What is typically the characteristic of payments made through a real-time gross settlement (RTGS) system?

Payments made through a real-time gross settlement (RTGS) system are characterized by being irrevocable and settled in real time. This means that once a transaction is initiated and accepted by the system, it cannot be reversed, and the funds are transferred immediately from one bank's account to another.

In an RTGS environment, transactions are settled individually and on a gross basis, which minimizes the risk of settlement default. This feature is particularly important for high-value transactions where timely settlement is crucial for liquidity management and financial stability. The irrevocability of transactions ensures that both parties can have confidence in the completion of the payment process.

Other options provided do not accurately reflect the operational characteristics of RTGS systems. For example, payments are not typically settled at the end of each business day, as they are processed continuously throughout the day. Also, while verification is an essential part of payment processing, RTGS systems mandate immediate settlement, thereby not subjecting transactions to delays. The mention of greater withdrawal limits is more related to account features rather than the inherent characteristics of the RTGS payment process itself.