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?
- AI onlyCorrect
- BI and II
- CI and III
- DIII only
Explanation
Analyzing statements about RTGS and NEFT:
I. RTGS settlement is instantaneous while NEFT takes some time: Correct. RTGS (Real Time Gross Settlement) processes transactions in real-time on a gross basis, while NEFT (National Electronic Funds Transfer) processes transactions in batches at specific intervals, taking longer to settle.
II. In RTGS, customer is charged for inward transactions but not in NEFT: Incorrect. Typically, banks do not charge customers for receiving inward transactions in either RTGS or NEFT. Charges are usually applicable for outward transactions in both systems.
III. RTGS operating hours are restricted on certain days while NEFT is not: Incorrect. Both RTGS and NEFT now operate 24x7 throughout the year, including weekends and holidays, so neither has restricted operating hours on certain days.
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