Q78.
Consider the following statements in respect of RTGS and NEFT : I. In RTGS, the settlement time is instantaneous while in case of NEFT, is 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
Explanation
I is correct: The acronym 'RTGS' stands for Time Gross Settlement, which can be explained as system where there is continuous and real-time of fund-transfers, individually on a basis (without netting). NEFT an electronic fund transfer system in which the received up to a particular time are in batches. Contrary to this, in RTGS, the are processed continuously on a basis throughout the day. II is not correct: With a view to rationalise service charges levied by banks for offering funds through RTGS system, a broad framework of has been mandated as under: Inward transactions – Free, no charge to be levied. Outward transactions – ₹ 2,00,000/- to 5,00,000/-: exceeding ₹ 25/- (exclusive of tax, if any) ₹ 5,00,000/-: not exceeding ₹ 50 (exclusive of if any) III is not correct: RTGS is available 24x7x365 effect from December 14, 2020.