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Japan's Next-Generation RTGS*1

  • *1This is an abridged English translation of the Japanese original released in September 2006 in the Nippon Ginko Chousa Kiho (Bank of Japan Research Bulletin). An earlier version of this paper was published in SPEED 1, no. 2 (2006): 35-38.

October 25, 2006
Payment and Settlement Systems Department
Bank of Japan

Click on ron0610a.pdf to download the full text.


In February 2006, the Bank of Japan decided to implement the neXt-Generation RTGS project (RTGS-XG) of the BOJ-NET Funds Transfer System. Under the RTGS-XG project, BOJ-NET will introduce liquidity-saving features. The new system will also incorporate large-value payments that are currently handled by two private-sector deferred net settlement systems, the Foreign Exchange Yen Clearing System and the Zengin System. The project will be implemented in two phases, with the first phase scheduled for fiscal 2008 and the second for 2011. This paper provides an overview of the project and discusses how it is expected to enhance the safety and efficiency of the settlement mechanism for large-value payments in Japan.