TLM in banking stands for Transaction Limit Management.
Transaction Limit Management (TLM) is a crucial aspect of banking operations that involves setting and managing limits on various transactions. This helps banks prevent fraudulent activities, ensure customer safety, and maintain financial stability.
TLM encompasses various types of limits, including:
- Daily withdrawal limits: These limits restrict the amount of money a customer can withdraw from their account each day.
- Transaction value limits: These limits restrict the maximum amount of money that can be transferred or spent in a single transaction.
- Cumulative transaction limits: These limits restrict the total amount of money that can be transacted within a specific time frame, such as a month.
TLM systems are designed to be flexible and adaptable to different customer needs and risk profiles. Banks can set different limits for different customers based on their transaction history, account balance, and other factors.
TLM plays a vital role in ensuring the safety and security of banking operations. By setting appropriate limits, banks can effectively mitigate the risks of fraud and financial losses.
