the payments system in trinidad and tobago - Central Bank of ...

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22THE PAYMENTS SYSTEMIN TRINIDAD AND TOBAGOReal Time Gross Settlement (rtgs)The RTGS system is owned and managed by the Central Bank. It isused for large value ($500,000 and over) or time critical payments ofany amount. It is the only non-cash system in which value is transferredfrom payer to payee with finality almost immediately. All commercialbanks are required to participate in the RTGS system.The process for use of the RTGS is similar to that for the ACH. Anindividual or company simply requests a bank to use this system andprovides the required payment details. Unlike with the ACH whichprocesses payments on a batch basis, the RTGS receives andprocesses each transaction individually as the customer makesthe request.Clearance and Settlement of RTGStransactionsHaving received the customer’s instructions, the bank withdraws moneyfrom the customer’s account and electronically sends a payment instructionto the RTGS. The RTGS system immediately debits the payingbank account and credits the beneficiary’s. All banks are able to viewtheir transactions on line. The receiving bank is required to pass on thefunds to the beneficiary’s account within two hours of receipt.
23THE PAYMENTS SYSTEMIN TRINIDAD AND TOBAGOThe clearing and settlement process for an RTGS payment is depictedin Figure 8 below.Figure 8RTGS Clearing and SettlementMessage flowsTransfer of funds
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