REMITTANCE PRODUCTS
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Retail Banking and Wealth Management — JAIIB.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
What is a remittance product in the context of retail banking?
A remittance product is a banking service that enables transfer of funds from one person or place to another, either within the country (domestic) or across borders (international), through instruments like demand drafts, NEFT, RTGS, IMPS, or money orders.
What is the minimum transaction limit for NEFT transfers as per RBI?
There is no minimum limit for NEFT transactions.
What does NEFT stand for and which body governs it?
NEFT stands for National Electronic Funds Transfer, and it is governed and operated by the Reserve Bank of India (RBI) as a nationwide payment system for electronic fund transfers between bank accounts.
How many settlement batches does NEFT operate on in a day?
NEFT operates on 48 half-hourly settlement batches daily.
What is the minimum and maximum transaction limit for RTGS transfers?
RTGS (Real Time Gross Settlement) has a minimum transaction limit of Rs. 2 lakh with no upper ceiling, making it suitable for high-value interbank and customer fund transfers settled in real time.
What is the minimum transaction amount for RTGS transfers?
The minimum RTGS transaction amount is Rs. 2 lakh.
How does RTGS differ from NEFT in terms of settlement?
RTGS settles transactions individually and in real time on a gross basis, whereas NEFT settles transactions in batches at defined hourly intervals, making RTGS faster for large-value transfers.
What does RTGS stand for in banking?
Real Time Gross Settlement.
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