{"id":2861,"date":"2026-04-22T20:09:53","date_gmt":"2026-04-22T14:39:53","guid":{"rendered":"https:\/\/lotusarise.com\/qna\/?p=2861"},"modified":"2026-04-22T20:09:56","modified_gmt":"2026-04-22T14:39:56","slug":"consider-the-following-statements-in-respect-of-rtgs-and-neft","status":"publish","type":"post","link":"https:\/\/lotusarise.com\/qna\/upsc\/prelims\/consider-the-following-statements-in-respect-of-rtgs-and-neft","title":{"rendered":"Consider the following statements in respect of RTGS and NEFT:"},"content":{"rendered":"\n
    \n
  1. In RTGS, the settlement time is instantaneous while in case of NEFT, it takes some time to settle payments.\u00a0\u00a0<\/li>\n\n\n\n
  2. In RTGS, the customer is\u00a0charged for inward<\/strong>\u00a0transactions, while that is not the case for NEFT.\u00a0\u00a0\u00a0<\/li>\n\n\n\n
  3. Operating hours for RTGS are\u00a0restricted on certain days<\/strong>, while this is not true for NEFT.\u00a0\u00a0\u00a0\u00a0<\/li>\n<\/ol>\n\n\n\n

    Which of the statements given above is\/are correct?    <\/p>\n\n\n\n

      \n
    • I only\u00a0\u00a0\u00a0\u00a0<\/li>\n\n\n\n
    • I and II\u00a0\u00a0\u00a0\u00a0<\/li>\n\n\n\n
    • I and III\u00a0\u00a0\u00a0\u00a0\u00a0<\/li>\n\n\n\n
    • III only\u00a0\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n
      \n

      Answer: (a) I only <\/strong><\/p>\n<\/blockquote>\n\n\n\n

        \n
      • RTGS (Real Time Gross Settlement):\u00a0<\/strong>As the name suggests,\u00a0RTGS transactions are processed in \u201creal-time\u201d and on a \u201cgross\u201d basis<\/strong>. This means\u00a0each transaction is settled individually as it is received, with virtually no waiting period.<\/strong>\u00a0The beneficiary bank typically receives the funds in real-time, and the beneficiary\u2019s account is credited within a short time (usually within 30 minutes of receiving the transfer message).<\/li>\n\n\n\n
      • NEFT (National Electronic Funds Transfer):<\/strong>\u00a0NEFT operates on a \u201cDeferred Net Settlement\u201d (DNS) basis. This means\u00a0transactions are collected and processed in batches at specific intervals.\u00a0<\/strong>While NEFT is now available 24\u00d77, the\u00a0actual settlement still happens in half-hourly batches.<\/strong>\u00a0So, it takes some time for the payment to be settled.<\/li>\n\n\n\n
      • According to RBI guidelines,\u00a0inward RTGS transactions\u00a0<\/strong>(receiving money)\u00a0are free of charge.<\/strong>\u00a0Banks are not permitted to levy any charges on the beneficiary for receiving funds via RTGS. Similarly, inward NEFT transactions are also free of charge.<\/strong><\/li>\n\n\n\n
      • Previously, both RTGS and NEFT operated only during specific hours on working days. However, major reforms by the Reserve Bank of India have\u00a0now made<\/strong>\u00a0both services available 24\u00d77, 365 days a year.<\/strong><\/li>\n\n\n\n
      • NEFT became a round-the-clock service in\u00a0 2019, followed by RTGS in 2020<\/strong>. This means that customers can now transfer funds using either system at any time of the day, on any day of the year, including weekends and bank holidays.<\/li>\n<\/ul>\n\n\n\n
        \"\"<\/figure>\n","protected":false},"excerpt":{"rendered":"

        Which of the statements given above is\/are correct?     Answer: (a) I only <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"categories":[3,1],"tags":[38],"years":[63],"class_list":["post-2861","post","type-post","status-publish","format-standard","hentry","category-prelims","category-upsc","tag-indian-economy","years-63"],"acf":[],"taxonomy_info":{"category":[{"value":3,"label":"Prelims"},{"value":1,"label":"UPSC"}],"post_tag":[{"value":38,"label":"Indian Economy"}],"years":[{"value":63,"label":"2025"}]},"featured_image_src_large":false,"author_info":{"display_name":"LotusArise","author_link":"https:\/\/lotusarise.com\/qna\/author\/team-lotusarise"},"comment_info":0,"category_info":[{"term_id":3,"name":"Prelims","slug":"prelims","term_group":0,"term_taxonomy_id":3,"taxonomy":"category","description":"","parent":1,"count":1251,"filter":"raw","cat_ID":3,"category_count":1251,"category_description":"","cat_name":"Prelims","category_nicename":"prelims","category_parent":1},{"term_id":1,"name":"UPSC","slug":"upsc","term_group":0,"term_taxonomy_id":1,"taxonomy":"category","description":"","parent":0,"count":1269,"filter":"raw","cat_ID":1,"category_count":1269,"category_description":"","cat_name":"UPSC","category_nicename":"upsc","category_parent":0}],"tag_info":[{"term_id":38,"name":"Indian Economy","slug":"indian-economy","term_group":0,"term_taxonomy_id":38,"taxonomy":"post_tag","description":"","parent":0,"count":225,"filter":"raw"}],"_links":{"self":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/posts\/2861","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/comments?post=2861"}],"version-history":[{"count":0,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/posts\/2861\/revisions"}],"wp:attachment":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/media?parent=2861"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/categories?post=2861"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/tags?post=2861"},{"taxonomy":"years","embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/years?post=2861"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}