e-commerce" highlights its potential to democratize access to digital markets, much like the Unified Payments Interface (UPI) revolutionized digital payments in India.Ola Electric's participation in ONDC not only broadens its market presence but also signals a shift in the company's strategic direction. Aggarwal's announcement at the recent Ola Sankalp 2024 event about renaming Ola Cabs to Ola Consumer underlines a broader vision. The rebranding reflects the company's expansion into a more diversified array of consumer services beyond mobility, further supported by ONDC's digital infrastructure.This initiative, backed by government support, could enable Ola to reach new customers through kiranas and small merchants, making its products more accessible and affordable while positioning itself at the forefront of India's evolving e-commerce landscape. for payment aggregators that would cover both online and offline operations.Vijayakumar explained that as the distinction between physical and online spaces diminishes, a single license will allow payment aggregators to operate seamlessly across both domains. The regulator is also prioritizing the security of payment transactions, stressing that innovations by merchants and payment service providers must adhere to customer assurance and transaction authentication standards from the outset.Additionally, Vijayakumar highlighted the RBI's efforts to integrate Aadhaar-enabled Payment Systems (AePS) with existing Point of Sale (POS) machines to boost financial inclusion in rural areas. This move aims to lower costs and increase transaction volume among merchants, particularly in areas with limited connectivity. He also mentioned plans to enable transactions without internet access, providing a solution for areas with poor network coverage or during outages.The RBI, which stands for the Reserve Bank of India, is India's main regulatory body in charge of overseeing the country's banking system. It is under the ownership of the Ministry of Finance, Government of India, and is tasked with overseeing the control, issuance, and maintenance of the Indian rupee.
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