Economy2025
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?
Explanation
The correct option is "I only" because, in the context of RTGS (Real-Time Gross Settlement), transactions are processed in real-time, leading to instantaneous settlement, while NEFT (National Electronic Funds Transfer) operates in batch processing, resulting in delays. Statement II is incorrect as both RTGS and NEFT can involve charges, depending on the bank's policies, and III is also inaccurate as RTGS has specific operating hours, while NEFT generally operates on a wider schedule, including weekends and holidays. Understanding the differences between these systems is essential for comprehending the efficiency and functionality in the Indian banking framework, as highlighted in standard UPSC sources.