From 3rd March onwards, PayPal will allow new bank withdrawals for its customers in India after receiving a 'Purpose Code' for the transaction
Electronic payment gateway PayPal has said that it would allow new bank withdrawals for its customers in India after receiving a 'Purpose Code' for the transaction.
In his blog, PayPal's business head for Asia-Pacific, Farhad Irani said, “When you select the ‘Withdraw Funds’ option on your PayPal account after 3rd March, we will ask you to fill out a new field entitled ‘Purpose Code’. This information is required under the laws of India in order to identify the nature of cross-border merchant transactions."
Mr Irani also clarified that Indian users will no longer be able to receive personal payments. Customers of Indian PayPal users will have three options for making any payment such as using the pay for purchases (goods or services) tab, completing PayPal checkout at the user's website and responding to PayPal “Request Money” instructions (invoices). However, for each payment, transaction users will have to provide a purpose code for the transaction.
The purpose code will help banks in India to furnish information required by the Reserve Bank of India to identify the nature of cross-border transactions, Mr Irani said.
He also said that according to Indian law, based on the value of withdrawal and the purpose code in the Indian customer's declaration, banks may require him/her to provide documentary proof such as invoices or goods receipt forms as applicable to reconcile with withdrawal.
Here is the list of purpose codes for Indian users of PayPal:
Freight volumes are up 3%, however, passenger yields are still 15% below peak levels and IATA expects losses for 2010 could be $5.60 billion
Airlines have started witnessing improvement in demand, but instead of profits they might register losses to the tune of $5.60 billion this year, the latest International Air Transport Association (IATA) report has said.
"The 3% increase in freight volumes from December to January is particularly encouraging. We can start to see the future with some cautious optimism. But better volumes do not necessarily mean better profits. Passenger yields are still 15% below peak levels and we expect 2010 losses to be at $5.60 billion," IATA director-general and chief executive Giovanni Bisignani said in a statement.
IATA has also said that demand for international scheduled air traffic has showed improvement in January this year. January passenger demand was up 6.4%, while a 1.2% increase in capacity pushed load factor to 75.9% compared to last year, it said.
International cargo demand showed a 28.3% improvement with a 3.7% increase in capacity, pushing load factor to 49.6%, which is a significant change from 40.1% recorded in January 2009.
The year-on-year increases reflect a steady improvement from the precipitous fall in demand that characterised the early part of 2009, rather than merely a dramatic improvement in the month this year, the report said.
However, demand must improve by a further 2% to return to the peak levels of early 2008, IATA said. But improvements are also geography-based, the report added.
The best signs of improvement have been seen in markets with strongest economic recovery like Asia, Latin America and the Middle East.
Asia-Pacific carriers experienced 6.5% increase in demand compared to the previous year. The region, which is leading the global economic recovery, has realised 31% demand improvement, while those in North America and Europe saw it increase by 2.1% and 3.1%, respectively.
Middle Eastern carriers grew throughout the recession with growth accelerating to 23.6% in January, IATA said.
With its rich pool of talent, technology ‘powerhouse’ India should be the IT incubator for the world. So why is the US still leading in enterprise and innovation?
The Budget has been disappointing for the information technology (IT) industry. The much-needed Software Technology Parks of India (STPI) scheme has not been extended. There are also no schemes to encourage innovation in IT. The only silver lining has been the generous funding allocated to the unique identity (UID) project. This will surely help software and hardware companies to generate more revenue.
For all the hype about India becoming a superpower in IT, the government consistently shows a lack of vision. Contrast this with the US. Even in such dire economic times, the US shows its mettle by investing for a bright future. The US govt is coming up with a new category of visas for founders of start-ups. The Bill has recently been introduced and is yet to pass.
The proposed new visa norms go something like this: If one can get funding of $250,000 for one's start-up—with $100,000 from a qualified US angel investor or a venture capitalist (VC)—one is eligible for a two-year visa to grow one's start-up. At the end of two years, if the start-up is able to generate a $1 million in revenue or get additional $1 million in funding or create five full-time jobs (not including jobs for children or spouse), the founder becomes eligible to get a legal residence. Hats off to the US, the eternal place for enterprise and innovation.
It is this spirit of the US that has cemented its place as the leader throughout the 20th century and now going into the 21st century, it is already laying the foundation for its continued leadership.
Indians on the other hand are happy to be contractors for US firms. In fact, a growing country such as India should be the hub of entrepreneurship due to its growing market and the government should have had all kinds of schemes to foster high-tech entrepreneurship.
But there is none. Let us remember one thing—of all the software which Indians use to make their outsourcing money, most have been invented in the US or European countries. Right from C, C++, Java, .Net, or the Internet or name any other innovative technology, nothing has come out of India. And I can assure you that if the government's current stand continues, none will come out in the future. We will have all kinds of excuses for being second grade. There is no dearth of excuses for inefficiency and incompetence in India.
Is it any wonder then, that for the top brains of India, the US is still a magnet? For all the hoopla about Indian brains coming back, most of the people who come back are managers. Very few of the people who do high-tech innovation come back to India. And when they come back, they either go back after a while, or worse still, they end up working in more mundane but lucrative fields.
A few weeks back, we had another unsavoury incident. Tata Consultancy Services, India's top outsourcing company, had its website hacked. A company that probably does security work for many clients could not keep its own website secure. The Tata Group is a great entity; I have high respect for them. I myself have worked for the Tata Group on several occasions. Nevertheless, I am disappointed here to see the state of security in one of India's premier companies.
We don’t know what caused the security breach. Perhaps, a very rare vulnerability was exploited. I expected at least a press statement from the Tata Group. However, the lack of response from them somehow gives me the hunch that it could be plain negligence in keeping one's own website secure. Maybe I am wrong; it is still not late for the Tata Group to mend matters.
Bottom-line, if we are not able to take measures to work on areas that could give us a leadership position, at least we should stop harping on how a great IT superpower we are. Remember that superpowers don’t get made overnight. The US has a big history of research in technology.
The transistor which is the precursor of the electronics revolution was invented in the US in the 1950s. What has India to show for, in comparison?
(Dr Samir Kelekar is founder-director of Teknotrends Software, Bengaluru.)