Real time gross settlement

Real time gross settlement is like when you go to the bank with your mommy or daddy and they give the bank some money. The bank then takes that money and gives it to the people who need it.

But instead of taking a long time to figure out how much money should be given to whom, real time gross settlement is when the bank quickly and immediately gives the exact amount of money to the person who needs it.

This is like if your mommy or daddy gave you a dollar for your piggy bank and you immediately put it in your piggy bank without any delay or confusion. It is quick and exact.

Real time gross settlement is important for bigger businesses and money transfers because it helps them know exactly how much money they have and where it is going without waiting a long time.