Logo
Select Quick Pages:
Home
About
Contact Us
Disclaimer
Privacy policies
Terms and conditions

The settlement system which settle transaction on a one to one basis without adjusting debits against credits

  • The settlement system which settles transactions on a one-to-one basis without adjusting debits against credits is called "Gross Settlement".
  • In a gross settlement system, transactions are settled individually, without netting out any debits or credits.
  • This means that each transaction is settled separately and immediately, with funds being transferred from the payer's account to the payee's account.
  • Gross settlement systems are typically used for high-value transactions, where there is a need for immediate settlement and minimal credit risk.
  • One example of a gross settlement system is the Real-time Gross Settlement (RTGS) system, which is used by many central banks around the world to settle high-value interbank transactions.