In the fast-paced world of Australian finance, the ability to transfer large sums of money securely and instantly is no longer a luxury—it’s an expectation. At the heart of this expectation sits Real-Time Gross Settlement (RTGS), a critical infrastructure powering Australia’s payments ecosystem. As digital transformation sweeps through the finance sector in 2025, understanding RTGS has never been more important for businesses, financial professionals, and everyday Australians alike.
What is RTGS and Why Does It Matter?
RTGS, or Real-Time Gross Settlement, is a payment system where the transfer of funds happens individually, in real time, and on a ‘gross’ (transaction-by-transaction) basis. Unlike traditional batch processing, where payments are bundled and cleared at set intervals, RTGS settles each payment instantly and irrevocably, reducing settlement risk and ensuring absolute certainty of funds.
Australia’s RTGS system, operated by the Reserve Bank of Australia (RBA), has been a cornerstone of the nation’s financial stability since its launch in 1998. Today, it processes over $200 billion in transactions daily, covering interbank transfers, large corporate payments, and high-value transactions that keep the economy moving.
- Speed: Payments are settled in seconds.
- Finality: Once settled, transactions cannot be reversed.
- Security: Operated by the RBA, with robust risk controls.
2025 Policy Updates: What’s New in RTGS?
2025 has seen a raft of updates to Australia’s RTGS framework, reflecting global shifts towards 24/7 payment availability and enhanced transparency. Some of the most notable changes include:
- Extended Operating Hours: As of March 2025, RTGS now runs on an extended schedule, operating from 7am to 11pm AEST, in line with growing demand for after-hours corporate payments and cross-border transactions.
- ISO 20022 Migration: The system has completed its migration to the ISO 20022 messaging standard, enabling richer payment data and improved interoperability with international payment systems. This aligns with the RBA’s strategy for a more connected global financial system.
- Integration with the New Payments Platform (NPP): RTGS now integrates more deeply with the NPP, allowing for seamless movement between high-value and retail payments. For example, a property settlement can be initiated in RTGS and finalised in real time via the NPP’s Osko service, reducing bottlenecks.
These updates reinforce RTGS’s role as the backbone for both traditional and emerging payment rails in Australia, ensuring the system keeps pace with digital innovation and international best practice.
How RTGS Impacts Businesses and Consumers
While the mechanics of RTGS might seem technical, its impact is felt across the economy:
- Large Corporates & Financial Institutions: RTGS is the default for high-value transactions, such as interbank lending, securities settlement, and major supplier payments. It reduces counterparty risk and supports liquidity management.
- Property Transactions: Australian property settlements often rely on RTGS for the safe, immediate transfer of funds. With the 2025 policy updates, settlements can now occur later in the day, providing greater flexibility for buyers, sellers, and conveyancers.
- Cross-Border Payments: The adoption of ISO 20022 has streamlined cross-border settlements. For example, an Australian exporter can now receive USD payments from a US buyer faster, with richer remittance information, thanks to improved system interoperability.
- Everyday Australians: While most day-to-day transactions use retail payment systems, RTGS’s reliability underpins the entire banking sector. The 2025 enhancements mean even retail customers benefit indirectly through faster, safer movement of funds between banks.
In practice, RTGS ensures that when a business needs to pay a supplier urgently, or a family is settling on a new home, funds move swiftly and with confidence. The system’s resilience was especially crucial during periods of market volatility in early 2025, when large volumes of payments needed to be settled without delay.
The Future of RTGS: Towards 24/7 Settlement?
Looking ahead, the RBA is exploring options for full 24/7 RTGS availability, mirroring trends in Europe and Asia. This would further blur the lines between business and retail payments, supporting Australia’s ambitions as a regional financial hub. Additionally, ongoing upgrades to cybersecurity and fraud prevention are ensuring the system remains robust against emerging threats.
For fintechs and payment innovators, the open data and interoperability enabled by ISO 20022 are unlocking new possibilities for value-added services, such as real-time treasury management and automated reconciliation for businesses.
Conclusion
RTGS may operate quietly in the background, but its impact on the Australian economy is profound. The 2025 updates to operating hours, messaging standards, and integration with retail payments ensure that Australia’s payment infrastructure remains world-class. Whether you’re a business leader, finance professional, or simply moving money across accounts, RTGS is the invisible engine that guarantees speed, security, and certainty.
