Question : The process of transferring funds from one bank account to another electronically is called:
Option 1: Cheque
Option 2: RTGS
Option 3: NEFT
Option 4: Demand draf
Correct Answer: NEFT
Solution : The correct answer is (c) NEFT (National Electronic Funds Transfer).
NEFT is a popular electronic funds transfer system in India that allows individuals, firms, and corporates to transfer funds from one bank account to another in a secure and efficient manner. It operates on a deferred net settlement basis, where transactions are settled in batches at scheduled intervals throughout the day. NEFT is widely used for both high-value and low-value transactions, and it is available for individuals and businesses across all banks in India.
