Final answer:
The main difference is that RTGS systems are used for large, time-critical transfers, offering immediate settlement, while electronic-small value transfers handle less urgent, smaller amount transactions and do not provide real-time settlement.
Step-by-step explanation:
The primary difference between a Real-Time Gross Settlement (RTGS) system and an electronic-small value transfer lies in the value and speed of the transactions. An RTGS is designed for the transfer of large monetary sums and completes transactions on an individual, order-by-order basis in real-time. Conversely, electronic-small value transfers are used for smaller, non-urgent transactions which can be processed in batches and may take longer to settle.
RTGS systems ensure the immediate finality and irrevocability of large fund transfers, usually employed by banks and financial institutions for high-value transactions. Electronic-small value transfer systems, such as those facilitated by debit cards, allow consumers to transfer smaller amounts of real money from their bank accounts, and are not settled on a real-time basis. These are more common for everyday transactions.