Question

Roop visits her bank to transfer ₹50,000 electronically into her husband’s account. At the bank she fills up the RTGS form and presented it along with the necessary cash to the bank employee at the counter for immediate action. But to her surprise, the bank employee informs her that in this case, she cannot avails RTGS facility. But there is an alternate electronic bank transfer method available to her.                                                                                                            (a) Why do you think, the bank refused to transfer funds on behalf of Roop through RTGS facility? (b) What is the alternative electronic bank transfer method being referred to in the above lines and why? (c) What is the type of bank referred in above paragraph? Also mention one more type of bank.​

Answer 1

Explanation:

NEFT, RTGS and IMPS are the three methods by which one can transfer funds through mobile, internet banking

IMPS is a real-time payment service that is available round the clock, including on holidays

In September 2019, about 1.11 billion transactions, at a value of ₹4.70 trillion, were conducted through mobile banking in India. A bulk of these transactions involve transfer of funds. There are three methods through which you can transfer funds through mobile banking—National Electronic Funds Transfer (NEFT), Real Time Gross Settlement (RTGS) and Immediate Payment Service (IMPS). We tell you what these are and how you can transfer funds using them.