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जोखिम प्रबंधन खिभाग/ Risk Management Department

प्रधान कार्ाालर्, सी-24, “जी” ब्लॉक, बांद्रा कुलाा कॉम्प्लेक्स, बांद्रा (प)ू, मुबंई – 400051

Head Office, C-24, “G” Block, Bandra Kurla Complex, Bandra (East), Mumbai-400051

प्रस्ताव हेतु अनुरोध

उत्कृष्ट अंतरराष्रीय पद्धततयों और बेसल I, II और III पर भारतीय ररजवव बैंक के दिशातनिेशों के अनुरूप

नाबार्व में उद्यम-व्यापी समन्ववत जोखिम प्रबंधन संरचना के कायावववयन के ललए सम्पूर्व सॉफ्टवेयर सोल्यूशन हेतु वेंर्र की तनयुन्तत के ललए

प्रस्ताव भेजने का अनुरोध (आरएफ़पी में पररयोजना के रूप में सदंर्भित)

Request for Proposal

For

End to End Software Solution for Implementation

of Enterprise-wide Integrated Risk Management

Architecture in accordance with the International

Best Practices and Guidelines of RBI on Basel I,

Basel II, Basel III (Also referred to as Project in this RFP)

तनवविा सखं्या: एनबी.एचओ.आरएमर्ी/ 01 / आरएमर्ी-55/ 2018-19 दिनांक 23 जुलाई 2018 Tender Number: NB.HO.RMD/ 01 /RMD-55/2018-19 Dated: 23 July 2018

तनवविा िस्तावेज की लागत: रु. 10,000/- (रुपए िस हजार मात्र) Cost of Tender Document: Rs. 10,000/- (Rupees Ten Thousand only)

बयाना जमारालश [ईएमर्ी] की लागत: रु. 15,00,000/- (रुपए पदं्रह लाि मात्र) Cost of Earnest Money Deposit [EMD]: Rs.15, 00,000/- (Rs. Fifteen lakh only)

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Contents

1. Invitation for Bids: ............................................................................................................ 12

2. Tender Notice .................................................................................................................... 13

3. Instructions for Bidders ..................................................................................................... 17

i. Request for Additional Information ......................................................................... 17

ii. Rejection / Acceptance of Bid .................................................................................... 17

iii. Cancellation of Bid ................................................................................................... 17

iv. Period of Validity of Bids ........................................................................................ 17

4. Who can submit the bid? ................................................................................................... 17

5. Disclaimer ......................................................................................................................... 19

6. INSTRUCTION FOR BID SUBMISSION ...................................................................... 20

7. Background: ...................................................................................................................... 25

a) About NABARD ............................................................................................................ 25

i. Management Structure ............................................................................................... 25

ii. Organisational Structure ............................................................................................ 25

iii. Key functions of NABARD ...................................................................................... 27

b) Risk Management Set-up in NABARD ............................................................................ 27

i. Credit Risk ................................................................................................................ 28

ii. Market Risk ........................................................................................................... 28

iii. Liquidity and Interest Rate Risk ........................................................................ 28

iv. Operational Risk ................................................................................................... 28

v. Compliance Risk ...................................................................................................... 28

8. Scope of Work ................................................................................................................... 30

a) Objective of RFP ...................................................................................................... 30

b) Objective of the Project ........................................................................................... 30

c) Responsibilities of Bidder .......................................................................................... 31

d) Broad level overview ................................................................................................ 35

e) RACI Matrix ................................................................................................................. 37

f) Broad Scope of Work .................................................................................................. 38

g) Detailed Scope of Work ........................................................................................... 39

i. Gap Identification & Resolution ................................................................................ 39

ii. Design of Solution ................................................................................................ 39

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iii. Parameterization, Configuration and Customization of Software ................ 40

iv. Testing ................................................................................................................... 40

v. Training ..................................................................................................................... 41

vi. Implementation .................................................................................................... 44

vii. Annual Technical Support (ATS)/Annual Maintenance Contract (AMC)and

Helpdesk .......................................................................................................................... 46

viii. Information Security ........................................................................................... 47

