Real-time gross settlement (RTGS) is a system used by banks to transfer money between each other instantly and securely. In this system, transactions are settled in real-time, meaning that the transfer of funds occurs immediately rather than being processed in batches. This helps ensure that payments are completed without delay, which is crucial for large transactions. RTGS is typically used for high-value payments, such as those involving central banks or large corporations. By settling transactions on a gross basis, each payment is processed individually, reducing the risk of default and enhancing the overall stability of the financial system.