Question
Download Solution PDFWhich of the following statements are correct?
A. NEFT allows the customer to transfer funds with a maximum limit of Rs. 3,00,000 per day
B. IMPS allows to transfer funds in an Insta Payment Mode
C. The minimum limit to transfer funds via RTGS is Rs. 2,50,000
D. Instant Real Time Payment System developed by National Payment Corporation of India is UPI
E. For clearing of cheques under Positive Pay System (PPS), the minimum limit is Rs. 50,000
Choose the correct answer from the options given below:
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFThe correct answer is B and D only.
Key Points
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NEFT (National Electronic Funds Transfer):
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It is a nationwide system that facilitates individuals, firms, and corporates to electronically transfer funds from any bank branch to any individual, firm, or corporate having an account with any other bank branch in the country.
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There is no limit on the amount that could be transferred using NEFT as per Reserve Bank of India. The amount is transferred in batches instead of real-time.
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IMPS (Immediate Payment Service):
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IMPS is an instant interbank electronic funds transfer system.
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It operates 24/7 which means you can transfer funds at any time, on any day.
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This instant nature of payment supports the statement "IMPS allows to transfer funds in an Insta Payment Mode".
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RTGS (Real Time Gross Settlement):
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This is primarily for large value transactions. The minimum amount to be remitted through RTGS is ₹2,00,000 with no upper or maximum ceiling.
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It happens in real-time which means the transfer of money happens instantly.
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UPI (Unified Payments Interface):
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It's a mobile platform that enables money transfer between any two bank accounts using a smartphone.
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UPI allows a customer to make payments directly from their bank account to different merchants without the hassle of typing out card details, or net banking, or IFSC code.
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UPI does support the statement "Instant Real Time Payment System developed by National Payment Corporation of India is UPI" because it provides real-time transfer of funds between bank accounts.
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Positive Pay System (PPS):
- PPS is a fraud detection tool. It is a process of reconfirming key details of large-value cheques.
- Under this system, the issuer of the cheque submits electronically, through channels like SMS, mobile app, internet banking, ATM, etc., certain minimum details of that cheque like date, name of the beneficiary, payee, amount, etc., to the drawee bank.
- The limit for cheques under PPS is for value ₹50,000 and above.
Last updated on Jun 6, 2025
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