Which of the following is not a type of Depository Institution?

The correct answer is NABARD.

Key Points

• ​NABARD refers to the National Bank for Agriculture and Rural Development.
• NABARD was formed on the recommendation of the committee formed on 30 March 1979, under the Chairmanship of Shri B. Sivaraman.
• It came into existence on 12 July 1982 by transferring the agricultural credit functions of RBI and refinance functions of the then Agricultural Refinance and Development Corporation (ARDC).
• NABARD today is fully owned by the Government of India.

Additional InformationDepository institution:

• A depository institution is a financial entity that accepts deposits from customers, safeguards these deposits, and uses them to lend to individuals, businesses, and governments.
• The primary function of depository institutions is to facilitate the flow of capital and liquidity in the economy. They offer a safe place for people and companies to keep their money, while also making these funds available for productive purposes such as loans and investments.
• Depository institutions include various types of banks and credit unions, such as:
  • Commercial Banks: These are the most common type of depository institutions. They offer a wide range of financial services including accepting deposits, making business and personal loans, and providing investment products.
  • Savings Banks and Savings and Loan Associations (S&Ls): These institutions traditionally focused on accepting savings deposits and making mortgage loans, but their services have expanded over time.
  • Credit Unions: These are not-for-profit cooperative organizations that accept deposits, provide loans, and offer other financial services to their members. Membership is often based on a common bond, such as employment at a specific company, membership in an association, or residence in a particular geographic area.