🧷 Authentic Classroom Explanation by IAS Monk

📌 The Question:

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?

(a) I only
(b) I and II
(c) I and III
(d) III only

✅ Correct Answer: (a) I only

🧠 Curiosity Raiser

Why did RBI move RTGS and NEFT to a 24×7×365 system?
Because modern economies cannot pause money flows for calendars.

📘 Enrichment Notes (Prelims Precision)

🔹 RTGS vs NEFT: Core Difference

• RTGS (Real Time Gross Settlement)
  • Transactions settled individually and instantly
• NEFT (National Electronic Funds Transfer)
  • Transactions processed in batches, hence some time lag

✅ Statement I is correct

🔹 Charges for RTGS

• Inward transactions: Free (no charges)
• Outward transactions:
  • ₹2–5 lakh → up to ₹25
  • Above ₹5 lakh → up to ₹50

❌ Statement II is incorrect

🔹 Operating Hours

• RTGS: 24×7×365 (since 14 December 2020)
• NEFT: Also 24×7×365

❌ Statement III is incorrect

🔑 One-Line Recall

• RTGS = real-time, gross
• NEFT = batch settlement
• Both run 24×7

🧘‍♂️ IAS Monk Whisper

When settlement becomes instant, trust becomes invisible.