The Euro system Single Market Infrastructure Gateway (ESMIG) is providing several Target2 services. One of the services is 'Target2 with RTGS'. In RTGS (Real Time Gross Settlement System) High Value Payments are cleared.

TARGET2 is the real-time gross settlement (RTGS) system owned and operated by the Euro system.

It operates on the Single Shared Platform (SSP), which replaced the decentralized first-generation TARGET system.

Central banks and commercial banks can submit payment orders in euro to TARGET2, where they are processed and settled in central bank money, that means money held in an account with a central bank.

TARGET2 settles payments related to the Euro system's monetary policy operations, as well as bank-to-bank and commercial transactions.

TARGET2 goals:

• Support the implementation of the Euro system's monetary policy and the functioning of the euro money market.
• Minimize systemic risk in the payments market, i.e. the possibility of a single actor causing an entire market to collapse.
• Ensure the efficient processing of cross-border payments in euro.
• maintain the integration and stability of the Eurozone money market.

TARGET2 enables payments to flow safely and efficiently across Europe, and contributes to the stability of the euro.

TARGET2 is used to carry out monetary policy operations in the euro area. The central banks of EU Member States which have not yet adopted the euro also have the option to participate in TARGET2 and settle transactions in euro through the platform.

Other financial institutions can connect to TARGET2 through a participating central bank. They can choose from several different access options:

• Direct participant:  A financial institution established in the European Economic Area (EEA) that holds an RTGS account in central bank money in TARGET2, sends and receives payments on its own behalf or on behalf of its customers.
• Indirect participation: A financial institution established in the EEA that sends and receives payments through a direct participant in TARGET2.
• Multi-addressee access: Branches and subsidiaries of a direct participant in the EEA that are authorized to channel payments through the account of the direct participant.
• Addressable BIC: A correspondent of a direct participant that holds a Bank Identifier Code (BIC), irrespective of its place of establishment.

How to activate T2 RTGS in DOKA application:

The Target 2 parameter [T2 RTGS] is available in transaction DBISYS on 'Swift Release' panel. Before activation,Target2 payment messages in a specific Target2 MT format are created.