About Drip Pricing:

• Drip pricing is a pricing technique in which firms advertise only part of a product’s price and reveal other charges later as the customer goes through the buying process.
• Drip pricing may initially withhold unavoidable fees, such as booking, service, resort, or credit card fees, local hotel taxes, or any other add-ons like internet access or certain facilities and amenities that are required to use a product or service.
• These additional and often mandatory costs are then disclosed by the seller one by one or “dripped” to the buyer at the point of purchase.
• It is commonly used in the hospitality and travel markets, as well as for other online payments. 
• Companies may utilize a price-dipping approach in order to entice a customer into starting the purchase process, at which point the customer may not want to restart his or her search, once they find out the added costs.
• It can be frustrating for consumers, who typically want to know upfront how much a product or service will cost, and may feel duped by later add-ons.
• Drip pricing can make comparison shopping more difficult and penalize sellers who are more transparent with their pricing.
• An example of price dipping is the cost of an airplane ticket that doesn't include baggage fees. 

Q1: What is Predatory Pricing?

Predatory pricing is the illegal business practice of setting prices for a product unrealistically low in order to eliminate the competition. Predatory pricing violates antitrust laws, as its goal is to create a monopoly.

Source: Centre issues warning against ‘drip pricing’. What is it?

About MQ-9B Predator:

• It is a high-altitude, long-endurance armed Unmanned Aerial Vehicle (UAV), capable of remotely controlled or autonomous flight operations.
• It is a variant of the MQ-9 "Reaper" developed by General Atomics Aeronautical Systems (GA-ASI), with its primary purpose being for the United States Air Force (USAF).
• The United States uses these drones for surveillance, intelligence gathering, and airstrikes. 
• The MQ-9B drone has two variants: Sky Guardian and Sea Guardian. The latter has been in operation by the Indian Navy since 2020.
• Features:
  • It can carry up to 5,670 kg and has a fuel capacity of 2,721 kg.
  • It can operate at altitudes exceeding 40,000 feet.
  • It can fly as close as 250 metres from the ground without the target even having an inkling it is there unless spotted.
  • With a maximum endurance of 40 hours, they provide a reliable platform for prolonged surveillance.
  • It has a top speed of 275 mph, or 442 km/h.
  • It is armed with strike missiles, allowing it to engage and eliminate enemy targets with high precision. It can carry four Hellfire missiles and around 450 kg of bombs.
  • This feature enhances its effectiveness in various roles, including land and maritime surveillance, anti-submarine warfare, anti-surface warfare, electronic warfare, and expeditionary missions.
  • It is capable of automatic take-offs and landings, providing operational flexibility. 
  • It can safely integrate into civil airspace, enabling joint forces and civil authorities to obtain real-time situational awareness in the maritime domain, day or night.

Q1: What is an unmanned Aerial Vehicle (UAV)?

An unmanned aerial vehicle (UAV) is an aircraft that carries no human pilot or passengers. UAVs—sometimes called drones—can be fully or partially autonomous but are more often controlled remotely by a human pilot. RAND research has contributed to the public discussion on the use of drones for warfare and surveillance.

Source: India to strategically place 'hunter-killer' Predator drones from US in UP, Tamil Nadu

About Non-Banking Financial Company (NBFC):

