In RTGS, once the operator accepts an instruction, it confirms that the paying account holds enough funds and settles on the spot. Because it does not net receipts against payments as designated-time net settlement does, it can reduce settlement risk, but it requires enough intraday funds to cover each payment in full1.

The Bank of Japan's BOJ-NET current account system settles funds in principle by this method2. T2 in the euro area is also an RTGS that settles payment orders one by one in central bank money3.

Notes

  1. CPSS-IOSCO, "金融市場インフラのための原則" (Principles for Financial Market Infrastructures, Japanese provisional translation; our translation of the title), April 2012, paragraphs 3.8.6 and 3.8.7, pages 92–93 (in Japanese). ↩

  2. Bank of Japan, "日本銀行が運営する資金決済システムに関する情報開示" (Disclosure on the funds settlement system operated by the Bank of Japan; our translation of the title), July 31, 2025, section 1-2, page 2 (in Japanese). ↩

  3. European Central Bank, "What is T2?", "How does T2 work?". ↩