With reference to RTGS and NEFT in India, consider the following statements: 1. RTGS transactions are settled individually on a real-time basis, whereas NEFT transactions are settled through a batch-based system. 2. RTGS has a prescribed minimum transaction amount, whereas NEFT does not have a prescribed minimum transaction amount. Which of the statements given above is/are correct? |ForumIAS

Q. With reference to RTGS and NEFT in India, consider the following statements:
1.RTGS transactions are settled individually on a real-time basis, whereas NEFT transactions are settled through a batch-based system.
2.RTGS has a prescribed minimum transaction amount, whereas NEFT does not have a prescribed minimum transaction amount.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: C

Notes:

Explanation: RTGS (Real Time Gross Settlement) settles transactions individually and in real time, while NEFT settles transactions through batches. RTGS has a minimum transaction amount of ₹2 lakh, whereas NEFT has no prescribed minimum transaction amount. Hence, both statements are correct.

Source- PIB

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