"Due diligence" is a term used for a number of concepts involving

either an investigation of a business or person prior to signing a

contract, or an act with a certain standard of care. It can be a legal
obligation, but the term will more commonly apply to voluntary
investigations. A common example of due diligence in various industries
is the process through which a potential acquirer evaluates a target
company or its assets foracquisition.[1]

Due diligence in business transactions

In business transactions, the due diligence process varies for different
types of companies. The relevant areas of concern may include the
financial, legal, labor, tax, IT, environment and market/commercial
situation of the company. Other areas include intellectual property, real
and personal property, insurance and liability coverage, debt instrument
review, employee benefits and labor matters, immigration, and
international transactions.[2]

What Does Due Diligence - DD Mean?

1. An investigation or audit of a potential investment. Due diligence
serves to confirm all material facts in regards to a sale. 

2. Generally, due diligence refers to the care a reasonable person

should take before entering into an agreement or a transaction with
another party.

Investopedia explains Due Diligence - DD

1. Offers to purchase an asset are usually dependent on the results of
due diligence analysis. This includes reviewing all financial records plus
anything else deemed material to the sale. Sellers could also perform a
due diligence analysis on the buyer. Items that may be considered are
the buyer's ability to purchase, as well as other items that would affect
the purchased entity or the seller after the sale has been completed. 
2. Due diligence is a way of preventing unnecessary harm to either
party involved in a transaction.

BPLR or Benchmark Prime Lending Rate is the rate charged by

commercial banks to their most credit worthy customers. According
to the Reserve Bank of India, banks are free to fix their BPLRs but
the interest rates charged by them have to bear relevance to the
BPLR. Banks are free to fix BPLRs for credit limit beyond Rs.2 lakhs.
Lending rates for the agricultural sector was set by the RBI.

What is the meaning of ‘benchmark prime lending rate’ (BPLR)? As on

1.7.08, the BPLR of Indian banks was 13.25 per cent but as on 11.8.08,
it is 14 per cent. How is it fixed by banks?
According to the Reserve Bank of India (RBI), banks are free to fix the
Benchmark Prime Lending Rate (BPLR) with the approval of their
respective Boards. Banks are free to decide the BPLR but their interest
rates have to have a reference to the BPLR fixed. The BPLR is the
interest rate that commercial banks charge their most credit-worthy
customers
Retail banking refers to banking in which banking institutions execute
transactions directly with consumers, rather than corporations or other
banks. Services offered include:savings and transactional
accounts, mortgages, personal loans, debit cards, credit cards, and so
forth.

Types of banking
 Commercial bank has two meanings:
 Commercial bank is the term used for a normal bank to
distinguish it from an investment bank. (After the great
depression, the U.S. Congress required that banks only engage
in banking activities, whereas investment banks were limited to
capital markets activities. This separation is no longer
mandatory.)
 Commercial bank can also refer to a bank or a division of a
bank that mostly deals with deposits and loans from corporations
or large businesses, as opposed to normal individual members of
the public (retail banking). It is the most successful department of
banking.
 Community development bank are regulated banks that provide
financial services and credit to underserved markets or populations.
 Private banks manage the assets of high net worth individuals.
 Offshore banks are banks located in jurisdictions with low
taxation and regulation. Many offshore banks are essentially
private banks.
 Savings banks accept savings deposits.
 Postal savings banks are savings banks associated with
national postal systems.
Retail Banking services are also termed as Personal Banking services
Wholesale banking
From Wikipedia, the free encyclopedia
Wholesale banking is the provision of services by banks to the likes of
large corporate clients, mid-sized companies, real estate developers
and investors, international trade finance businesses, institutional
customers (such as pension funds and government entities/agencies),
and services offered to other banks or other financial institutions. In
essence, wholesale banking services usually involve high value
transactions.
Wholesale banking contrasts with retail banking, which is the provision
of banking services to individuals.
(Wholesale finance means financial services, which are conducted
between financial services companies and institutions such as banks,
insurers, fund managers, and stockbrokers.)
Modern wholesale banks are engaged in: finance wholesaling,
underwriting, market making, consultancy, mergers and acquisitions,
fund management.
Contingent liabilities are liabilities that may or may not be incurred by
an entity depending on the outcome of a future event such as
a court case. These liabilities are recorded in a company's accounts and
shown in the balance sheet when both probable and reasonably
estimable. A footnote to the balance sheet describes the nature and
extent of the contingent liabilities. The likelihood of loss is described as
probable, reasonably possible, or remote. The ability to estimate a loss
is described as known, reasonably estimable, or not reasonably
estimable

Examples
 outstanding lawsuits
 Accounts payable
 Legal liability
 Liquidated damages
 Tort
 Bills Discounted with bank
 Unliquidated damages
 Destruction by Flood
 product warranty
Open market operation is the means of implementing monetary
policy by which a central bank controls the short term interest rate and
the supply of base money in an economy, and thus indirectly the
total money supply. This involves meeting the demand of base money
at the target rate by buying and selling government securities, or
other financial instruments. Monetary targets such as inflation, interest
rates or exchange rates are used to guide this implementation.[1][2]
When there is an increased demand for base money, action is taken in
order to maintain the short term interest rate (that is, to increase the
supply of base money). The central bank goes to the open market to
buy a financial asset such as government bonds, foreign
currency or gold. To pay for this, bank reserves in the form of new base
money (for example newly printed cash) is transferred to the sellers
bank, and the sellers account is credited. Thus, the total amount of base
money in the economy has increased. Conversely, if the central bank
sells these assets in the open market, the amount of base money that
the buyer's bank holds decreases, effectively destroying base money.
Since most money is now in the form of electronic records rather than
cash, open market operations are conducted simply by electronically
increasing or decreasing ('crediting' or 'debiting') the amount of base
money that the bank has in its reserve account at the central bank.
Thus, the process does not literally require new currency. (However,
this will increase the central bank's requirement to print currency when
the member bank demands banknotes, in exchange for a decrease in
its electronic balance.

Possible targets of open market operations

 Under inflation targeting, open market operations target a specific
short term interest rate in the debt markets. This target is changed
periodically to achieve and maintain an inflation rate within a target
range. However, other variants of monetary policy also often target
interest rates: the US Federal Reserve, the Bank of England and
the European Central Bank use variations on interest rate targets to
guide open market operations.
 Besides interest rate targeting there are other possible targets of
open markets operations. A second possible target is the growth of
the money supply, as was the case in the U.S. in the late 1970s
through the early 1980s under Fed Chairman Paul Volcker.
 Under a currency board open market operations would be used to
achieve and maintain a fixed exchange rate with relation to some
foreign currency.
 Under a gold standard, notes would be convertible to gold, so
there would be no open market operations. However, open market
operations could be used to keep the value of a fiat currency
constant relative to gold.
 A central bank can also use a mixture of policy settings that
change depending on circumstances. A central bank may peg its
exchange rate (like a currency board) with different levels or forms of
commitment. The looser the exchange rate peg, the more latitude
the central bank has to target other variables (such as interest rates).
It may instead target a basket of foreign currencies rather than a
single currency. In some instances it is empowered to use additional
means other than open market operations, such as changes in
reserve requirements or capital controls, to achieve monetary
outcomes