What is inward & outward RTGS?
An RTGS payment system is one in which payment instructions between banks are processed and settled individually and continuously throughout the day.
This is in contrast to net settlement systems (such as paper-based clearing houses and their more modern electronic equivalents), where payment instructions are processed (cleared) throughout the day but Inter-bank settlement (i.e. the movement of the funds between the banks) takes place only afterwards, typically at the end of the day. The attraction of the RTGS systems is that payee banks and their customers receive funds with certainty during the day, enabling them to use the funds immediately without exposing themselves to risk.