Prior to submitting a Payment Message to the RTP System, what must be satisfied by a Sending Participant?

The correct answer indicates that a Sending Participant must satisfy its Prefunded Requirement before submitting a Payment Message to the RTP System. The RTP (Real-Time Payments) system operates on a model where the funds must be available and secured ahead of time to ensure that transactions can be completed instantaneously.

The prefunding requirement means that the sending financial institution needs to ensure that they have sufficient funds available to support the payment they intend to send. This system is designed to help mitigate risk and ensure that transactions are settled in real-time without delays.

Understanding this requirement is crucial because it ensures the integrity and efficiency of the RTP system, facilitating instant payments while maintaining sound financial practices. When an institution meets this requirement, it can reliably execute transactions without running into issues related to insufficient funds, thereby enhancing the trust in the payment system as a whole.