1. In National Electronic Fund Transfer (NEFT), the transaction happens in batches and hence it is slow
2. In Real-Time Gross Settlement(RTGS), transactions happen in real time and hence being fast
3. There is no minimum limit in RTGS
4. There is a Rs 2 Lakh minimum limit for NEFT
How many of the above Statement/s is/are correct?
NEFT and RTGS: Understanding Fund Transfer Statements
This question asks us to evaluate the correctness of four statements concerning the National Electronic Fund Transfer (NEFT) and Real-Time Gross Settlement (RTGS) systems, which are crucial methods for transferring funds electronically in India.
Statement Analysis
Let's examine each statement individually:
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Statement 1: In National Electronic Fund Transfer (NEFT), the transaction happens in batches and hence it is slow
This statement is correct. NEFT operates on a deferred net settlement basis. Transactions are accumulated in batches and processed at specific intervals (e.g., hourly, half-hourly). This batch processing means funds are not transferred instantaneously, leading to a slightly longer processing time compared to real-time systems.
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Statement 2: In Real-Time Gross Settlement (RTGS), transactions happen in real time and hence being fast
This statement is correct. RTGS is designed for large-value transactions. As the name suggests, settlements occur individually ('gross settlement') and continuously throughout the business day ('real-time'). This makes RTGS significantly faster than NEFT, as transactions are processed immediately upon instruction.
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Statement 3: There is no minimum limit in RTGS
This statement is incorrect. RTGS transactions are typically for high-value amounts. There is a minimum transaction limit, which is currently set at Rs 2 Lakh. There is no maximum limit.
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Statement 4: There is a Rs 2 Lakh minimum limit for NEFT
This statement is incorrect. NEFT is suitable for smaller value transactions. Unlike RTGS, NEFT does not have a prescribed minimum transaction limit. However, there is a maximum limit per transaction, typically Rs 50 Lakh, although specific bank limits may vary.
Conclusion on Correct Statements
Based on the analysis:
- Statement 1 is correct.
- Statement 2 is correct.
- Statement 3 is incorrect.
- Statement 4 is incorrect.
Therefore, exactly two statements (Statement 1 and Statement 2) are correct.
Final Answer Determination
The question asks for the number of correct statements among the four provided. Since only statements 1 and 2 are correct, the total number of correct statements is two.
Comparing this result with the given options:
- Option 1: Only one statement
- Option 2: Only two statements
- Option 3: Only three statements
- Option 4: All the four statements
The correct option is the one indicating that only two statements are correct.
Important Questions from Economic development
- Below mentioned are four countries having largest Foreign Exchange Reserves in the world in October 2024. Arrange these countries in decreasing order of their Foreign Exchange Reserves.
i. India
ii. Japan
iii. China
iv. Switzerland
Choose the correct order: - Arrange the following sources of revenue for the Government of India mentioned in the Union Budget of 2024-25 in descending order:
i. Goods & Service Tax & other taxes
ii. Borrowing and Other Liabilities
iii. Corporation tax
iv. Income Tax
Choose the correct answer: - The FRBM (Fiscal Responsibility and Budget Management) framework mandates the Central Government to limit the Central Government Debt and the General Government Debt by $31^{st}$ March 2025. What are the limits of the Central Government Debt and the General Government Debt, respectively?
- Consider the following statements regarding the "Monetary Policy Committee".
i. The RBI Governor has to vote both in the first instance and in case of a tie.
ii. The monetary policy committee has to meet three times a year.
Choose the correct answer: - "Quotas are the building blocks of the IMF's financial and governance structure. An individual member country's quota broadly reflects its relative position in the world economy". In the above context, which of the following parameters are used to calculate quota?
i. GDP of the country
ii. Degree of Openness
iii. Demographic dividend
iv. Economic variability
v. International Reserves
Choose the correct answer based on the code given below:
