RTGS networks require high levels of reserve liquidity to function smoothly throughout the operating day. A lack of available cash can cause processing gridlock as banks delay payments while waiting to receive incoming transfers. [1]
Managing Intraday Liquidity Pressures
[Bank Alpha Faces Payment Queue] 
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           v
[Request Intraday Central Bank Credit] -> Injects temporary reserves against collateral
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           v
[Process Queued Transactions] -----------> Restores normal payment system speeds
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           v
[Repay Credit Line by Closing] ----------> Drains temporary reserves before market close

To prevent settlement queues, central banks offer Intraday Credit Facilities. These facilities provide interest-free, overnight credit to banks against eligible collateral, injecting the liquidity needed to process high transaction volumes safely during the operating day.
 
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