9. Functional Requirements .................................................................................................. 48

10. Technical Requirements: ................................................................................................ 48

11. Pricing ............................................................................................................................ 48

12. Payment .......................................................................................................................... 48

13. Eligibility Criteria .......................................................................................................... 49

14. Signatory ........................................................................................................................ 52

15. Amendment .................................................................................................................... 52

16. Pre-Bid Meeting ............................................................................................................. 52

17. Opening of Quotation ..................................................................................................... 52

18. Earnest Money Deposit (EMD) ..................................................................................... 53

19. Ethical Standard ............................................................................................................. 54

20. Information Security of the Bank ................................................................................... 54

21. Integrity Pact .................................................................................................................. 55

22. Indemnification .............................................................................................................. 55

23. Security deposit by way of Performance Bank Guarantee ............................................. 56

24. Insurance ........................................................................................................................ 57

25. Price Composition .......................................................................................................... 57

26. No Price Variations ........................................................................................................ 58

27. Import Obligations ......................................................................................................... 58

28. Time period for completion of assignment .................................................................... 58

29. Delay in adhering to the project timelines/Liquidated damages .................................... 58

30. Confidentiality ................................................................................................................ 59

31. Settlement of disputes by Arbitration ............................................................................ 60

32. Termination .................................................................................................................... 61

a) Termination For Default ......................................................................................... 61

b) Termination for Insolvency .................................................................................... 61

c) Termination for convenience ..................................................................................... 62

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d) Termination – Key Terms & Conditions .............................................................. 62

e) Consequences of Termination ................................................................................... 62

f) Exit Option ................................................................................................................... 63

g) Termination of partner of Bidder .......................................................................... 63

33. Right to Accept or Reject Quotation .............................................................................. 64

34. Right to alter quantities/ components ............................................................................. 64

35. Force Majeure ................................................................................................................ 64

36. Selection Strategy ........................................................................................................... 64

a. Evaluation of Technical Bid:- .................................................................................... 65

i. Scoring Methodology for Functional Requirements (FR) ................................. 65

ii. Scoring Methodology for Technical Requirements (TR) ................................ 66

iii. Scoring Methodology for Bid Presentation & Product Demonstration ........ 66

iv. Scoring Methodology for Site References and Team Strength ......................................... 67

v. Scoring Methodology for Past Experience (PE) ...................................................... 68

vi. Bidder Evaluation Scoring ............................................................................................... 68

b. Evaluation of Commercial Bid:- ................................................................................ 71

c. Techno-Commercial Scoring (Overall Assessment for calculation of L1) ........... 71

37. Additional Instructions for Bidders ................................................................................ 72

a) Ownership of Software ............................................................................................ 72

b) Source Code .............................................................................................................. 72

c) Supply of Software Licenses....................................................................................... 73

d) Software Delivery & Installation ............................................................................ 74

e) Acceptance of software ............................................................................................... 75

f) Inspection and Tests ................................................................................................... 75

g) Information Ownership .......................................................................................... 75

h) Adherence to Standards .......................................................................................... 76

i) Security Configuration, Monitoring and Audit ....................................................... 76

j) Considerations for Proposed Hardware & Software to support the EWIRM

Solution ................................................................................................................................ 77

k) Performance Guidelines ......................................................................................... 77

l) Service Level Agreement (SLA) ................................................................................. 78

m) SLA for Hardware & Software ................................................................................ 79

n) Time Schedule .......................................................................................................... 81

o) Project Documentation and Manuals ............................................................................. 82

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p) Reporting Progress .................................................................................................. 82

q) Warranty & Annual Maintenance.......................................................................... 82

r) Terms and Conditions during Warranty and AMC/ ATS Period ......................... 83

