Hello @nidhintomy
Hope you are doing well.
void BOARD_InitSPI(void) configures pin routing and optionally pin electrical features. SPI flash should be connected to PTC16 (SPI0_SCK), PTC17 (SPI0_SOUT), PTC18 (SPI0_SIN) and PTC19 (SPI0_PCS0); please verify this configuration in your source code. You can find more information about SPI API in MCUXpresso SDK API Reference Manual_MKW36Z4 (inside KW36 SDK documentation folder > docs), Chapter 11: DSPI Serial Peripheral Interface Driver
SPI flash is intended for Over-the-Air Programming (OTAP) or for storing non-volatile system data, or parameters. When NVM is enabled, it is used as non-volatile storage management by the host stack, and as you mentioned, it could be used to store bonding data. For more information about memory configuration, please consult the MKW36/35/34 Reference Manual, Chapter 4.6 Memories and memory interfaces; and Bluetooth Low Energy Application Developer Guide, Chapter 2.3 Non-volatile Memory (NVM) access.
Regards,
Eduardo.