GK
BANKING AWARENESS AND SEBI
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Various deposit products
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Cheque truncation process
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Electronic fund transfer from bank to bank
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Electronic payment products within a bank
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Detailed explanation-1: -Key Takeaways. NEFT stands for National Electronic Funds Transfer whereas RTGS is short for Real-Time Gross Settlement. NEFT is a payment system where the settlement of funds takes place in half-hourly batches. RTGS a payment system of continuous and real-time settlement of fund transfers.
Detailed explanation-2: -The acronym ‘RTGS’ stands for Real Time Gross Settlement, which can be defined as the continuous (real-time) settlement of funds transfers individually on an order by order basis (without netting).
Detailed explanation-3: -NEFT stands for National Electronic Funds Transfer. Started in November 2005, NEFT is an electronic funds transfer system set up and managed by the Reserve Bank of India. NEFT allows the online transfer of funds from one NEFT-enabled bank account to another.
Detailed explanation-4: -RTGS stands for Real-time Gross Settlement, meaning that through this method, the money is transferred from one bank account to the other in real-time, without any delay. RTGS works out as the best payment method if you need to transfer an amount equal to or more than Rs. 2 lakh in real time.