by Q. Consider the following statements in respect of RTGS and NEFT:
UPSC Civil Services Examination (Prelims) 2025 – General Studies Paper I
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 above are correct?
(a) I only
(b) I and II
(c) I and III
(d) III only
Answer: (a) I only
Explanation:
Statement I – Correct
- RTGS (Real-Time Gross Settlement) processes transactions instantly and individually in real time.
- NEFT (National Electronic Funds Transfer) processes transactions in batches, so there may be some delay.
Statement II – Incorrect
- Inward RTGS transactions are not charged to the customer by RBI guidelines.
- Charges may apply for outward RTGS, but inward RTGS transactions are free, just like in NEFT.
Statement III – Incorrect
- Previously, both RTGS and NEFT operated only during specific hours on working days. However, major reforms by the Reserve Bank of India have now made both services available 24×7, 365 days a year.
Answer: (a) I only
