---
term: "Policy"
category: "Governance and records"
url: https://federatedbanking.com/glossary/policy
source: Federated Banking™ glossary
---

# Policy

> The operating rules, approvals and financial controls a network applies to its activity.

A policy is a rule the network applies: who may initiate a payment, what needs a second approval, limits on amounts, which providers may be used and when. Policies are set to suit the use case and applied consistently across providers, so the controls do not depend on the provider carrying a particular payment.

Related terms: [Permissioned](https://federatedbanking.com/glossary/permissioned.md), [Traceability](https://federatedbanking.com/glossary/traceability.md)