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Topic: NEFT System – National Electronic Funds Transfer

Number of Questions: 10

1. What is the Maximum amount per transaction for cash-based remittances through NEFT within India?
   A) Rs 10,000
   B) Rs 25,000
   C) Rs 50,000
   D) No Limit
   
   View answer

     Option C
   Explanation: Maximum amount per transaction is limited to ₹ 50,000/- for cash-based remittances within India and also for remittances to Nepal under the Indo-Nepal Remittance Facility Scheme.
2. What is the limit on amount transferred through NEFT?
   A) Rs 50,000
   B) Rs 2 lakhs
   C) Rs 10 lakhs
   D) No Limit
   
   View answer

     Option D
   Explanation: There is no minimum and maximum in NEFT as per RBI. However banks have fixed certain limits which is different for different banks.
3. NEFT system operates in batches of _____ interval.
   A) half hour
   B) hourly
   C) 15 mins
   D) 90 minutes
   
   View answer

   Option A
   Explanation: NEFT system operates in batches of half hour interval. It operates on Deferred Net Settlement (DNS) basis which settles transactions in batches.
4. There are how many settlement batches of NEFT in a day?
   A) 18
   B) 13
   C) 12
   D) 23
   
   View answer

   Option D
   Explanation: There are twenty three half-hourly settlement batches run from 8 am to 7 pm on all working days of week (Except 2nd and 4th Saturday of the month).
5. ______ is an alpha-numeric code that uniquely identifies a bank-branch participating in the NEFT system.
   A) MICR Code
   B) IFSC
   C) BSR Code
   D) Sol ID
   
   View answer

   Option B
   Explanation: IFSC or Indian Financial System Code is an alpha-numeric code that uniquely identifies a bank-branch participating in the NEFT system.
6. IFSC Code consists of ___ digits and its ___ digit is definitely Zero.
   A) 16 ; 8^th
   B) 11 ; 6^th
   C) 12; 6^th
   D) 11 ; 5^th
   
   View answer

   Option D
   Explanation: It is of 11 digit. First Four: alpha characters representing the bank; and the last 6 characters representing the branch. The 5th character is 0 (zero).
7. ________ is a message containing a batch of NEFT payment instructions for funds transfer.
   A) PFMS
   B) SFMS
   C) AEPS
   D) NFMS
   
   View answer

   Option B
   Explanation: Structured Financial Messaging Solution (SFMS) message: containing a batch of NEFT payment instructions for funds transfer, processed and consolidated in the manner specified for transmission of payment instructions.
8. NEFT is a ______
   A) Credit Push System
   B) Credit Pull System
   C) Both A and B
   D) Debit Pull System
   
   View answer

   Option A
   Explanation: Structured Financial Messaging Solution (SFMS) message: containing a batch of NEFT payment instructions for funds transfer, processed and consolidated in the manner specified for transmission of payment instructions.
9. What is the Penal Interest Rate for banks is NEFT deposit is not done on time?
   A) Repo rate + 1%
   B) CRR + 2%
   C) Repo Rate + 2%
   D) CRR + 1%
   
   View answer

   Option C
   Explanation: Penal Interest Rate for banks is NEFT deposit is not done on time: Repo Rate + 2%
10. NEFT operates on _____ basis.
    A) Real Time
    B) Deferred Net Settlement (DNS)
    C) Partly Settlement
    D) Gross Basis
    
    View answer

    Option B
    Explanation: NEFT system operates in batches of half hour interval. It operates on Deferred Net Settlement (DNS) basis which settles transactions in batches.

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