In this regard, an increasing number of central banks have been adopting real-time gross settlement for current account settlements at the central bank. Real-time gross settlement - called RTGS for short - is a system in which the central bank processes and effects every payment instruction sent by private financial institutions in real time and on an order-by-order basis.
Most central banks, including the Bank of Japan, have typically conducted interbank settlements on a designated-time basis rather than by RTGS. In the conventional designated-time settlement, payment instructions are accumulated until designated settlement times instead of each one being settled immediately.