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?
Detailed Explanation:
Correct Answer: ✅ Option 1 (I only)
RTGS (Real Time Gross Settlement) and NEFT (National Electronic Funds Transfer) are electronic fund transfer systems operated by the Reserve Bank of India. The key difference lies in the method and speed of settlement.
✅ Statement I is Correct: RTGS transactions are settled individually and in real time, making them almost instantaneous. NEFT transactions are settled in batches, so there may be a slight delay.
❌ Statement II is Incorrect: As per RBI guidelines, banks cannot levy charges on inward transactions (receiving funds) under either RTGS or NEFT.
❌ Statement III is Incorrect: Both RTGS and NEFT are available 24×7×365, including weekends and holidays. Therefore, RTGS operating hours are no longer restricted.
Short Notes: RTGS vs NEFT
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RTGS stands for Real Time Gross Settlement.
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NEFT stands for National Electronic Funds Transfer.
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RTGS settles transactions individually and instantly.
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NEFT settles transactions in half-hourly batches on a continuous basis.
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Both systems are operated by the Reserve Bank of India (RBI).
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Both RTGS and NEFT are available 24×7×365.
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No charges are permitted on inward transactions under either system.
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