Real-Time Gross Settlement (RTGS)
What is Real-Time Gross Settlement (RTGS)?
Real-Time Gross Settlement is a specialist funds transfer system where the transfer of money takes place from one bank to another on a real-time and gross basis. Settlement in “real-time” means the transaction is processed as soon as it is received, and “gross” means it is handled individually.
Why It Matters
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It eliminates settlement risk for high-value transactions by ensuring immediate finality.
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It provides the backbone for national and international payment systems.
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It improves the overall stability of the financial system by reducing interbank credit risks.
