Consider the following statements in respect of RTGS and NEFT:
1. In RTGS, the settlement time is instantaneou

Question

Consider the following statements in respect of RTGS and NEFT:
1. In RTGS, the settlement time is instantaneous, while in case of NEFT, it takes some time to settle payments.
2. In RTGS, the customer is charged for inward transactions while that is not the case for NEFT.
3. 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?

Accepted Answer

RTGS (Real-Time Gross Settlement) operates on a continuous, real-time basis, ensuring immediate settlement of transactions between banks. NEFT (National Electronic Funds Transfer), on the other hand, settles transactions in batches at specific intervals throughout the day. While banks may charge for RTGS transactions, including inward ones, NEFT transactions are generally not charged to the customer for inward credit. Both systems have specific operating hours, though they can differ and are subject to RBI guidelines and holidays.