History and Advances in RGTS (Real-Time Gross Settlement)
- Mid-20th Century – Emergence of early electronic payment systems, laying the foundation for RTGS.
- 1970s – 1980s – Rise of electronic funds transfer (EFT) systems, although they operated in batches and lacked real-time settlement.
- 1980s – 1990s – Development of the concept of RTGS for real-time and individual settlement of high-value transactions.
- 1990s – Implementation of RTGS systems in various countries to cater to high-value transactions like interbank transfers and securities settlements. Early adopters include the United States, the United Kingdom, and Canada.
- 1999 – Launch of TARGET (Trans-European Automated Real-time Gross settlement Express Transfer System) by the European Central Bank (ECB) for euro-denominated cross-border payments within the Eurozone.
- 2000s – 2010s – Global expansion of RTGS systems as more countries and regions adopt them to modernize payment infrastructures.
- Advancements in Technology Incorporation of internet technology, real-time data processing, and security enhancements to improve the capabilities of RTGS systems.
- Integration with Other Payment Systems Integration of RTGS with various payment systems to provide a comprehensive payments ecosystem.
- Ongoing Evolution and Regulatory Changes Continuous evolution of RTGS systems to meet changing financial industry needs, with regulatory oversight ensuring security and stability.
RTGS Full Form – Real-Time Gross Settlement
RTGS Full Form: RTGS (Real-Time Gross Settlement) is a system used by banks to transfer money or securities from one bank to another on a “real-time” and on a “gross” basis. This means the transactions are completed instantly, without waiting for any batching process, and the settlement of funds is done individually on an order by order basis. It plays an important role in contemporary financial systems by facilitating high-value, interbank transactions efficiently and securely.
In this article, we have provided the RTGS full form, is history, characteristics, features, advantages and drawbacks.