Real time gross settlement (RTGS) is an interbank clearing system used for transactions above 10,000.00 convertible marks, and its use for lower amounts is optional. The systems performs the settlement of payment orders among participants in real time, i.e. the transactions processed through RTGS are carried out immediately (if there is coverage provided for them in the settlement account). The system is operative each working day from 08:00 to 16:00 hours. RTGS uses the SWIFT communication network and SWIFT payment message formats, as it follows: MT102, MT103, MT202 and MT205.

The settlement of all the payment orders, regardless of the payment order amount, sent to be executed by an RTGS participant (all the banks licenced to perform payment operations are participants, as well as the Central Bank of BH) is carried out in RTGS.

The settlement of net positions of participants in Gyro Clearing is carried out through settlement accounts in RTGS, according to Decision on Defining Operative Rules of RTGS. Also, the settlement of transactions of other legal persons acting as clearing agents, such as card transaction operators is also performed.

The RTGS operative rules, in the part related to the execution of payment orders, say: „Payment orders, having been executed in RTGS, are final and irrevocable“. Also, RTGS operative rules define that participants in RTGS system are responsible for providing coverage in the settlement account. Payment orders will be settled if coverage is provided in the settlement account. If coverage is not provided, payment orders will be classified and carried out by priorities. If the participant fails to provide sufficient funds in its settlement account by the end of the day, the Central Bank of BH will cancel the order.

The operative rules for Real Time Gross Settlement (RTGS) define the conditions under which participants are admitted in the RTGS system and exit the RTGS system, the conditions for excluding the participants from RTGS, practice and operative procedures of RTGS, procedures for the settlement of participants’ clearing net positions, and procedures for the settlement of RTGS participants in special cases.

The Central Bank of BH charges to the participants the costs of service of executing payment transactions through RTGS, and also a fee for the participation in payment systems according to the applicable fee tariffs of the Central Bank of BH. The charging is carried out by debiting the participants’ reserve accounts with the relevant main unit or branch of the Central Bank of BH.

In order to provide the constant availability of the payment system through RTGS, the Central Bank of BH has prepared contingency plans including the procedures and measures for continuing reliable, proper and legal operations of RTGS, within the maximum time of two hours.