Real-time gross settlement

Real-time gross settlement systems (RTGS) are specialist funds transfer systems where transfer of money or
securities[1] takes place from one bank to another on a
real time and on "gross" basis. Settlement in real time
means payment transaction is not subjected to any waiting period. The transactions are settled as soon as they
are processed. Gross settlement means the transaction
is settled on one to one basis without bundling or netting
with any other transaction. Once processed, payments
are nal and irrevocable.

tions are adjusted. The implementation of RTGS systems

by central banks throughout the world is driven by the
goal to minimize risk in high-value electronic payment
settlement systems. In an RTGS system, transactions are
settled across accounts held at a central bank on a continuous gross basis. Settlement is immediate, nal and
irrevocable. Credit risks due to settlement lags are eliminated. The best RTGS national payment system cover
up to 95% of high-value transactions within the national
monetary market.

RTGS systems are typically used for high-value transactions that require immediate clearing. In some countries
the RTGS systems may be the only way to get same day
cleared funds and so may be used when payments need
to be settled urgently. However, most regular payments
would not use a RTGS system, but instead would use a
national payment system or network that allows participants to batch and net payments.

The World Bank has been paying increasing attention

to payment system development as a key component of
the nancial infrastructure of a country, and has provided various forms of assistance to over 100 countries.
Most of the RTGS systems in place are secure and have
been designed around international standards and best
practices.[3] Several reasons exist for central banks for
RTGS adoption decisions to include counterparts in the
system. First, a decision to adopt is inuenced by competitive pressure from the global nancial markets. Second, it is more benecial to adopt an RTGS system for
central bank when this allows access to a broad system of other countries RTGS systems. Third, it is very
likely that the knowledge acquired through experiences
with RTGS systems spills over to other central banks and
helps them make their adoption decision. Fourth, central banks do not necessarily have to install and develop
RTGS themselves. The possibility of sharing development with providers that have built RTGS systems in
more than one country (Logica CMG of UK, CMA Small
System of Sweden, JV Perago of South Africa and SIA
SpA of Italy, Montran of USA) has presumably lowered
the cost and hence made it feasible for many countries to
adopt.[4] By 1985, three central banks had implemented
RTGS systems. At the end of 2005, the use of RTGS
systems had spread to 90 central banks.[5]

RTGS systems are usually operated by a countrys central

bank as it is seen as a critical infrastructure for a countrys
economy. Economists believe that an ecient national
payment system reduces the cost of exchanging goods
and services, and is indispensable to the functioning of
the interbank, money, and capital markets. A weak payment system may severely drag on the stability and developmental capacity of a national economy; its failures can
result in inecient use of nancial resources, inequitable
risk-sharing among agents, actual losses for participants,
and loss of condence in the nancial system and in the
very use of money.[2]

Central banks and RTGS

This electronic payment system is normally maintained

or controlled by the central bank of a country. There is
no physical exchange of money; the central bank makes
adjustments in the electronic accounts of Bank A and
Bank B, reducing the balance in Bank As account by the 2 Systems in Europe covering mulamount in question and increasing the balance of Bank
tiple countries
Bs account by the same. The RTGS system is suited for
low-volume, high-value transactions. It lowers settlement
risk, besides giving an accurate picture of an institutions TARGET2
account at any point of time. Such systems are an alternative to systems of settling transactions at the end of the
day, also known as the net settlement system such as the
UKs BACS system. In the net settlement system, all the 3 Existing systems
inter-institution transactions during the day are accumulated. At the end of the day, the accounts of the institu- Below is a listing of countries and their RTGS systems:
1

EXISTING SYSTEMS

Albania - AECH, RTGS

Jordan - RTGS-JO

Angola - SPTR, (Sistema de pagamentos em tempo

real)

Kenya - Kenya Electronic Payment and Settlement

System (KEPSS)

Azerbaijan - AZIPS (Azerbaijan Interbank Payment

System)

Korea - BOK-WIRE+ (The Bank of Korea Financial Wire Network,

)

