Arrange the following by the year they became operational in India’s financial sector:
- Real-Time Gross Settlement (RTGS)
- National Electronic Funds Transfer (NEFT)
- Unified Payments Interface (UPI)
- Account Aggregator Framework
Show Answer & Explanation
Correct Answer: (A)
Explanation:
The correct chronological order (oldest to newest) for when these systems became operational is:
- (1) Real-Time Gross Settlement (RTGS): 2004
- (2) National Electronic Funds Transfer (NEFT): 2005
- (3) Unified Payments Interface (UPI): 2016
- (4) Account Aggregator Framework: 2021
Therefore, the correct sequence is (1), (2), (3), (4).
📚 Additional Info: Chronology of India’s Financial Systems
(1) Real-Time Gross Settlement (RTGS)
- Operational since: 2004
- Purpose: Introduced by RBI for high-value, instantaneous fund transfers.
- Key Fact: “Gross settlement” means transactions are settled one-to-one without bunching. It is primarily for transactions above ₹2 lakh.
(2) National Electronic Funds Transfer (NEFT)
- Operational since: 2005
- Purpose: Launched for smaller value, one-to-one fund transfers.
- Key Fact: Unlike RTGS, NEFT transactions are processed in half-hourly batches (though it is available 24/7 now).
(3) Unified Payments Interface (UPI)
- Operational since: 2016
- Developed by: National Payments Corporation of India (NPCI).
- Purpose: An instant, mobile-first payment system that allows users to transfer money between bank accounts using a Virtual Payment Address (VPA).
(4) Account Aggregator (AA) Framework
- Operational since: 2021 (Major launch).
- Purpose: An RBI-regulated system that allows users to securely and digitally share their financial data (bank statements, investments, etc.) between different regulated financial institutions.
- Key Fact: It is a “data-sharing” system, not a payment system. Its goal is to make accessing credit and financial services easier.