RTGS payment Australia – Detailed Explanation

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RTGS payment Australia – Detailed Explanation,Real Time Gross Settlement (RTGS) Payments

RTGS payment Australia – Detailed Explanation

Under RTGS, payments between banks are made individually and in real time using money that is credited to the Exchange Settlement Account (ESA) of the paying bank at the Reserve Bank. RTGS payments are final and can’t be taken back by the bank that sent the money or reversed in any other way.


The Reserve Bank Information and Transfer System (RITS), Australia’s interbank settlement system, was used to start RTGS on June 22, 1998. This article looks back at the twelve years that RTGS has been in use. It talks about important parts of the system, looks at how well it has worked, and points out important changes.

The switch to RTGS was the result of years of work by the Reserve Bank, financial institutions, and industry groups to reduce domestic interbank settlement risk by a large amount.

Before RTGS was put in place in June 1998, most transactions between banks and their customers were settled at 9 a.m. Sydney time on the day after they were made. Settlement was done with a single net transfer across their ESA at the Reserve Bank.


This meant that in the time between payments, banks could owe each other very large amounts of money. Due to the large amounts and number of transactions involved, if these didn’t settle for any reason, it could have caused a lot of trouble in the payment system.


Because of this, other banks could have had trouble getting money or staying in business. RTGS dealt with this systemic risk by requiring that high-value payments be settled in real time and irreversibly out of credit funds in banks’ ESAs. This stopped large amounts of unpaid obligations from building up.


The Reserve Bank’s approval under the Payment Systems and Netting Act of 1998 protects the RTGS system. This makes sure that payments can’t be taken back if a participant fails after having made payments earlier in the day. Today, RTGS is used to settle about 90% of payments between banks by value. Work is also being done to make sure that some low-value systems, such as direct entry, that still settle in RITS on a next-day deferred basis settle more quickly.

What is an RTGS payment, or a “real time gross settlement”?

An RTGS payment is a special kind of payment in which money is moved from one Australian bank to another in real time and in full. Settlement in real time means that the payment doesn’t have to wait for too long.


Can I delegate RTGS Payments access through Internet Banking?

The Delegated User’s ability to complete RTGS Payments is determined by their Pay Anyone Access Rights for the International/RTGS Payments account.

For example, if the delegated user has CreateView access for Pay Anyone transactions related to an account that is registered for International/RTGS Payments, this delegated user will be able to create RTGS Payments (which will require further authorisation) and view all the RTGS Payment details provided on the RTGS History and RTGS Payees tabs.



When can I use the RTGS Payments facility on Internet Banking?

From 7 a.m. Monday (Brisbane time) to 5 p.m. Friday, you can use Internet Banking to make an RTGS payment (Brisbane time). If you try to make an RTGS Payment outside of these hours, Internet Banking will tell you that the Trading Desk is Closed.

Please be aware that the RTGS Payments facility will be closed for maintenance from 4:15 p.m. (Brisbane time) for about 15 minutes, Monday through Friday.

To make an RTGS Payment, what do I need?

You will need the following to make an RTGS Payment:

a Security Token for BOQ
be able to do transactions with Pay Anyone


If you haven’t made an International/RTGS payment through a branch or Internet Banking before, you will need to register this account for International/RTGS Payments.

Internet Banking can be used to finish the registration process. After you sign in to Internet Banking, go to the menu and click the International option. Then, click the Register Accounts button. Choose the accounts you want to register, then click the “Submit” button.

This request to sign up for an account will be handled in two business days.

After the account registration request has been finished, you will get a secure email.

If you don’t have a BOQ Security Token or can’t use Pay Anyone, please go to the branch closest to you.

Which banks accept RTGS payments?

RTGS payments can be made to any Australian Financial Institution that accepts RTGS payments.

When will the RTGS recipient receive the funds?

If the payment is submitted before 4:00 p.m. (Sydney time), the RTGS Payment will arrive at the payee’s bank within 120 minutes.



How much can I take out of my RTGS Payment every day, and how can I change this limit?

A maximum of 250,000 Australian Dollars can be used in a single RTGS Payment.

All RTGS Payments count toward your daily limit of how much you can pay anyone. Your daily limit is the same as the package you are on right now.

