Digital Banking & Payments
Topics in this cluster
Mapped Master Direction families
Payment & Settlement Systems 176 docs
Authorisation and oversight of payment systems, UPI, PPIs & cards.
Consumer Protection 13 docs
Customer service, grievance redress & the ombudsman scheme.
Latest in this cluster
Publishing in progress…
Key explainers across this cluster
- RTGS vs NEFT — how the RBI's two main fund-transfer systems differ.
- Repo rate vs reverse repo rate — the RBI's policy-rate corridor and Liquidity Adjustment Facility.
- CRR vs SLR — the two reserve requirements banks must maintain, explained.
Key comparisons bankers search for
Side-by-side plain-English answers to the highest-intent “X vs Y” banking questions, each cross-linked to the glossary definitions and the official RBI rules in our Master Direction crosswalk. under the editorial review of Vikram Jain.
What is the difference between the repo rate and the reverse repo rate?
The repo rate is the rate at which the RBI lends short-term funds to banks against government securities, injecting liquidity and acting as the main policy rate. The reverse repo rate is the rate at which banks park surplus funds with the RBI, absorbing liquidity, and is set below the repo rate. In short, repo = RBI lends to banks; reverse repo = banks lend to the RBI. Since 2022 the Standing Deposit Facility (SDF) has been the RBI’s main liquidity-absorption tool. See the RBI rules in the Financial Markets Regulation crosswalk.
What is the difference between NEFT and RTGS?
Both are RBI-operated electronic fund-transfer systems, but they settle differently. NEFT (National Electronic Funds Transfer) settles in half-hourly batches and has no minimum amount, so it suits everyday retail transfers. RTGS (Real Time Gross Settlement) settles each transaction individually and instantly and is meant for high-value transfers of ₹2 lakh and above. Both now run 24x7. See the RBI rules in the Payment & Settlement Systems crosswalk.
What is the difference between FDI and FPI?
Foreign Direct Investment (FDI) is a lasting, control-oriented stake a foreign investor takes in an Indian business — typically equity with a say in management — and is ‘patient’ capital governed by the FDI policy and FEMA. Foreign Portfolio Investment (FPI) is investment by a registered foreign investor in Indian listed securities without control, is far more liquid and volatile, is capped per investor below the FDI threshold, and is regulated by SEBI alongside FEMA. In short, FDI buys influence in a company; FPI buys tradeable exposure to the market. See the RBI rules in the Foreign Exchange (FEMA) crosswalk.