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Walmart’s Flipkart Secures RBI Approval for Direct Lending in India

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Walmart-owned Flipkart has obtained a non-bank finance company (NBFC) licence from India’s central bank, the Reserve Bank of India (RBI), enabling the e-commerce giant to directly lend to customers and sellers on its platform. This marks the first time RBI has granted such a licence to a major Indian e-commerce player, allowing Flipkart to offer loans without relying on third-party lenders.

The certificate of registration, officially recognizing Flipkart Finance Private Limited as an NBFC, was issued on March 13, 2025. Flipkart applied for the licence in 2022, and the approval, previously unreported, was confirmed by company spokespersons after Reuters reviewed the official documents.

Currently, Flipkart offers personal loans through partnerships with banks and NBFCs like Axis Bank, IDFC Bank, and Credit Saison. With the new licence, it can launch a more profitable direct lending operation on its e-commerce platform and its fintech app, super.money. The company is also considering offering financing options to sellers on its platform.

The start of lending operations depends on internal steps such as appointing key management and finalizing business strategies. A source familiar with the matter expects Flipkart to commence lending “in a few months.”

Flipkart, valued at $37 billion following a $1 billion funding round led by Walmart in 2024, is in the process of shifting its holding company from Singapore to India. Walmart acquired a controlling stake in Flipkart in 2018, which also included ownership of PhonePe, a fintech firm planning its own IPO.

Flipkart’s competitor Amazon recently acquired Indian NBFC Axio, but that deal awaits RBI approval.

India Central Bank Governor Issues Warning on Rising Digital Frauds, Announces Secure Domain Names

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India’s central bank governor, Sanjay Malhotra, issued a cautionary note on Friday, urging lenders to address the increasing incidence of digital payment frauds. Malhotra highlighted the concern that cyber attacks, data breaches, and other digital threats are on the rise as both Indian banks and consumers adopt newer technologies. He also noted that the Reserve Bank of India (RBI) would soon introduce secure website domain names to counter fraudulent practices.

Fraudsters often exploit subtle differences in domain names to deceive users, tricking them into sharing sensitive information or making fraudulent transactions. In response, the RBI is introducing two exclusive internet domain names. Banks will be allocated the ‘bank.in’ domain, while non-bank financial entities will receive the ‘fin.in’ domain. This initiative aims to enhance online security by establishing a unique identity for each entity, making it easier for consumers to recognize legitimate platforms.

The Institute for Development and Research in Banking Technology (IDRBT) will serve as the exclusive registrar for these domain names, with registration set to begin in April 2025.

 

India’s Central Bank Chief Warns of Renewed Global Inflation Risks and Economic Growth Concerns

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India’s central bank governor, Shaktikanta Das, cautioned that global inflation could return, and economic growth may decelerate despite recent monetary policy successes. Speaking at CNBC-TV18’s Global Leadership Summit in Mumbai, Das acknowledged that central banks have achieved a “soft landing” amid repeated global shocks, but cautioned that the risks of inflation and slower growth persist due to ongoing geopolitical and economic challenges.

Das highlighted several factors exacerbating global instability, including escalating geopolitical conflicts, economic fragmentation, commodity price volatility, and the impacts of climate change. These factors have compounded uncertainty in financial markets, with conflicting trends across asset classes. Das pointed to the U.S. dollar’s recent appreciation, even as the Federal Reserve continues with its rate-cutting strategy, as one example of global market contradictions.

Investors are closely monitoring the implications of a potential second term for Donald Trump, given his stance on trade tariffs and immigration, both of which could stoke inflation and limit the Fed’s ability to continue rate cuts. The dollar index, which measures the dollar against six major currencies, recently surged to its highest level since November of last year, reflecting its strength despite the Fed’s easing.

In light of these global tensions, Das noted several market trends that illustrate the complex economic landscape:

  1. Bond Yields: Government bond yields are climbing, even as developed economies have pursued lower interest rates.
  2. Gold and Oil Prices: The prices of these commodities, which often move in sync, are now diverging markedly.
  3. Geopolitical Tensions vs. Market Stability: While geopolitical tensions are rising, global markets have remained resilient, reflecting an unusual tolerance to risk.

Turning to India’s economic performance, Das asserted that the nation’s economy remains robust and resilient, even amid global instability. He anticipates that inflation in India will moderate over time, although some volatility is expected. India’s economy has sustained growth throughout various global challenges, affirming its economic stability.

India’s Union Minister of Commerce, Piyush Goyal, expressed a desire for more supportive monetary policy, urging the Reserve Bank of India (RBI) to lower interest rates to further stimulate growth. The RBI recently maintained its interest rate at 6.5% and adopted a “neutral” policy stance, raising market hopes for potential rate cuts in the near future. Das refrained from commenting on the likelihood of a December rate adjustment, leaving room for speculation about the RBI’s next move.