Economics • Banking & FinanceMedium
In the context of Indian banking, what does 'NEFT' stand for, and what is its operational settlement characteristic?
A. National Electronic Funds Transfer, settled on an immediate real-time gross basis
B. National Electronic Funds Transfer, settled in batches at specific intervals during working hours✓ Correct Answer
C. National Equity Funding Trust, settled once every week
D. New Electronic Finance Transaction, settled overnight
💡 Solution & Explanation
National Electronic Funds Transfer operates on a deferred net settlement basis where transactions are processed and bundled in half-hourly batches during designated working hours. Systems like Real Time Gross Settlement process high-value transfers instantaneously on an individual basis.
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