To prevent transaction queues from gridlocking national payment networks, central banks provide Intraday Credit Facilities, commonly known as daylight overdrafts.

Central banks provide interest-free, intraday credit to healthy depository institutions, allowing them to draw account balances below zero during the operating day, provided the overdraft is fully backed by eligible collateral:

Bank Alpha draws balance below zero -> Pledges sovereign bonds to Central Bank -> Account stays liquid -> Overdraft repaid by closing time

This temporary credit injection ensures that banks can process customer payments without waiting for incoming wires, supporting liquidity and transaction velocity across the financial sector.