RTGS

Real-Time Gross Settlement

RTGS is a funds transfer system where money moves from one bank to another on a real-time and gross basis, meaning each transaction is settled individually without netting against other transactions.

RTGS systems are typically used for high-value, time-sensitive payments. Examples include Fedwire in the US, CHAPS in the UK, and TARGET2 in the Eurozone. These systems minimize settlement risk by providing immediate finality. Examples include systems like MEPS+ in Malaysia.

Related Terms

Fedwire

Federal Reserve Wire Network

Fedwire is a real-time gross settlement (RTGS) system operated by the Federal Reserve Banks for high...

CHAPS

Clearing House Automated Payment System

CHAPS is a UK RTGS payment system used for high-value, same-day sterling payments. It's typically us...

Wire Transfer

A wire transfer is an electronic transfer of funds between banks or financial institutions. Wire tra...

CHIPS

Clearing House Interbank Payments System

CHIPS is a private sector clearing and settlement system for large-value wire transfers and payments...

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