Real Time Gross Settlement

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Real Time Gross Settlement

An online system allowing the instantaneous transfer of funds and securities between banks. Real time gross settlement exists to settle large transactions between banks so that they can continue to extend credit to each other and to customers. Examples include the fed wire in the United States and CHAPS in the United Kingdom.
References in periodicals archive ?
Bank Indonesia plans to launch the RTGS sometime later this year.
A RTGS system is a critical component of a nation's economic infrastructure, helping to prevent systemic failure of the banking system.
The RTGS system is designed to forestall a chain reaction of defaults on the debts of banks -- even when a bank defaults on a debt to another bank -- whose solvency may be seriously undermined by the default.
In systemically important payments systems such as RTGS systems, instructions between banks are processed and settled individually as they occur in real time.
While the RTGS system has not specified a maximum limit, a minimum limit of INR200,000 has been set to make use of the fund transfer system.
The central bank will conduct an RTGS simulation test with financial institutions on a given day in mid-December on the assumption that such bonds have been floated on the day.
On a review, it has been decided to expand the sub-membership route to enable all licensed banks to participate in NEFT and RTGS systems,' RBI said.
According to the Central Bank of Sri Lanka, with this RTGS initiative, it plans to implement a world-class national payments infrastructure for Sri Lanka.
The central bank had first implemented Logica's RTGS system in 2004 to settle payments in Chilean Pesos.
PAYplus RTGS is a fully integrated, multi-currency payment system that automates Real Time Gross Settlement (RTGS) payments processing, S.
PAYplus RTGS now is firmly established as the Real Time Gross Settlement payment system of choice for new initiatives within international banking," said Reuven Ben-Menachem, chairman and chief executive officer, Fundtech.