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:
Let's evaluate each statement regarding RTGS (Real Time Gross Settlement) and NEFT (National Electronic Funds Transfer): I. Correct: RTGS processes transactions individually and continuously, resulting in instantaneous settlement. NEFT processes transactions in batches at specific intervals, meaning it takes some time for payments to settle. II. Incorrect: For both RTGS and NEFT, banks are generally prohibited from charging customers for inward transactions (receiving money). Charges typically apply only for outward transactions (sending money). III. Incorrect: As of December 2020, RTGS became available 24x7, 365 days a year. NEFT has also been available 24x7 since December 2019. Therefore, operating hours for neither RTGS nor NEFT are restricted on certain days. Therefore, only statement I is correct.