All Courses
Explore Courses UPSC Exam UPSC Test Series Free Notes EduRev Infinity Get the App Login Join for Free
Sign in Open App
Banking Exams Exam  >  Banking Exams Questions  >  What is the difference between RTGS and NEFT ... Start Learning for Free
SaveJoin the Discussion on the App
What is the difference between RTGS and NEFT as electronic methods of remitting funds in the banking industry?
  • a)
    There is no limit on the value/amount of funds to be transferred via RTGS, however, only funds up to Rs. 10,000 can be remitted through NEFT
  • b)
    Under NEFT, the transactions are completed as and when they arise during working hours while in RTGS, the transactions take place in batches
  • c)
    Under RTGS, all the transfers will be held up for a specific time while under NEFT, a transaction is completed on a one-to-one basis
  • d)
    RTGS is suitable for transactions of large amounts requiring immediate transfer while NEFT is suitable for small-value transactions where there is no urgency
Correct answer is option 'D'. Can you explain this answer?
FREE This question is part of
Download PDF Attempt Test
Download PDF Attempt this Test
Most Upvoted Answer
What is the difference between RTGS and NEFT as electronic methods of ...
Real Time Gross Settlement (RTGS) is a payment system in real-time above Rs. 2 lakhs. NEFT is a payment system that takes place in batches for which there is no minimum or maximum limit.
Free Test
FREE
Start Free Test
Start Free Test
Community Answer
What is the difference between RTGS and NEFT as electronic methods of ...
RTGS vs NEFT as Electronic Methods of Remitting Funds

RTGS (Real Time Gross Settlement)
- Suitable for transactions of large amounts requiring immediate transfer
- No limit on the value/amount of funds to be transferred
- Transactions take place individually and are processed instantly
- Typically used for high-value transactions where urgency is a priority

NEFT (National Electronic Funds Transfer)
- Suitable for small-value transactions where there is no urgency
- Transactions are completed as and when they arise during working hours
- Funds up to Rs. 10,000 can be remitted through NEFT
- Transactions are processed in batches at specific times throughout the day
In summary, RTGS is ideal for high-value transactions that require immediate transfer, while NEFT is more suitable for smaller transactions where urgency is not a concern. Each method has its own advantages and is used based on the specific needs of the sender and recipient.
< Previous Question Next Question >
Explore Courses for Banking Exams exam

Similar Banking Exams Doubts

Direction: Read the passage carefully and select the best answer to each question out of the given five alternatives.Banks will conduct special clearing operations for annual closure of government accounts on March 31, which is the last day of the current fiscal year, the RBI has said. The Reserve Bank has issued directions to the banks for smooth clearing operation and asked them to mandatorily participate in it. With regard to annual closing of accounts related transactions of the central and state governments, special measures are put in place for 2020-21, the RBI has instructed all the member banks to maintain sufficient balance in their clearing settlement account. Normal clearing timings as applicable to any working Wednesday shall be followed on March 31, 2021, the RBI said in a notification addressed to the member banks, urban and state cooperative banks, payments banks, small finance banks as well as the NPCI. To facilitate accounting of all the government transactions for the current financial year 2020-21 by March 31, 2021, it has been decided to conduct special clearing exclusively for government cheques across the three CTS grids on March 31, 2021, the RBI said.Under this, presentation clearing will take place between 1700 to 1730 hrs and return clearing will take place between 1900 and 1930 hrs at the three CTS (cheque truncation system) grids located in New Delhi, Chennai and Mumbai. “It is mandatory for all banks to participate in the special clearing operations on March 31, 2021. All the member banks under the respective CTS grids are required to keep their inward clearing processing infrastructure open during the special clearing hours and maintain sufficient balance in their clearing settlement account to meet settlement obligations arising out of the special clearing,” said the regulator. Besides, it has asked the banks under the respective CTS grids to adhere to the instructions issued to them by the President of the respective CTS grid. Under the CTS system, there is no need to present a cheque physically for clearance, instead an electronic image is being transmitted to the paying branch through the clearing house, with the relevant data. This eliminates the cost of movement of the physical cheques and reduces time for collection and clearance of cheques. All government transactions done by agency banks for 2020-21 must be accounted for within the same financial year, the RBI said. The central bank said all agency banks should keep their designated branches open for over the counter transactions related to government transactions up to the normal working hours on March 31, 2021. “Transactions through National Electronic Funds Transfer (NEFT) and Real Time Gross Settlement (RTGS) System will continue up to 2400 hours as hitherto on March 31, 2021. “Special clearing will be conducted for collection of government cheques on March 31, 2021 for which the Department of Payment and Settlement Systems (DPSS), RBI will issue necessary instructions,” it said. With regard to reporting of central and state government transactions to RBI, including uploading of GST/e-receipts luggage files, the reporting window of March 31, 2021 will be extended and kept open till 1200 hours on April 1, 2021, the RBI said.What is being transmitted under the CTS?

