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Real-time gross settlement (RTGS) is a system that enables instantaneous settlement of payments. It is often used by financial institutions to transfer large sums of money between each other. RTGS has been available in Australia since 2002 and it has become a vital part of the country’s financial infrastructure.

In this article, we will discuss why RTGS is such a game changer for Australian financial institutions.

What exactly is RTGS?

As mentioned earlier, RTGS is a payment system that allows for the instantaneous settlement of payments. This means that when a financial institution makes an Australia RTGS payment to another financial institution, the funds are transferred immediately, without any delay.

RTGS is different from other types of payments, such as cheques or direct debits, which can take several days to clear.

What are intra-day payments?

One of the key benefits of RTGS is that it enables intra-day payments. This means that financial institutions can make same-day payments to each other without having to wait for the funds to clear. This is a significant advantage over other payment methods, which can often take several days to process.

Common use cases of intra-day payments

There are a number of situations where intra-day payments can be extremely useful. For example, if a financial institution needs to make an urgent payment to another institution, such as in the case of a large loan or mortgage, RTGS can ensure that the funds are transferred immediately. This can save a significant amount of time and hassle for both parties involved.

Another common use case is when two financial institutions need to settle their accounts with each other at the end of the day. This is often done manually, which can be time-consuming and error-prone. With RTGS, however, the process can be automated, which saves a considerable amount of time and effort.

Other benefits of RTGS

In addition to the benefits discussed above, RTGS also offers a number of other advantages. For instance, RTGS is highly secure, as it uses sophisticated encryption methods to protect the data being transferred.

RTGS is highly efficient, as it eliminates the need for paper-based documentation. This reduces the risk of errors and saves time in the processing of payments.

What is an Exchange Settlement Account?

An Exchange Settlement Account (ESA) is a type of bank account that is used by financial institutions to settle transactions with each other. An ESA can be used for a variety of purposes, such as making payments, transferring funds and settling trades.

ESAs are an important part of the Australian financial system as they allow financial institutions to transact with each other in a safe and secure manner. In addition, ESAs provide access to a number of features and services that can make the process of settlements more efficient.

Cuscal is one company that makes high-value, intra-day payments to other financial institutions via RTGS. It’s an ESA holder with the Reserve Bank of Australia, so you can rest assured they’re able to provide RTGS facilities to clients.


RTGS is a game changer for financial institutions in Australia for several reasons. It enables same-day payments, which can save a significant amount of time and effort for everyone involved. Additionally, RTGS is highly secure and efficient, which makes it an ideal choice for large or urgent payments.

If you are looking for a faster and more convenient way to make payments, RTGS may just be the perfect solution.