Definition
RTGS
A funds transfer system where the transfer of money takes place from one bank to any other bank on a “real-time“ and on a “gross” basis (no bundling or netting).
Settlement is immediate, final and irrevocable. Credit risks due to settlement lags are eliminated.
RTGS is an alternative to net settlement system.
History
The first RTGS system is the US Fedwire system.
影响
RTGS systems are usually operated by a country’s central bank as it is seen as a critical infrastructure for a country’s economy.
an efficient national payment system reduces the cost of exchanging goods and services
Operation
- does not require physical exchange of money
- central bank makes adjustments in the accounts of Bank A and Bank B
- is suited for low-volume, high-value transactions
Some RTGS names
- China —— China National Advanced Payment System (CNAPS)
- US —— Fedwire
- UK —— CHAPS (Clearing House Automated Payment System)
- Singapore —— MEPS+ (MAS Electronic Payment System Plus)
- Hong Kong —— Clearing House Automated Transfer System (CHATS)
- Philippines —— PhilPaSS
- Thailand —— BAHTNET (Bank of Thailand Automated High Value Transfer Network)