EFT in India
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Principles and Practices of Banking — JAIIB.
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Free sample — 8 of 66 rapid-fire Q&A cards.
What does EFT stand for in the context of Indian banking?
EFT stands for Electronic Funds Transfer, referring to the electronic movement of money from one bank account to another without any physical exchange of currency.
What is the primary objective of Electronic Fund Transfer systems in India?
To transfer funds electronically between bank accounts securely.
Which was India's first EFT system introduced by the Reserve Bank of India?
The Reserve Bank of India introduced the Electronic Funds Transfer (EFT) system in 1995, which was later replaced by the National Electronic Funds Transfer (NEFT) system.
Which year was RTGS system launched in India?
RTGS was launched in India in 2004.
What is NEFT and when was it launched in India?
NEFT (National Electronic Funds Transfer) is a nation-wide payment system facilitating one-to-one funds transfer, launched by RBI in November 2005 to replace the earlier EFT system.
What is the maximum transaction limit for RTGS transfers?
There is no upper limit for RTGS transactions.
On what basis does NEFT settle transactions?
NEFT settles transactions on a deferred net settlement (DNS) basis in hourly batches, where transactions are processed in batches rather than individually in real time.
On what basis does RTGS settle transactions?
RTGS settles transactions on a real-time gross settlement basis.
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