Set D - UPSC Prelims 2025 Solutions

QQuestion

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?

OOptions

A) I only

B) I and II

C) I and III

D) III only

✓Correct Answer

A) I only

DDalvoy Solutions

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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SUPSC Prelims Strategy and Tips

For payment system questions, focus on the core technical differences (real-time vs batch processing) and current operational features. Both systems have evolved to provide 24x7 services.

SUPSC Prelims 2025 Syllabus Analysis

Economics - Digital payment systems and banking technology

AUPSC Prelims 2025 Question Analysis

Medium difficulty - requires knowledge of current payment system features and operations

Question 18

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