• A NBFC is a company registered under the Companies Act, 1956, engaged in the business of loans and advances, the acquisition of shares/stocks/bonds/debentures/securities issued by the Government or local authority or other marketable securities of a like nature, leasing, hire-purchase, insurance business, chit business.
• It does not include any institution whose principal business is that of agriculture activity, industrial activity, the purchase or sale of any goods (other than securities) or providing any services and sale/purchase/construction of immovable property. 
• A non-banking institution which is a company and has the principal business of receiving deposits under any scheme or arrangement in one lump sum or in installments by way of contributions, or in any other manner, is also a NBFC (Residuary non-banking company).
• Generally, these institutions are not allowed to take traditional demand deposits from the public. They can only accept time deposits, and they do not provide savings or current account facilities.
  • They cannot accept deposits for a period less than 12 months and more than 60 months.
  • NBFCs cannot offer interest rates higher than the ceiling rate prescribed by RBI from time to time. The present ceiling is 12.5 per cent per annum.
• NBFCs also provide a wide range of monetary advice like chit-reserves and advances.
• NBFCs lend and make investments, and hence their activities are akin to that of banks; however, there are a few differences as given below:
  • NBFCs do not have a banking license;
  • NBFCs cannot accept demand deposits;
  • NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself;
  • Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not availableto depositors of NBFCs, unlike in the case of banks.
  • Unlike banks, NBFCs are not subjected to stringent and substantial regulations. 
• Regulation:
  • The functions of the NBFCs are managed by both the Ministry of Corporate Affairs and the RBI.
  • The RBI has the authority to issue licenses to NBFCs, regulate their operations, and ensure that they adhere to the established norms and regulations.
• NBFCs are categorized
  • In terms of the types of liabilities into Deposit and Non-Deposit accepting NBFCs,
  • Non-deposit taking NBFCs by their size into systemically importantand other non-deposit holding companies (NBFC-NDSI and NBFC-ND) and
  • By the kind of activity, they conduct.
• What are systemically important NBFCs?
  • NBFCs whose asset size is ₹ 500 crore or more as per the last audited balance sheet are considered systemically important NBFCs.
  • The rationale for such classification is that the activities of such NBFCs will have a bearing on the financial stability of the overall economy.
• Examples of NBFCs include investment banks, mortgage lenders, money market funds,insurance companies, equipment leasing companies, infrastructure finance companies, hedge funds, private equity funds, and P2P lenders.

Q1: What is the Deposit Insurance and Credit Guarantee Corporation (DICGC)?

DICGC is a wholly-owned subsidiary of the Reserve Bank of India (RBI). It provides deposit insurance that works as a protection cover for bank deposit holders when the bank fails to pay its depositors.The agency insures all kinds of deposit accounts of a bank, such as savings, current, recurring, and fixed deposits up to a limit of Rs. 5 lakh per account holder per bank. In case an individual's deposit exceeds Rs.5 lakh in a single bank, only Rs.5 lakh, including the principal and interest, will be paid by DICGC if the bank becomes bankrupt.

Source: NBFCs raise fixed deposit rates: Go for longer tenures in FDs with higher credit ratings

About Capital Gains Tax (CGT): 

• The term capital gains can be defined as profits accumulated from the sale of any capital asset.
  • Land, buildings, house property, vehicles, patents, trademarks, leasehold rights, machinery, and jewellery are a few examples of capital assets.
  • This includes having rights in or in relation to an Indian company.
  • It also includes the rights of management, control, or any other legal right. 
• Depending on the duration, capital gains can either be short-term or long-term.
• Since profits are categorised as an ‘income’, they are liable for taxation, which is known as CGT.
• Such taxes are levied when an asset is transferred between owners.
• This tax applies to both individuals and businesses.
• Taxpaying individuals can use tax-efficient financial strategies to reduce the burden of their CGT.
• There are two types of CGT: Short-term CGT and Long-term CGT
• Short-term CGT:
  • Any asset that is held for less than 36 months is termed as a short-term asset.
  • In the case of immovable properties, the duration is 24 months.
  • The profits generated through the sale of such an asset would be treated as short-term capital gain and would be taxed accordingly.
• Long-term CGT:
  • Any asset that is held for over 36 months is termed as a long-term asset.
  • Assets like preference shares, equities, UTI units, securities, equity-based Mutual Funds and zero-coupon bonds are also considered as long-term capital asset if they are held for over a year.
  • The profits generated through the sale of such an asset would be treated as long-term capital gain and would attract tax accordingly.

Q1: What are preference shares?

Preference shares, more commonly referred to as preferred stock, are shares of a company’s stock with dividends that are paid out to shareholders before common stock dividends are issued. If the company enters bankruptcy, preferred stockholders are entitled to be paid from company assets before common stockholders.

Source: FM's clarification on capital gains tax could see markets recover on Monday

About Participatory Notes:

• These are often referred to as PNs or P-Notes.
• These are financial instruments used by investors and hedge funds to invest in Indian securities, and no registration is required with the Security Exchange Board of India (SEBI).
• Investments flowing in through PNs are considered as offshore derivative investments.
• These are issued by registered foreign Portfolio Investors (FPIs) to overseas investors who wish to be part of the Indian stock market without registering themselves directly.
• While the FIIs have to report all such investments each quarter to SEBI, they need not disclose the identity of the actual investors.

What is Foreign Portfolio Investment?

