UPSC Previous Year Question | Prelims GS | 2025

Consider the following statements regarding RTGS and NEFT: I. In RTGS, the settlement time is instantaneous, whereas in the 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?

  1. I only
  2. I and II
  3. I and III
  4. III only

Answer

Correct Answer

I only

Explanation

RTGS (Real Time Gross Settlement) settles transactions instantly on a one-to-one basis, whereas NEFT (National Electronic Funds Transfer) settles transactions in batches, taking some time (Statement I correct). However, RTGS does not charge customers specifically for inward transactions, and both RTGS and NEFT now operate on a 24x7 basis with no restricted operating hours (Statements II and III are incorrect).

Topics: banking, economy, rtgs neft