Module: | Continuous Clearing (CCSR) & Penalties
Q24: Under the Continuous Clearing framework, how frequently are the "Settlement Batches" run by the Clearing House to finalize the net positions of participating banks?
✅ Correct Answer: C
While the processing of images is continuous (Real-time), the financial settlement is typically batched to maintain grid efficiency and manage liquidity.
The Schedule: Settlements are effected in hourly batches.
Timing: The first settlement cycle typically runs at 11:00 AM (covering items cleared/approved in the first hour) and continues hourly, with the final settlement session concluding at 7:00 PM.
Distinction: This differs from RTGS (Real-Time Gross Settlement). Continuous CTS uses "Continuous Processing with Granular Deferred Net Settlement" (hourly), allowing banks to manage liquidity better than the old "Once-a-day" huge hit, but without the capital intensity of pure real-time gross settlement for every small cheque.
The Schedule: Settlements are effected in hourly batches.
Timing: The first settlement cycle typically runs at 11:00 AM (covering items cleared/approved in the first hour) and continues hourly, with the final settlement session concluding at 7:00 PM.
Distinction: This differs from RTGS (Real-Time Gross Settlement). Continuous CTS uses "Continuous Processing with Granular Deferred Net Settlement" (hourly), allowing banks to manage liquidity better than the old "Once-a-day" huge hit, but without the capital intensity of pure real-time gross settlement for every small cheque.