• It refers to the purchase and holding of a wide array of foreign financial assets by investors seeking to invest in a country outside their own.
• Foreign portfolio investors have access to a range of investment instruments such as stocks, bonds, mutual funds, derivatives, fixed deposits, etc.
• FPI generally intends to invest money into the foreign country’s stock market to generate a quick return.
• In India, foreign portfolio investment is regulated by the Securities and Exchange Board of India (SEBI). 

Q1: What are derivatives?

Derivatives refers to a type of financial contract whose value is dependent on an underlying asset, group of assets, or benchmark. These contracts can be used to trade any number of assets and carry their own risks.

Source: FPIs domiciled at GIFT City allowed to issue P-notes to investors

About Nifty Non-Cyclical Index Fund:

• It is a type of mutual fund that aims to generate long-term capital growth by investing in securities of the Nifty Non-Cyclical Consumer Index (TRI).
• This index contains 30 companies that are not majorly impacted by economic instability and are in regular demand, making them a good investment option during economic downturns.
• Non-cyclical stocks are also known as defensive stocks; these stocks outperform their industry in the stock market despiteeconomic instability. 
• They are not affected by cyclical changes and are in constant demand due to the everyday needs of consumers, such as food, water, and other utilities.

Key Facts about NIFTY:

• NIFTY is a market index introduced by the National Stock Exchange (NSE),India's largest stock exchange.
• It is a blended word: National Stock Exchange and Fifty coined by the NSE.
• Nifty was established in 1996 with the name CNX Nifty. Further, in 2015, it was renamed Nifty 50.
• NIFTY 50 is a benchmark-based index and also the flagship of NSE.
• It represents the performance of the 50 largestand most actively traded stocks listed on the NSE.
• It includes stocks of companies from 12 sectors, such as financial services, information technology, consumer goods, metals, pharmaceuticals, energy, etc, and collectively represents the stock market and economic trends of India.
• NSE ranks companies based on free-float market capitalisation.

It is one of the two main stock market indices in India, the other being SENSEX, a product of the Bombay Stock Exchange (BSE).

Q1: What are Mutual funds?

Mutual funds are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities. They're managed by professional fund managers or management teams who make investment decisions based on the fund's objectives.

Source: Groww Mutual Fund launches Nifty Non-Cyclical Consumer Index Fund

About Goldene:

• It is the first free-standing 2D metal and is only one atom thick.
• How is it created?
  • Researchers first sandwiched an atomic monolayer of silicon between layers of titanium carbide.
  • When they deposited gold on top of this sandwich structure, the gold atoms diffused into the material and replaced the silicon atoms, forming a trapped monolayer of gold atoms.
  • Subsequently, scientists etched away the titanium carbide layers to create a free-standing, one atom thick layer of gold.
  • This was done with the help of an age-old Japanese technique used to forge katanas and high-quality knives, using a chemical popularly known as Murakami’s reagent.
• These sheets of goldene are roughly 100 nano metres thick (a nanometre is a billionth of a metre), approximately 400 times thinner than the thinnest commercially available gold leaf.
• Applications
  • It can be used in the electronics industry.
  • It could also be used in carbon dioxide conversion, hydrogen-generating catalysis, selective production of value-added chemicals, hydrogen production, water purification, etc.
• Significance: It holds promise as a great catalyst because it’s much more economically viable than thicker, three-dimensional gold.

Q1: What is Murakami's reagent?

It is an etching reagent developed for use in the investigation of the structure of iron-carbon-chromium alloys. It consists of a solution of 10 g potassium ferricyanide, 10 g potassium hydroxide, and 100 mL water.

Source: GOLDENE: A sheet of gold that is only one atom thick

About Sahyadri Tiger Reserve:

• It is located in the Sahyadri Ranges of the Western Ghats in Maharashtra.
• It was notified in 2010 by amalgamating the Chandoli national park and Koyna wildlife sanctuary.
• The region of this Tiger Reserve includes the area around the Koyna Dam, the Warna River, and many other small rivers and streams originating from the Western Ghats and flowing to the east.
• Unique features
  • It is undulating with steep escarpments along western boundary.
  • The most distinct feature of the Tiger Reserve is the presence of numerous barren rocky and lateritic plateaus, locally called “Sadas”, with less perennial vegetation and overhanging cliffs on the edges along with numerous fallen boulders with dense thorny bushes.
  • Sahyadri Tiger Reserve is the only place where climax and near-climax vegetations are plentiful and prospects of adverse anthropogenic influence in the future are minimal.
• Vegetation: The forest cover here is that of moist evergreen, semi-evergreen, moist, and dry deciduous vegetation.
• Flora: There are many medicinal and fruit-bearing trees along with the commercial hard wood trees in the reserve.
• Fauna: Tiger, leopard, and some lesser cats along with the wolf, jackal, and wild dog.
• Other tiger reserves of Maharashtra: Melghat Tiger Reserve, Bor Tiger Reserve, Nawegaon-Nagzira Tiger Reserve, Pench Tiger Reserve and Tadoba-Andhari Tiger Reserve.

