Bank Negara Malaysia (BNM) has on Tuesday launched RENTAS+, an enhancement to RENTAS, Malaysia’s real-time gross settlement system (RTGS).

The central bank said in a statement that built in-house using modern cloud technology, RENTAS+ enables continuous interbank funds transfer and settlement, 24/7, 365 days a year. RENTAS is the first RTGS system in ASEAN to do so.

The expansion of RENTAS’ settlement window enables financial institutions to better manage credit and settlement risks arising from rapidly growing retail instant payments through continuous settlement of retail payments transactions.

According to the central bank, since 2024, the country’s daily retail payment transaction volume and value have grown by 49 percent and 22 percent respectively.

To facilitate round-the-clock settlement, BNM has also introduced a 24/7 automatic liquidity facility using repurchase agreements (repo) and sell and buy back agreements (SBBA).

Before RENTAS+, retail payments were settled twice daily on a deferred net basis. While efficient, deferred net settlement carries inherent credit and settlement risks, as credit exposures between banks are only settled twice daily.

These risks are largely eliminated with RENTAS+, as DuitNow transactions (encompassing fund transfers, QR payments, and e-commerce payments) are now settled on a gross basis, with Payments Network Malaysia (PayNet) transmitting DuitNow transactions to RENTAS+ for settlement after each customer transaction has completed.

“The launch of RENTAS+ marks a significant milestone in the multi-year modernization plan for RENTAS,” said Abdul Rasheed Ghaffour, BNM’s Governor.

“RENTAS+ strengthens the resilience of Malaysia’s financial market infrastructure, while providing a secure, scalable, and flexible settlement platform for future innovations,

“It also highlights BNM’s commitment to positioning RENTAS as a catalyst and enabler for innovation in financial markets,” he added.

RENTAS, or the Real Time Electronic Transfer of Funds and Securities, is Malaysia’s RTGS that was launched in 1999.

In 2024, RENTAS settled transactions amounting to 73.63 trillion ringgit ($17.47 trillion), which is 45 times Malaysia’s gross domestic product (GDP).

RENTAS stands as the largest sukuk depository in the world, with $300 billion sukuk in custody. It is also one of Asia’s five largest bond depositories.

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