Through the Transfers & BPAY menu in Internet Banking, you can click Change Daily Limit to change your Limits Package.

Please note that there is a two-day delay between requesting an increased Limits Package and having the new limit available. This is a security measure. If you ask at your local BOQ branch, the limit can be raised right away.

In the table below, you can see the different limit packages:



When will my RTGS payment show up in my account?

The RTGS Payment will be taken right away from your bank account. If you asked for a payment before 3:00pm, the fee will be taken out of your account overnight (Sydney time). If the payment was requested after 3:00 pm Sydney time, the fee will be taken out of your account overnight on the next business day.


How can I be certain that my RTGS payment was successful?

The RTGS Payment request can be viewed under the Transfers & BPAY screen’s RTGS Payment History tab. This is immediately accessible within the Internet Banking session in which the RTGS Payment was requested. It is also accessible in future Internet Banking sessions.


What can I do if the person I sent money to through RTGS says they haven’t gotten the money?

RTGS payments can take up to 120 minutes to reach the bank of the person who is receiving them (if the payment was requested after 8:30am and before 4:00pm Sydney time).

If the payee has not received the RTGS Payment, you should contact the payee’s bank to make sure they have received the funds and find out why they have not processed the payment. You can also ask for a trace by calling any BOQ branch.

Please look at the Fees and Charges guides on the Terms and Conditions page for more information.


Can I use the information from an earlier RTGS Payment to construct a new one?

Yes, the RTGS Payments tab displays a history of completed RTGS Payments. Clicking the RTGS payee name of the RTGS Payment and then clicking Copy will populate the Enter RTGS Payment page with the selected payment’s information (including the from account used and the RTGS payee details).

Can I use a previous RTGS payee to make an RTGS Payment without having to re-enter all the details of the payee?

Yes, the RTGS Payees tab has a list of the people who have been paid through RTGS Payments in the past. If you click on the name of the RTGS payee and then click on the Pay Payee button, the details of the selected payee will already be on the Enter RTGS Payment screen.

Also, in the Select RTGS Payee dropdown box on the Enter RTGS Payment screen, you can choose a payee you’ve used before.

Please note: If an RTGS Payment has been made with an RTGS Payee that has never been used before, this payee will not show up on the RTGS Payee tab or in the Select RTGS Payee dropdown box until the relevant RTGS Payment has been processed by BOQ Treasury.


Read Also

Different ways to pay Settled

RITS settles the payment obligations of banks and other institutions (like clearing houses and other special-purpose institutions) that have been given permission by the Reserve Bank to run an ESA. At the moment, ESAs are held by 55 banks and 14 other institutions, which will be called “banks” for the rest of this article.

In RITS, there are three main types of payment obligations that are settled through RTGS:

In the Austraclear securities settlement system, debt securities and money market transactions are done on a wholesale level. A link between this system and RITS makes sure that when securities are settled, the securities are sent out and paid for at the same time. This gets rid of the risk that the principal (the securities or cash) will be lost if delivery and payment don’t happen at the same time.
The part of foreign exchange transactions, bank flows, and other customer payments that involve the Australian dollar. The Australian Payments Clearing Association runs the SWIFT Payment Delivery System (PDS), which is used to send these payments.
Interbank lending and borrowing, as well as interbank transactions for special purposes, are all put directly into RITS as “cash transfers.” Before February 2002, RITS provided a way for Commonwealth Government Securities to be stored and settled electronically (CGS).
Along with RTGS, RITS still settles net interbank obligations in groups. Every day at 9 a.m., a batch of multilateral net obligations is settled. This includes obligations that came from clearing low-value payments (cheques, debit and credit card transactions, and direct entry) made the day before.

After going through the ASX Limited’s Clearing House Electronic Subregister System, trades on the stock market are also settled in RITS (CHESS). Every day around noon, the ASX Limited puts net settlement obligations into RITS so that they can be settled at the same time in the CHESS batch.

Since May 2008, some property deals can be settled directly in RITS instead of using bank checks. Austraclear Limited puts the settlement obligations from real estate transactions that are handled through an electronic registration system into RITS so that they can be settled in the Electronic Property Settlement batch.



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