Flipkart Gets NBFC Licence | 06 Jun 2025

Source: LM 

Flipkart has become the first Indian e-commerce company to receive a Non-Banking Financial Company (NBFC) licence from the Reserve Bank of India (RBI), enabling it to directly lend to its customers and sellers. 

• Requirements to get NBFC Licence:  To register as an NBFC under the RBI Act, 1934, a company must be incorporated under the Companies Act, 1956 or 2013. 
  • It must maintain a minimum Net Owned Fund (NOF) of Rs 10 crore.  
• NBFC: It is a company registered under the Companies Act, 1956 or 2013, primarily engaged in lending, investments in securities, leasing, or hire-purchase.  
  • It excludes entities whose main business is agriculture, industry, trade in goods/services, or real estate.  
  • Companies that primarily receive deposits through schemes or arrangements, either as lump sums or installments, are classified as Residuary Non-Banking Financial Companies (Residuary NBFCs). 
• NBFCs and Banks: Unlike banks, NBFCs cannot accept demand deposits, are not part of the payment and settlement system (so they cannot issue cheques), and depositors under NBFCs are not protected by the Deposit Insurance and Credit Guarantee Corporation (DICGC).