Real time gross settlement (RTGS) is a type of payment system that enables money to be transferred from one bank account to another. The system allows for instant transactions at the same time that payments are received in the recipient bank account, and transactions can be sent in either direction. This makes RTGS a very efficient way to transfer funds between banks, resulting in faster and more efficient settlements through existing payment systems around the world, especially internationally. RTGS is also used by governments, such as Canada's Canadian Payments Association Network (CPAnet), which not only uses RTGS but also conducts online real-time operations such as direct debits and e-money transfers on behalf of its members who have adopted it.
