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Real Time Gross Settlement (RTGS)
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The funds settlement system used on the FEDWIRE and planned for other modern fund transfer systems. Real time means quickly or immediately upon receipt of evidence that the obligation is covered by an account balance, a credit line, or pledged collateral. In some cases, daylight overdrafts are permissible. These transfers are slower than real time in the electronic sense. Gross means that a specific obligation is paid in full, not netted against offsetting obligations. RTGS systems can be integrated with payment netting systems to cut down credit exposure. See also Designated Time Net Settlement (DTNS).
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