Netting vs Real-time gross settlement (RTGS): what is the difference?
Netting offsets what parties owe each other so only the difference is paid. RTGS does the opposite: it settles every payment in full, one by one, as it is processed.
| Netting | Real-time gross settlement (RTGS) | |
|---|---|---|
| In one line | Netting is offsetting what parties owe each other so that only the net difference is paid, reducing the number and value of payments needed to settle. It can be bilateral, between two parties, or multilateral, across many. | Real-time gross settlement (RTGS) is the settlement of payments individually, transaction by transaction, as they are processed. Central bank RTGS systems such as Fedwire, CHAPS and T2 settle large-value payments in central bank money with immediate finality. |
| Read more | Netting | Real-time gross settlement (RTGS) |
How they work together
Net settlement saves liquidity; gross settlement removes the risk that one party's failure unwinds others. Many systems combine the two.
Where Polynopsis fits
Polynopsis shows gross balances at every bank and partner, so the team can see what netting changes and what still has to be funded.
Polynopsis shows each corridor's balance against the next payout batch, so a top-up can be sent before the RTGS cut-off that decides whether it lands today.
Frequently asked questions
What is the difference between netting and real-time gross settlement (rtgs)?
Netting offsets what parties owe each other so only the difference is paid. RTGS does the opposite: it settles every payment in full, one by one, as it is processed.
What is Netting?
Netting is offsetting what parties owe each other so that only the net difference is paid, reducing the number and value of payments needed to settle. It can be bilateral, between two parties, or multilateral, across many.
What is Real-time gross settlement (RTGS)?
Real-time gross settlement (RTGS) is the settlement of payments individually, transaction by transaction, as they are processed. Central bank RTGS systems such as Fedwire, CHAPS and T2 settle large-value payments in central bank money with immediate finality.
Sources
- A glossary of terms used in payments and settlement systems · Committee on Payments and Market Infrastructures, Bank for International Settlements
- CLSSettlement · CLS Group
- Payment and settlement · Bank of England
- Fast payments: design and adoption, BIS Quarterly Review, March 2024 · Bank for International Settlements
- Fedwire Funds Services · Board of Governors of the Federal Reserve System
- CHAPS · Bank of England
- T2 · European Central Bank
- Payment System Report, December 2025 · Reserve Bank of India
- Federal Reserve action to expand Fedwire Funds Service and National Settlement Service operating hours (Federal Register notice, October 2025) · Board of Governors of the Federal Reserve System
Know where all your money is.
Polynopsis gives cross-border payment teams one live position across every bank, payout partner, exchange and wallet, including money in flight, and warns before a corridor runs dry.
About Polynopsis
Polynopsis is liquidity management software for cross-border payment companies. The name joins poly, many, and synopsis, a seeing together: one live view of money spread across many banks, payout partners, exchanges and stablecoin wallets, including money in flight, with a warning before any corridor runs dry.
Why it is called Polynopsis · About Polynopsis · Glossary · Corridor runway calculator