Real Time Gross Settlement Systems
From Open Risk Manual
Definition
Real-Time Gross Settlement Systems. (RTGS) They are fund transfer systems designed to move high-value and wholesale payments between financial institutions instantly. RTGS are usually controlled by the central bank of a nation. Payments made via the RTGS are settled as soon as they are processed, and once processed, payments are final and irrevocable. Since with these payments there are high values involved, they do not need to be netted or bundled, meaning that the transaction is settled on a one-to-one basis in real time.
