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?
Answer:
(a)
Moderate
Newspaper/CA
Core Books/NCERT
Answer: (a) I only Explanation: • Statement I: o RTGS (Real Time Gross Settlement): Transactions are settled instantaneously on a gross basis. o NEFT (National Electronic Funds Transfer): Transactions are settled in batches (hourly or half-hourly), causing a delay compared to RTGS. o Conclusion: Correct. • Statement II: o The RBI mandates that no charges be levied on inward transactions for both RTGS and NEFT (since 2019 for NEFT and extended to RTGS). o Banks may charge for outward transactions, but inward transactions are free for customers. o Conclusion: Incorrect. • Statement III: o Both RTGS and NEFT operate 24/7, including holidays, since December 2020 (RBI’s initiative). o There are no restricted operating hours for RTGS on certain days. o Conclusion: Incorrect.