What is the main advantage of payments made through RTGS payment systems?

The main advantage of payments made through Real-Time Gross Settlement (RTGS) systems is that they provide immediate settlement in central bank money. This means that when a payment is processed through an RTGS system, the transaction is settled instantly, with funds transferred directly between banks without the need for any intermediary processes.

This immediate settlement is crucial for financial institutions and high-value transactions, as it reduces the risk of counterparty default and enhances liquidity management, making funds available to the receiving party right away. By using central bank money, which is considered the safest form of money, RTGS systems also minimize credit risk, ensuring that the transactions are secure and final.

Other options, while they have their merits in different payment systems, do not capture the defining feature of RTGS: the real-time and final nature of settlements in central bank money. For instance, netting might be advantageous in other systems, but it doesn't apply to RTGS, where each transaction is settled individually and immediately. The ease of reversing transactions is not a characteristic of RTGS, where the focus is on finality. Additionally, although near-real-time payments are a benefit in some systems, RTGS guarantees immediate settlement, which sets it apart.