Q. 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
(b) I and II
(c) I and III
(d) III only
Correct Answer : (a) I only
UPSC Prelims 2025 GS Paper's Solution
Explanation :
I. In RTGS, the settlement time is instantaneous while in case of NEFT, it takes some time to settle payments.
This statement is correct. RTGS (Real-Time Gross Settlement) processes transactions individually and in real-time, meaning funds are transferred and settled instantly. NEFT (National Electronic Funds Transfer) operates on a deferred net settlement basis, processing transactions in batches at half-hourly intervals, so it takes some time for payments to settle.
II. In RTGS, the customer is charged for inward transactions while that is not the case for NEFT.
This statement is incorrect. For both RTGS and NEFT, there are no charges levied for inward transactions (when funds are credited to the beneficiary’s account). Charges may apply for outward transactions (sending money) in both systems, though online NEFT and RTGS transactions are often free or have minimal fees.
III. Operating hours for RTGS are restricted on certain days while this is not true for NEFT.
This statement is incorrect. Both RTGS and NEFT services in India are available 24×7, 365 days a year, including weekends and holidays. While some banks might have specific cut-off times for branch-based transactions, the online systems operate continuously.
Therefore, only statement I is correct.
