2025 GS Paper I, all questions

UPSC Prelims 2025 · GS Paper I

Question 68: Economy and Social Development

Consider the following statements in respect of RTGS and NEFT :

  1. IIn RTGS, the settlement time is instantaneous while in case of NEFT, it takes some time to settle payments.
  2. IIIn RTGS, the customer is charged for inward transactions while that is not the case for NEFT.
  3. IIIOperating hours for RTGS are restricted on certain days while this is not true for NEFT.

Which of the statements given above is/are correct?

aI only
bI and II
cI and III
dIII only

AnswerThe answer is (a).

RTGS settles each payment individually and in real time, so the money moves almost at once, while NEFT settles in half-hourly batches and so takes some time; Statement I is correct. The RBI does not allow banks to charge customers for inward transactions in either system, so Statement II is wrong. Both RTGS and NEFT now run round the clock on all days of the year, so Statement III, about restricted hours for RTGS, is wrong. Remember: RTGS is real time, NEFT is batch.

  • I. RTGS settles in real time; NEFT settles in batches.
  • II. Customers are not charged for inward transactions in either system.
  • III. RTGS now operates 24x7 on all days, like NEFT.

How you could have got this

  1. If you were sure statement II is not correct, (b) goes: it includes II.

    What you needed to know: Customers are not charged for inward transactions in either system.

  2. Then, if you were sure statement III is not correct, (c) and (d) go: each of them includes III.

    What you needed to know: RTGS now operates 24x7 on all days, like NEFT.

Only (a) is left. You didn’t need statement 1.

This follows an unofficial answer: UPSC has not published its key for this year, and if that answer is wrong, so is this path.

Which options go is worked out from UPSC’s key and the options, not by a model.

Why each option is right or wrong
  • (a) Right: only the difference in settlement time holds.
  • (b) Wrong: inward transactions are not charged to customers in RTGS.
  • (c) Wrong: RTGS operating hours are not restricted now.
  • (d) Wrong: both RTGS and NEFT operate round the clock.

Explanation: written by UPSC Grade, not by UPSC.

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Source: UPSC, Civil Services (Preliminary) Examination 2025, General Studies Paper I, Series A. The paper on upsc.gov.in.