What is another term commonly used to refer to RTGS payment systems?

RTGS, or Real-Time Gross Settlement systems, are designed specifically for processing high-value transactions where the transfer of funds happens immediately and in real-time. This means that the payment is settled on a transaction-by-transaction basis without netting debits with credits. High-value payment systems are crucial in the financial market for maintaining liquidity, reducing credit risk, and ensuring immediate access to funds for large transactions between banks and financial institutions.

The terminology differentiates these systems from others such as low value payment systems, which handle smaller transactions, and instant payment systems, which may not operate on a real-time gross settlement model. While blockchain payment systems refer to a different technology altogether, focusing on decentralized and distributed ledgers.

Therefore, identifying RTGS as a term synonymous with high-value payment systems accurately reflects the intended use and operational characteristics of these payment methods in the financial ecosystem.