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?
Explanation
The distinction between RTGS and NEFT lies mainly in their settlement mechanism, while recent RBI reforms have aligned them in terms of availability and charges.
Statement I is correct. RTGS settles transactions in real time on a gross basis, meaning each transaction is processed instantly and individually. In contrast, NEFT works on a deferred net settlement system where transactions are processed in batches, causing a slight delay.
Statement II is incorrect. As per RBI rules, no charges are levied on inward transactions for both RTGS and NEFT. The statement is wrong because it incorrectly assumes RTGS inward transactions are chargeable.
Statement III is incorrect. Earlier, both systems had restricted timings, but now both RTGS and NEFT operate 24×7, including holidays. Hence, there is no difference in operating days or hours.
Thus, only Statement I is correct.