Q1: What is the National Tiger Conservation Authority (NTCA)?

NTCA is a statutory body under the Ministry of Environment, Forest, and Climate Change (MoEFCC). It was established in 2006 under Wildlife (Protection) Act 1972.

Source: Maharashtra gears up for tiger translocation to Sahyadri reserve in bid to revive numbers

About Catatumbo lightning:

• It is a mesmerising natural phenomenon that occurs over the Catatumbo River in Venezuela, where lightning strikes almost continuously.
• This phenomenon primarily happens at the mouth of the Catatumbo River, where it meets Lake Maracaibo, the largest lake in Venezuela.
• How does it occurs?
  • Warm, moist air from the Caribbean Sea is pushed towards the Andes mountains, where it collides with cooler air descending from the peaks.
  • This collision creates a perfect storm of sorts, as the warmer air is forced to rise rapidly by the shape of the local landscape. And as it does, it cools and condenses, forming towering cumulonimbus clouds.
  • Meanwhile, the combination of strong winds and temperature differentials generates electrical charges within these clouds.
  • The cumulonimbus clouds — sometimes reaching heights of more than 5 km — load up on static electricity.
  • When the electrical potential within the clouds becomes too great, it discharges in the form of lightning.
• Catatumbo lightning is distinguished by its frequency and duration: the strikes occur for up to 160 nights in a year, with an average of 28 lightning strikes per minute at its peak. Thanks to this constant flow of current, the area has earned the title of “the lightning capital of the world”.

Key facts about Lake Maracaibo

• It is located in Venezuela and is the largest lake in Latin America.
• It is also among the oldest water bodies on the planet. Its proximity to the Andes Mountains and the Caribbean Sea creates a unique geographical setup that plays a crucial role in the frequency of lightning in the region.

Q1: What is a severe thunderstorm? 

A thunderstorm is classified as “severe” when it contains one or more of the following: hail one inch or greater, winds gusting in excess of 50 knots (57.5 mph), or a tornado.

Source: Catatumbo lightning: a torrent of current

About Hopen Island:

• It is a small, remote island in the far southeast of Svalbard and part of the Southeast Svalbard Nature Reserve.
• It is mostly covered by rocks and continuous permafrost, with a very narrow beach from which the landscape rises sharply.
• In the north of the island there are steep cliffs with horizontal shelves which are ideal for breeding seabirds, including the globally vulnerable Atlantic puffin.
• Fauna: There are huge seabird colonies on steep cliffs with Brunich’s Guillemots, Kittywakes, Fulmars etc.
• The numbers of breeding birds here make Hopen one of the most important seabird islands of the Barents Sea.

Key facts about Walrus

• It is a pinniped, or fin-footed mammal, and is related to seals and sea lions. Their skin is covered by a thin layer of small coarse hairs.
• It is easily recognised by its sheer size and magnificent tusks. It is a keystone species in Arctic marine ecosystems.
• Walruses are terrestrial, marine mammals, meaning they can swim in the ocean and walk on land and sea ice.
• They typically eat mollusks, but worms, snails, soft shell crabs, shrimp, and sea cucumbers can also be found on their menu.
• Distribution: Walruses live in Arctic and sub-Arctic regions of the world near the North Pole. They can be found in the Pacific Ocean, Atlantic Ocean, and Arctic Ocean.
• Threats: It is threatened by commercial hunting, but today the biggest danger it faces is climate change.
• Conservation status:
  • IUCN Red List: Vulnerable

Q1: What is Permafrost?

Permafrost is any ground that remains completely frozen—32°F (0°C) or colder—for at least two years straight. These permanently frozen grounds are most common in regions with high mountains and in Earth’s higher latitudes—near the North and South Poles.