Australia - RITS (Reserve Bank Information and

Transfer System)

Kuwait - KASSIP (Kuwaits Automated Settlement

System for Inter-Participant Payments)

Barbados - Central Bank Real Time Gross Settlement System (CBRTGS)

Lebanon - BDL-RTGS (Real Time Gross Settlement System)[12]

Bosnia and Herzegovina - RTGS

Macedonia - MIPS (Macedonian Interbank Payment System)[13]

Bulgaria - RINGS (Real-time INterbank Grosssettlement System)

Brazil - STR (Sistema de Transferncia de Reservas)
Canada - LVTS (Large Value Transfer System)
(This is actually an RTGS Equivalent system. Final
settlement happens in the evening.)
China - China National Advanced Payment System (CNAPS) (also called Super Online Banking
System)[6]

Malawi - MITASS (Malawi Interbank Settlement

System)
Malaysia - RENTAS (Real Time Electronic Transfer
of Funds and Securities)
Mexico - SPEI (Spanish: Sistema de Pagos
Electrnicos Interbancarios)[14]
Morocco - SRBM (Systme de rglement brut du
Maroc)

Chile - LBTR/CAS (Spanish: Liquidacin Bruta en

Tiempo Real)

Namibia - NISS (Namibia Inter-bank Settlement

System)

Croatia - HSVP (Croatian: Hrvatski sustav velikih

plaanja)[7]

New Zealand - ESAS (Exchange Settlement Account System)

Czech Republic - CERTIS (Czech Express Real

Time Interbank Gross Settlement System)

Nigeria - CIFTS (CBN Inter-Bank Funds Transfer

System)

Egypt - RTGS

Pakistan - Pakistan Real Time Inter-Bank Settlement Mechanism - PRISM (State Bank of Pakistan)

Eurozone - TARGET2
Fiji - FIJICLEAR

Peru - LBTR (Spanish:

Tiempo Real)

Hong Kong - Clearing House Automated Transfer

System (CHATS)

Philippines - PhilPaSS

Hungary - VIBER (Hungarian: Vals Idej Brutt

Elszmolsi Rendszer)
Georgia - GPSS (Georgian Payment and Securities
System)
India - RTGS,[8] NEFT, IMPS[9]
Indonesia - Sistem Bank Indonesia Real Time Gross
Settlement (BI-RTGS)
Iran - SATNA ( , RealTime Gross Settlement System)
Iraq - RTGS (Real Time Gross Settlement
System)[10]
Japan - BOJ-NET (Bank of Japan Financial Network System)[11]

Liquidacin Bruta en

Poland - SORBNET and SORBNET2

Russia - BESP system (Banking Electronic Speed
Payment System)
Romania - ReGIS system
Saudi Arabia - (Saudi Arabian Riyal Interbank Express) SARIE
Singapore - MEPS+ (MAS Electronic Payment System Plus)
South Africa - SAMOS (The South African Multiple Option Settlement)
Spain - SLBE (Spanish: Servicio de Liquidacin del
Banco de Espaa)
Sri Lanka - LankaSettle (RTGS/SSSS)

3
Sweden - RIX (Swedish: Riksbankens system fr
verfring av kontofrda pengar)
Switzerland - SIC (Swiss Interbank Clearing)
Taiwan - CIFS (CBC Interbank Funds Transfer
System)
Tanzania - TIS (Tanzania interbank settlement system)

[9] http://www.npci.org.in/aboutimps.aspx
[10] Central Bank of Iraq website.
[11] Bank of Japan (2003). Payment systems in Japan
(PDF). Bank of Japan. Retrieved Jun 17, 2010.
[12] Central Bank of Lebanon website.
[13] National Bank of Macedonia website.
[14] Banxicos SPEI. Banco de Mexico.

