QUESTION

Medium

Economy

Prelims 2025

Consider the following statements in respect of RTGS and NEFT:

I. In RTGS, the settlement time is instantaneous while in case of NEFT, it takes some time to settle payments. II. In RTGS, the customer is charged for inward transactions while that is not the case for NEFT. III. Operating hours for RTGS are restricted on certain days while this is not true for NEFT.

Which of the statements given above is/are correct?

Select an option to attempt

Explanation

RTGS (Real Time Gross Settlement) and NEFT (National Electronic Funds Transfer) are two major electronic payment systems in India, differing mainly in settlement speed and mechanism.

✅ Statement I: Correct RTGS processes transactions instantly in real time, while NEFT settles in hourly batches, causing a time lag.

❌ Statement II: Incorrect Inward transactions (receiving money) are not charged in either RTGS or NEFT as per RBI guidelines.

❌ Statement III: Incorrect Both RTGS and NEFT are available 24x7x365, including on holidays.

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