BANKING AFFAIRS

Detailed explanation-1: -RTGS system is a funds transfer mechanism where transfer of money takes place from one bank to another on a “real time” and on “gross” basis. This is the fastest possible money transfer system through the banking channel. Settlement in “real time” means payment transaction is not subjected to any waiting period.

Detailed explanation-2: -Ans: Individuals, firms and corporates maintaining accounts with any member bank, participating in the NEFT system, can electronically transfer funds to any individual, firm or corporate having an account with any other bank in the country participating in the NEFT system.

Detailed explanation-3: -It is a safe and secure system for funds transfer. RTGS transactions / transfers have no amount cap set by RBI. The system is available on all days on 24x7x365 basis. There is real time transfer of funds to the beneficiary account.

Detailed explanation-4: -Benefits of Using NEFT NEFT is available round the clock i.e., 24×7 and 365 days. Safe and secure fund transfer. There are no charges levied by RBI from banks. NEFT service can be used for a variety of transactions such as payment of credit card bills, payment of loan EMI, etc.

Detailed explanation-5: -NEFT, i.e. National Electronic Funds Transfer is an online facility that enables the transfer of funds from one financial institution to another. NEFT operates on Deferred Net Settlement (DNS) basis in which the transactions are settled in batches, i.e., all the transactions received till a particular time are netted.