RTGS (Real Time Gross Settlement)
A high-value funds transfer system settling payments in real time.
Detailed Description
RTGS (Real Time Gross Settlement)
What does RTGS stand for?
RTGS stands for Real Time Gross Settlement.
How does RTGS differ from ACH?
RTGS settles transactions instantly, while ACH processes them in batches, which can take hours or days.
What are the primary benefits of using RTGS?
The primary benefits include immediate settlement, reduced credit risk, and enhanced security.
Who typically oversees RTGS systems?
RTGS systems are usually overseen by central banks and financial regulatory authorities.
What challenges do RTGS systems face?
Challenges include high operational costs, potential congestion during peak times, and counterparty risk.