Thailand - BAHTNET (Bank of Thailand

Automated High value Transfer Network)
Turkey - EFT (Electronic Fund Transfer)
Ukraine - SEP (System of Electronic Payments of
the National Bank of Ukraine)
United Kingdom - CHAPS (Clearing House
Automated Payment System)
United States - Fedwire
Zambia - ZIPSS-Zambian Inter-bank Payment and
Settlement System
Zimbabwe - ZETSS-Zimbabwe Electronic Transfer
and Settlement System

References

[1] Committee on Payment and Settlement Systems of the

central banks of the Group of Ten countries (March
1997). Real-Time Gross Settlement Systems (PDF).
Bank for International Settlements: 14.
[2] Biago Bossone and Massimo Cirasino, The Oversight of
the Payment Systems: A Framework for the Development and Governanace of Payment Systems in Emerging
Economies"The World Bank, July 2001, p.7
[3] Massimo Cirasino and Jose Antonio Garcia, Measuring
Payment System Development, The World Bank, 2008
[4] Morten Bech, Bart Hobijn, " Technology Diusion within
Central Banking: The Case of Real-Time Gross Settlement, Sta Report nj. 260, Federal Reserve Bank of
New York, Working Paper, September 2006, p. 1617
[5] Morten Bech, Bart Hobijn, Technology Diusion within
Central Banking: The Case of Real-Time Gross Settlement, Sta Report nj. 260, Federal Reserve Bank of
New York, Working Paper, September 2006, p. 2
[6] Chinas 'Super Online Banking System' Launches on
Monday. Business China. August 30, 2010. Retrieved
September 3, 2010.
[7] http://www.hnb.hr/platni-promet/
medubankovni-platni-statistika/hsvp/
h-sustav-velikih-placanja.htm
[8] The RTGS System Reserve Bank of India website

5 See also
Payment system

6 TEXT AND IMAGE SOURCES, CONTRIBUTORS, AND LICENSES

Text and image sources, contributors, and licenses

6.1

Text

Real-time gross settlement Source: https://en.wikipedia.org/wiki/Real-time_gross_settlement?oldid=701244072 Contributors: Pnm,

Tsavage, Timpo, Siroxo, Mrtrey99, Wk muriithi, CanisRufus, El C, Phil websurfer@yahoo.com, Chbarts, Laug, Magicwombat, Jackeapen, Novacatz, GregorB, Ceefour, Yabbadab, Closedmouth, KelvinMo, Savidan, Kukini, DouglasCalvert, HongQiGong, CmdrObot,
Randhirreddy, Cydebot, Future Perfect at Sunrise, Qwyrxian, Arsenikk, Ph.eyes, Albany NY, GurchBot, Severo, Shadowphrogg32642342,
Tadpole9, Bongomatic, Gs, Naveenpf, Lukejmorrison, Limbergchero, Chhoton, Mj92, AlleborgoBot, Haardik, Ruzbehraja, Matt.ellis,
Sanya3, OKBot, Ashishsheth, Mild Bill Hiccup, Niceguyedc, Nchoonga, Dthomsen8, Antiselfdual, Addbot, CarsracBot, Jsf8204, Yobot,
AnomieBOT, Gaga.vaa, Dinesh smita, Materialscientist, Xqbot, GrouchoBot, Ennio morricone, FrescoBot, BenzolBot, Jschnur, Asheikh73,
Cnwilliams, Mubashir wasi, Reach tanvir, Miracle Pen, Onel5969, Sargdub, Skalmier, Flo sibiu, Baruchim, ChuispastonBot, EdoBot,
Winodhello, ClueBot NG, Strike Eagle, BG19bot, MKar, La coince, Dhavalshah 83, Nikos 1993, Pethume, Bassel.lloyd.dada, BattyBot,
Pratyya Ghosh, Fraulein451, ChrisGualtieri, Senshamit, Khanbilalahmed, Xxnerdzillaxx, Freerare, Jamesmcmahon0, Zotezangu, Vadoodh,
Berenger.dulac, Herathb, Eyesark, BethNaught, CrystelD, Jppunnett, Pralabh sharma, KirinXHell and Anonymous: 118

6.2

Images

6.3

Content license

Creative Commons Attribution-Share Alike 3.0