A BOJ-NET funds transfer (Japan RTGS)
A large-value yen payment settles one-for-one across the banks' current accounts at the Bank of Japan, individually and immediately — not batched and netted like a retail payment through the Zengin System.
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Bank Alfa submits the BOJ-NET transfer
Bank Alfa (sending bank) → BOJ-NET Funds Transfer System · BOJ-NET funds transfer
Bank Alfa sends a real-time gross settlement (RTGS) funds-transfer message for a high-value yen obligation to Nordbank. This is an instruction — the money has not moved yet.
Step 1 of 5: Bank Alfa submits the BOJ-NET transfer
- 02ProcessingBOJ-NET checks the current-account balanceBOJ-NET Funds Transfer System
- 03SettlementThe Bank of Japan settles the payment in real timeBank Alfa (sending bank) → Nordbank (receiving bank)
- 05PostingNordbank books the fundsNordbank (receiving bank)
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- 02ProcessingBOJ-NET checks the current-account balanceBOJ-NET Funds Transfer System
BOJ-NET checks that Bank Alfa's current account at the Bank of Japan holds enough to cover the payment, because an RTGS system settles each transfer in full or not at all.
- 03SettlementThe Bank of Japan settles the payment in real timeBank Alfa (sending bank) → Nordbank (receiving bank)
The Bank of Japan debits Bank Alfa's current account and credits Nordbank's, individually and immediately in central-bank money. Large-value payments of JPY 100 million or more settle this way.
- DR Bank Alfa's current account at the Bank of Japan — JPY 300,000,000
- CR Nordbank's current account at the Bank of Japan — JPY 300,000,000
- 05PostingNordbank books the fundsNordbank (receiving bank)
Because the interbank leg has already settled with finality across the Bank of Japan's books, Nordbank can record the credit on its own ledger without waiting for a netting cycle.
- CR Beneficiary's account at Nordbank — JPY 300,000,000
What this simplifies: One large-value payment settling gross across current accounts at the Bank of Japan; smaller retail payments are netted through the Zengin System instead, and real RTGS operation depends on intraday liquidity management across the day.
Sources for this flow2
- Official requirement
BOJ-NET Funds Transfer System ↗ — Bank of Japan
BOJ-NET is the RTGS core for the yen; retail net positions from the Zengin System settle across BOJ accounts.
- Simplified educational illustration
Payments Signal editorial teaching models — Payments Signal
What this simplifies: Fictional banks and a single large-value payment; real BOJ-NET operation involves many participants, intraday liquidity and queue-management features, and operating-hour cut-offs not shown here.
Used wherever diagrams, scenarios, figures, or example values are didactic constructions rather than sourced facts; every such use carries a simplifications disclosure. All people, companies, banks, and list entries in examples are fictional.