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A payment system in which transfers between participating financial institutions are completed individually in real time rather than offset in a later batch.
Save conceptReal-Time Gross Settlement describes how money moves between participating financial institutions. Real time means the system processes eligible instructions during its operating hours without waiting for a later scheduled batch. Gross means each transfer is completed for its full amount rather than combined with opposite-direction payments into a smaller net obligation.
Participants send payment instructions and use balances in the system to meet the transfer. Jamaica’s JamClear RTGS is owned and operated by the Bank of Jamaica. It processes large-value and time-critical payments on participants’ accounts held at BOJ. Payments completed in that system are final and irrevocable; the customer-facing service is supplied through the participating institution.
Hypothetically, a business asks its bank to make an eligible urgent payment to a supplier at another bank. The sending institution submits an instruction, and the appropriate interbank balances move for that payment individually. The receiving bank must also handle the customer-account credit under its own procedures. This scenario illustrates the sequence without claiming a particular fee or completion time.
RTGS is different from a mobile or a payment terminal at a shop. Those are ways a customer may access payment services; RTGS is infrastructure used by financial institutions. Real-time interbank processing also does not mean that every customer-facing request is available around the clock or free of charges. Operating hours, valid instructions and each bank’s procedures remain relevant.
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