1.Introduction
Real Time Gross Settlement System - Jordan (RTGS-JO) which came into force in 2002 considered the key pillar for the payments infrastructure in Jordan. RTGS-JO is also a central point and the corner stone for other retail payment and electronic clearing systems operating in Jordan.
RTGS-JO; operated by Central Bank of Jordan (CBJ), is a centralized electronic system to settle bilateral credit transfers, on a real time, gross, and final basis. It also provides the settlement of Net Clearing Positions (NCPs) generated by retail payment systems through the centralized settlement accounts associated to central bank money in addition to settle the cash leg of the operations handled by the electronic system of public debt management and open market operations (Depox).
On March 15th 2015, CBJ launched the modernized version of RTGS-JO, which considered, at that time, the first in the region and the second in the world by the recognized international institutions in terms of adopting ISO 20022 messaging standards. Additionally, RTGS-JO takes into account all international standards and best practices; the mostly important Principles for Financial Market Infrastructures (PFMIs).
RTGS-JO is built on SWIFT communication as the primary messaging scheme between participating members, while it uses a Virtual Private Network (VPN) as a secondary connectivity; in order to ensure business continuity. RTGS-JO messages upgraded to ISO 20022 Instead of ISO 15022 resulting in system flexibility in responding to future expandability.