Bank of England’s RTGS Renewal Programme Deemed Prosperous, Audit Finds
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The UK National Audit Office (NAO) has published a report assessing the Bank of England’s (BoE) recent renewal of its Real-Time Gross Settlement (RTGS) system. Launched in April, the upgraded RTGS – a critical component of the UK’s financial infrastructure – has been delivered with only moderate delays and reasonable cost increases, according to the NAO’s findings. The report highlights the BoE’s strong performance in digital change and risk management throughout the project.
What is the RTGS System?
The RTGS system is the backbone of high-value payments in the UK. It facilitates the immediate transfer of funds between banks, ensuring the smooth functioning of financial markets and the overall economy. Unlike other payment systems that may settle transactions in batches, RTGS settles payments individually and immediately, reducing risk. https://www.bankofengland.co.uk/payments/rtgs
Key Findings of the NAO Report
The NAO report examined whether the boe effectively managed the renewal programme to create a resilient system prepared for future challenges and whether lessons learned were properly documented. Key conclusions include:
* Effective Digital Transformation: the BoE demonstrated good practice in its approach to digital transformation, navigating a complex project successfully.
* Reasonable Delays & Costs: The programme experienced delays of 18 months, and cost increases were considered reasonable given the system’s inherent complexity.
* Strong Risk Management: The BoE effectively managed risks throughout the renewal process.
* Ongoing Progress: The new RTGS is now operational,but the BoE plans to continue improving functionality over the next two to three years.Long-term planning will be crucial for maintaining and enhancing the system.
NAO Recommendations for the Bank of England
The NAO made several recommendations to ensure the continued success and optimization of the RTGS system:
* Apply Lessons Learned: The BoE should apply the knowledge gained from the RTGS renewal to other digital and business transformation projects across the institution.
* Sustained Investment: Clear plans for ongoing investment and resource allocation are needed to keep the RTGS system and its supporting services up-to-date and secure.
* Manage User Impact: The BoE needs to understand and proactively manage the impact of future changes to the RTGS system on its users (banks and other financial institutions).
* Improve access & Reduce Barriers: the BoE should assess the effectiveness of its efforts to broaden access to the RTGS system and reduce barriers to entry, ensuring an optimal approach.
future Outlook & Continued Betterment
The successful launch of the renewed RTGS system represents a meaningful achievement for the Bank of England. Though, the NAO emphasizes the importance of continued investment and strategic planning.The BoE must prioritize long-term maintenance and improvement to ensure the RTGS remains a robust and reliable foundation for the UK’s financial system in the face of evolving technological landscapes and emerging risks.
https://www.nao.org.uk/wp-content/uploads/2025/12/the-bank-of-englands-real-time-gross-settlement-system-renewal-programme.pdf
https://finreg.aoshearman.com/uk-nao-report-on-the-rtgs-renewal-programme
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