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Real Time Gross Settlement
Definition:
Gross settlement of payment instructions one by one in which processing and settlement take place in real time (continuously).
Details:
The most well known examples for infrastructure payment systems that implement this type of settlement are the so called:
- Real Time Gross Settlement (RTGS) systems: the top level payment systems used directly only by the licensed banks in a country.
- Instant Payment System (IPS) systems: retail level real time payment systems used directly by any retail client of a commercial bank enrolled in IPS.
Note:
This is a series of posts with definitions for the jargon used in #banking, #fintech and #payments.
Too many people use some terms without understanding them beyond the definition.
Too many “experts” use the terms but they never had experience with the actual implementation of anything in #banking, #fintech and #payments.