UPSC CSE Prelims
Question 24
Consider the following statements in respect of RTGS and NEFT :
- In RTGS, the settlement time is instantaneous while in case of NEFT, it takes some time to settle payments.
- In RTGS, the customer is charged for inward transactions while that is not the case for NEFT.
- 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?
View correct answer and explanation
Correct answer: A
Correct Option: A (I only)
Explanation: RTGS transfers settle individually in real time, whereas NEFT operates in settlement batches. Both systems are available 24×7, and inward RTGS payments cannot be charged to the beneficiary by participating banks.
Statement / Pair / Item-wise Analysis:
I: True-RTGS is real-time gross settlement; NEFT is batch based.
II: False-no inward RTGS charge is permitted.
III: False-both RTGS and NEFT operate around the clock.
Option-wise Analysis:
A. Correct-this matches the facts and the item-wise assessment above.
B. Incorrect-includes II despite the item-wise findings.
C. Incorrect-includes III despite the item-wise findings.
D. Incorrect-includes III despite the item-wise findings; omits I which the answer requires.