What is the purpose of setting limits in a dual signature bank account?

The primary purpose of setting limits in a dual signature bank account is to prevent unauthorized access to funds. A dual signature account requires two authorized signatures for transactions, which adds an additional layer of security. This arrangement helps ensure that no single individual can unilaterally control or withdraw funds from the account without the consent of another designated individual. By requiring multiple approvals, dual signature accounts mitigate the risk of fraud or misappropriation of funds, making it a crucial mechanism for safeguarding assets, especially in organizations or partnerships where multiple people have a vested interest in the account.