RTGS, or Real-Time Gross Settlement, is a system used for transferring money between banks and financial institutions. It allows for the immediate and continuous settlement of transactions, meaning that funds are transferred in real-time without any delays. This system is crucial for large-value transactions, ensuring that payments are processed securely and efficiently. In an RTGS system, each transaction is settled individually and in full, rather than netting multiple transactions together. This reduces the risk of default and enhances the overall stability of the financial system. Many countries have their own RTGS systems, which are essential for maintaining liquidity in the banking sector.