User:Bongomatic/Inter-bank Settlement

Inter-bank settlement is the process by which funds are transferred from one bank to another.


 * only transfer funds in the domicile in which a branch resides
 * may be transferred in real time (RTGS) on an on-demand (push) basis
 * may be transferred in batches on a periodic basis, which is generally done on a net
 * may be transferred as a net amount vis-a-vis another financial instiution on a periodic bais (net settlement system)

RTGS

Real-time gross settlement systems have become the norm thoughout in sophisticated financial centers. "Real-time" refers to the nature of each payment, which in a real-time system, is effected immediately (and irrevocably) upon being confirmed by the remitting bank. [Something about balance checking, reserve banking?]. "Gross" refers to to the amount of each payment, which is the gross amount of a payment for a particular purpose, rather than a net amount accoutning for multiple transactions over a period (being both sent and received) between two banks.

Net settlement systems.

http://www.bis.org/cpss/index.htm