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?
Show answer
Answer: A. Statement I is correct: RTGS settles each transaction in real time, while NEFT settles in half-hourly batches. Statement II is wrong: RBI does not allow banks to charge customers for inward RTGS or inward NEFT transactions. Statement III is wrong: since December 2020 RTGS runs 24x7, and NEFT has been 24x7 since December 2019. So only I.
Watch for: Old textbook facts about RTGS timings and charges are outdated after RBI's 2019-2020 changes.
Why the other options are wrong
- B. Statement II is wrong, because inward RTGS transactions are free.
- C. Statement III is wrong, because both RTGS and NEFT run 24x7.
- D. Statement III is wrong, because RTGS has no restricted days now.
Source to check: RBI FAQs on RTGS and NEFT (rbi.org.in)
Answer from the official UPSC key. Written and fact-checked by AI against the official key. Spotted a mistake? Report it.