Fund transfer through RTGS and NEFT systems is set to become cheaper after the Reserve Bank of India...........

Finance changing landscape in banking sector

Fund transfer through RTGS and NEFT systems is set to become cheaper after the Reserve Bank of India decided it will not impose any charges on such transactions. After announcing its decision to waive all charges on fund transfer through RTGS and NEFT systems from July 1, the Reserve Bank of India (RBI) had also asked banks to pass on the benefits to customers from the same day.

Which of the following statements is false regarding the National Electronic Funds Transfer (NEFT) system?

There is no limit on transaction through NEFT.

NEFT operates in hourly batches.

NEFT is a payment system which facilitates one-to-one funds transfer.

Only bank branches which are NEFT enabled can be a part of the NEFT funds transfer network.

All of the above are correct.

Explanation:

NEFT is a nation-wide payment system facilitating one-to-one funds transfer which was launched in 2005. Individuals, firms and corporates maintaining account in the branch can electronically transfer funds. The Minimum & Maximum amount – No Limit. From July 10, 2017 settlements of fund transfer requests in NEFT system is done on half-hourly basis. There are twenty three half-hourly settlement batches run from 8 am to 7 pm on all working days of week (Except 2nd and 4th Saturday of the month). The Reserve Bank will make available the NEFT system on a 24×7 basis from December this year. This is expected to revolutionize the retail payments system of the country.