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?
Answer & explanation
Answer: (a) I only
Only statement I is correct. RTGS settles each payment individually and continuously, whereas NEFT settles in half-hourly batches. Inward RTGS transactions carry no customer charge, and both systems run 24x7x365, so statements II and III fail.
- ✓ I RTGS processes payments continuously, one transaction at a time; NEFT collects payments and settles them in batches, now at half-hourly intervals.
- ✗ II RBI's framework for RTGS says inward transactions are free, with no charge to be levied on the customer.
- ✗ III RTGS has been available 24x7x365 since 14 December 2020, and NEFT also runs round the clock on all days, so neither has day-wise restrictions.
Remember · RTGS: continuous, gross settlement, 24x7x365 since 14 Dec 2020, inward transactions free. NEFT: half-hourly batches, also 24x7x365.
Sources
- Reserve Bank of India, FAQs on the RTGS System: NEFT versus RTGS ↗ “NEFT is an electronic fund transfer system in which the transactions received up to a particular time are processed in batches. Contrary to this, in RTGS, the transactions are processed continuously on a transaction-by-transaction basis throughout the day. … a) Inward transactions – Free, no charge to be levied. … RTGS is available 24x7x365 with effect from December 14, 2020.”
- Reserve Bank of India, FAQs on the NEFT System: operating hours ↗ “The NEFT system is available round the clock throughout the year on all days, i.e., on 24x7x365 basis. NEFT presently operates in batches on half-hourly intervals throughout the day.”
Question and answer: UPSC's official GS Paper I (2025, Series A) — paper ↗ · answer key ↗. Explanation: Minimalist IAS, checked 30 Sept 2026 (how we verify). ·