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?
A
I only
Correct answer
B
I and II
C
I and III
D
III only
Explanation
Statement I is correct: RTGS settles each transaction individually in real time, while NEFT settles in half-hourly batches. Statement II is wrong: banks may not charge customers for inward RTGS or NEFT transactions, and since 2019 the RBI has also waived its own charges on both. Statement III is wrong: both RTGS (since December 2020) and NEFT (since December 2019) run 24x7 throughout the year, so neither has restricted hours. So I only.
Banking and Payment SystemsDigital PaymentsRTGSNEFTDigital PaymentsRBIFund Transfer