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Proposal for the Next-Generation RTGS Project of the BOJ-NET Funds Transfer System

December 2, 2005
Bank of Japan

The full text of the consultation document on the Bank's proposal is available in Japanese only. Click on set0512a.pdf (176KB) for an overview of the Bank's proposal in English.

On November 29, 2005, the Bank of Japan released a consultation document on the proposal for the next generation of the BOJ-NET Funds Transfer System (available in Japanese only).

In the consultation document, the Bank proposes to implement two measures with a view to further enhancing the safety and efficiency of large-value payment systems in Japan.First, the Bank will introduce liquidity-saving features into the real-time gross settlement (RTGS) mode of the BOJ-NET Funds Transfer System.Second, the Bank will modify the BOJ-NET Funds Transfer System in order to incorporate large-value payments that are currently handled by two private-sector deferred net settlement systems into the new RTGS system with liquidity-saving features.The two measures proposed by the Bank are collectively referred to as the next-generation RTGS (RTGS-XG) project.

The BOJ-NET Funds Transfer System serves as the core payment system in the Japanese financial system, and therefore the implementation of the RTGS-XG project will have a wide impact on financial institutions' daily operations and trading practices in relevant markets.This means that, in order to fully achieve its objectives, the project will require the individual and cooperative efforts of the Bank, BOJ current account holders, and other relevant parties in making modifications to systems and procedures at each institution and in reviewing market practices.Such efforts will also require development of a common understanding of the benefits of the RTGS-XG project and a shared vision of the future landscape of payment systems in Japan.

The Bank invites comments from interested parties on the consultation document by January 18, 2006.