What is RTGS?#
RTGS systems process transactions immediately upon receipt on a gross basis without netting against other payments, providing guaranteed finality backed by central banks.
Everyday Analogy#
Wiring a direct, registered bank transfer for the purchase of a commercial skyscraper where funds transfer definitively without overnight waiting periods.
Practical Applications#
- High-value interbank foreign exchange settlements
- Real-time central bank liquidity monitoring