ISO 20022 RTP

ISO 20022 is an ISO standard for electronic data interchange between financial institutions. It describes a metadata repository containing descriptions of messages and business processes, and a maintenance. Real-time payment systems need to have a sophisticated liquidity management feature to support the requirement of banks and non-banks to maintain their minimum liquidity in the settlement system and to allow settlement banks to manage and monitor the liquidity requirement of their non-bank participants. Such functionality includes maintaining a hierarchy of clearing accounts that synchronize their balances with RTGS or settlement bank core banking systems on a periodic basis. The liquidity management process must ensure that the participants are advised in advance about their liquidity position so they can make decisions to increase or decrease the liquidity level.