NEFT and RTGS

NEFT is a nation-wide centralised payment system owned and operated by the Reserve Bank of India.
It facilitates funds transfers from one bank account to another. One can access this service either by using Internet banking or by visiting the bank branch.
Once we initiate the transfer, the money reaches the beneficiary account within hours.
There is no limit on the minimum or maximum amount one can transfer, however, individual banks may put restrictions on a per transaction amount.

RTGS is a system where there is continuous and real-time settlement of fund-transfers.
‘Real Time’ means the processing of instructions at the time they are received; ‘Gross Settlement’ means that the settlement of funds transfer instructions occurs individually.
On the other hand, in NEFT, transactions received up to a particular time are processed in batches.
The RTGS system is primarily meant for large value transactions. The minimum amount to be remitted through RTGS is ₹ 2,00,000/- with no upper or maximum ceiling.

In 2019, with an aim to encourage digital transfer of funds, the RBI waived off all charges for transactions using NEFT and RTGS systems.
The RBI has also allowed round-the-clock transactions of the NEFT and RTGS systems throughout the year on all days, i.e., on a 24x7x365 basis.

The Real-Time Gross Settlement (RTGS) faced disruption of service recently.
The RBI said it was due to technical updates of the system which will enhance resilience of the RTGS system.

Today Current Affairs Upsc Exam Syllabus & Previous Yearpaper.