In the following passage there are blanks, each of which has been numbered. These number are again printed below the passage and against each, five words are suggested, one of which fits the blank appropriately. Find out the appropriate word in each case.Bank customers may no(26)have to maintain a minimum balance in their saving account as the Reserve Bank of India has directed banks to do away with the practice of levying penalty on account holders who don’t do so. While this spells good news for account holders, some bankers said this would increase their(27)and they might start charging for some of the services they were offering free. “I think what they are saying is, if you don’t charge on(28)minimum balance then you are authorised to charge on the transaction,” said HDFC banks’ managing director AdityaPuri. For instance, if a customer has a balance of less than Rs. 10000 in the savings account, the bank may not charge for non-maintenance of minimum balance, but could(29)charge for more than two ATM transactions a month.RBI has urged banks to limit the liability of customers in cases like non-maintenance of balance or electronic transactions(30)banks are not able to prove customer negligence.

Top Courses for Banking ExamsView all

Top Courses for Banking Exams

What is the difference between RTGS and NEFT as electronic methods of remitting funds in the banking industry?a)There is no limit on the value/amount of funds to be transferred via RTGS, however, only funds up to Rs. 10,000 can be remitted through NEFTb)Under NEFT, the transactions are completed as and when they arise during working hours while in RTGS, the transactions take place in batchesc)Under RTGS, all the transfers will be held up for a specific time while under NEFT, a transaction is completed on a one-to-one basisd)RTGS is suitable for transactions of large amounts requiring immediate transfer while NEFT is suitable for small-value transactions where there is no urgencyCorrect answer is option 'D'. Can you explain this answer?
Question Description
What is the difference between RTGS and NEFT as electronic methods of remitting funds in the banking industry?a)There is no limit on the value/amount of funds to be transferred via RTGS, however, only funds up to Rs. 10,000 can be remitted through NEFTb)Under NEFT, the transactions are completed as and when they arise during working hours while in RTGS, the transactions take place in batchesc)Under RTGS, all the transfers will be held up for a specific time while under NEFT, a transaction is completed on a one-to-one basisd)RTGS is suitable for transactions of large amounts requiring immediate transfer while NEFT is suitable for small-value transactions where there is no urgencyCorrect answer is option 'D'. Can you explain this answer? for Banking Exams 2024 is part of Banking Exams preparation. The Question and answers have been prepared according to the Banking Exams exam syllabus. Information about What is the difference between RTGS and NEFT as electronic methods of remitting funds in the banking industry?a)There is no limit on the value/amount of funds to be transferred via RTGS, however, only funds up to Rs. 10,000 can be remitted through NEFTb)Under NEFT, the transactions are completed as and when they arise during working hours while in RTGS, the transactions take place in batchesc)Under RTGS, all the transfers will be held up for a specific time while under NEFT, a transaction is completed on a one-to-one basisd)RTGS is suitable for transactions of large amounts requiring immediate transfer while NEFT is suitable for small-value transactions where there is no urgencyCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for Banking Exams 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the difference between RTGS and NEFT as electronic methods of remitting funds in the banking industry?a)There is no limit on the value/amount of funds to be transferred via RTGS, however, only funds up to Rs. 10,000 can be remitted through NEFTb)Under NEFT, the transactions are completed as and when they arise during working hours while in RTGS, the transactions take place in batchesc)Under RTGS, all the transfers will be held up for a specific time while under NEFT, a transaction is completed on a one-to-one basisd)RTGS is suitable for transactions of large amounts requiring immediate transfer while NEFT is suitable for small-value transactions where there is no urgencyCorrect answer is option 'D'. Can you explain this answer?.
Solutions for What is the difference between RTGS and NEFT as electronic methods of remitting funds in the banking industry?a)There is no limit on the value/amount of funds to be transferred via RTGS, however, only funds up to Rs. 10,000 can be remitted through NEFTb)Under NEFT, the transactions are completed as and when they arise during working hours while in RTGS, the transactions take place in batchesc)Under RTGS, all the transfers will be held up for a specific time while under NEFT, a transaction is completed on a one-to-one basisd)RTGS is suitable for transactions of large amounts requiring immediate transfer while NEFT is suitable for small-value transactions where there is no urgencyCorrect answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for Banking Exams. Download more important topics, notes, lectures and mock test series for Banking Exams Exam by signing up for free.
Here you can find the meaning of What is the difference between RTGS and NEFT as electronic methods of remitting funds in the banking industry?a)There is no limit on the value/amount of funds to be transferred via RTGS, however, only funds up to Rs. 10,000 can be remitted through NEFTb)Under NEFT, the transactions are completed as and when they arise during working hours while in RTGS, the transactions take place in batchesc)Under RTGS, all the transfers will be held up for a specific time while under NEFT, a transaction is completed on a one-to-one basisd)RTGS is suitable for transactions of large amounts requiring immediate transfer while NEFT is suitable for small-value transactions where there is no urgencyCorrect answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of What is the difference between RTGS and NEFT as electronic methods of remitting funds in the banking industry?a)There is no limit on the value/amount of funds to be transferred via RTGS, however, only funds up to Rs. 10,000 can be remitted through NEFTb)Under NEFT, the transactions are completed as and when they arise during working hours while in RTGS, the transactions take place in batchesc)Under RTGS, all the transfers will be held up for a specific time while under NEFT, a transaction is completed on a one-to-one basisd)RTGS is suitable for transactions of large amounts requiring immediate transfer while NEFT is suitable for small-value transactions where there is no urgencyCorrect answer is option 'D'. Can you explain this answer?, a detailed solution for What is the difference between RTGS and NEFT as electronic methods of remitting funds in the banking industry?a)There is no limit on the value/amount of funds to be transferred via RTGS, however, only funds up to Rs. 10,000 can be remitted through NEFTb)Under NEFT, the transactions are completed as and when they arise during working hours while in RTGS, the transactions take place in batchesc)Under RTGS, all the transfers will be held up for a specific time while under NEFT, a transaction is completed on a one-to-one basisd)RTGS is suitable for transactions of large amounts requiring immediate transfer while NEFT is suitable for small-value transactions where there is no urgencyCorrect answer is option 'D'. Can you explain this answer? has been provided alongside types of What is the difference between RTGS and NEFT as electronic methods of remitting funds in the banking industry?a)There is no limit on the value/amount of funds to be transferred via RTGS, however, only funds up to Rs. 10,000 can be remitted through NEFTb)Under NEFT, the transactions are completed as and when they arise during working hours while in RTGS, the transactions take place in batchesc)Under RTGS, all the transfers will be held up for a specific time while under NEFT, a transaction is completed on a one-to-one basisd)RTGS is suitable for transactions of large amounts requiring immediate transfer while NEFT is suitable for small-value transactions where there is no urgencyCorrect answer is option 'D'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice What is the difference between RTGS and NEFT as electronic methods of remitting funds in the banking industry?a)There is no limit on the value/amount of funds to be transferred via RTGS, however, only funds up to Rs. 10,000 can be remitted through NEFTb)Under NEFT, the transactions are completed as and when they arise during working hours while in RTGS, the transactions take place in batchesc)Under RTGS, all the transfers will be held up for a specific time while under NEFT, a transaction is completed on a one-to-one basisd)RTGS is suitable for transactions of large amounts requiring immediate transfer while NEFT is suitable for small-value transactions where there is no urgencyCorrect answer is option 'D'. Can you explain this answer? tests, examples and also practice Banking Exams tests.
Explore Courses for Banking Exams exam

Top Courses for Banking Exams

Explore Courses

Suggested Free Tests

Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev
Get App
© EduRev
Education Revolution
Signup to see your scores go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup