Consider the following statements in respect of RTGS and NEFT : I. In RTGS, the settlement time is instantaneous while in 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?
- (a) I only ✓ UPSC's answer
- (b) I and II
- (c) I and III
- (d) III only
Why the answer is (a)
• RTGS (Real Time Gross Settlement) settles each transaction individually and instantly, and is meant for high-value transfers (minimum ₹2 lakh); NEFT settles in half-hourly batches, so there is a short delay — statement I is correct.
• Statement II is wrong: under RBI rules, banks may not charge customers for inward transactions in either RTGS or NEFT; charges, where any, apply only to outward transfers.
• Statement III is wrong: since December 2020 both RTGS and NEFT are available 24×7, 365 days a year, so there is no restriction on RTGS operating hours.
• Both systems are operated by the RBI, unlike IMPS and UPI, which are run by NPCI.
• Hence I only, option (a).
Why the other options are wrong
- (b) I and II
- Statement II is wrong: inward RTGS transactions are free of charge.
- (c) I and III
- Statement III is wrong: RTGS operates 24x7 like NEFT.
- (d) III only
- Statement III is wrong and statement I is correct.
Asked in the GS Paper I of the UPSC Civil Services Preliminary Examination 2025, held on 25 May 2025. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.