38. Award of Contract .......................................................................................................... 84

a) Notification of Acceptance of Bid .......................................................................... 84

b) Project management: .............................................................................................. 84

c) Signing of contract ...................................................................................................... 85

d) Conditions precedent to contract .......................................................................... 85

e) Use of Contract Documents & Information ............................................................. 85

f) ‘No Claim’ Certificate .................................................................................................. 86

g) Publicity .................................................................................................................... 86

h) General Terms and Conditions .............................................................................. 86

i) Litigation....................................................................................................................... 86

Annexure-1: Check List for Submission of Bid Documents .............................................. 88

Annexure-2: Authorization Letter Format ................................................................................ 90

Annexure-3: Non-Disclosure Agreement Form ........................................................................ 92

Annexure-4: Check list for submission of eligibility criteria .................................................. 101

Annexure-5: Profile of bidder and OEM ................................................................................. 102

Annexure-6: Implementation methodology ............................................................................ 104

Annexure-7: Reference site details.......................................................................................... 105

Annexure-8: Past Experience .................................................................................................. 107

Annexure-9: Team profile* ..................................................................................................... 108

Annexure-10: Training ............................................................................................................ 110

Annexure-11: Cover Letter for Commercial Bid .................................................................... 111

Annexure-12: Format for furnishing the Commercial Bid ...................................................... 113

Annexure-13: Bid submission Covering Letter....................................................................... 116

Annexure-14: Notification of Acceptance .............................................................................. 118

Annexure-15: Specimen contract form ................................................................................... 119

Annexure-16: Performance Bank Guarantee Format .............................................................. 126

Annexure-17: RACI Chart ...................................................................................................... 130

Annexure-18: RBI communication to AIFIs regarding Review of Regulatory Framework for the

AIFIs dated November 28, 2016 ............................................................................................. 132

Annexure-19: Format for furnishing Bank Guarantee in lieu of Earnest Money Deposit ...... 133

Annexure-20: Pre Contract Integrity Pact ............................................................................... 136

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Annexure-21: Confidentiality Undertaking Format ................................................................ 143

Annexure-22: RFP Download Declaration ............................................................................. 145

Annexure-23: Declaration that the Bidder is not any other Bank’s/ PSU’s/ Govt.’s Vendor

Blacklist ................................................................................................................................... 146

Annexure-24: Terms and Conditions Compliance Table ........................................................ 147

Annexure-25: Details of Service/ Support Centre ................................................................... 149

Annexure-26: Manufacturer’s / Developer’s Authorization Form (MAF / DAF) .................. 150

Annexure-27: Declaration of Clean Track Record.................................................................. 151

Annexure-28: Letter of Indemnity and Undertaking ............................................................... 152

Annexure-29: Present Setup of IT Systems of the Bank ......................................................... 155

Annexure-30: Requirement for Sizing .................................................................................... 158

Annexure 31 – Functional Requirements ................................................................................ 163

i. Functional Requirements for Credit Risk: ...................................................................... 163

ii. Functional Requirements for Operational Risk: ............................................................. 183

iii. Functional Requirement for Business Continuity Management (BCM) Plan ................ 196

Impact Analysis – Maximum Acceptable Outage (MAO)/ Maximum ................................... 197

Time Period of Disruption (MTPD) ........................................................................................ 197

Timeline Summary .................................................................................................................. 197

Monitor Review and Control Gaps ......................................................................................... 197

Incident response Procedure - Types of Incidents ................................................................... 197

Classification of Incidents ............................................................................................... 197

Crisis Management Structure & Process ................................................................................. 198

Crisis Management Structure at Head office ................................................................ 198

Crisis Communication at Head Office ........................................................................... 198

Crisis Management Structure at Regional Offices and TEs........................................ 198

Emergency Response and Safety Plan .................................................................................... 198

Crisis Communication Plan ..................................................................................................... 198

BCM Steering Committee and Response Team Information ..................................... 198

Emergency Contact Details ............................................................................................. 198

Template for Generating Incident Report..................................................................... 198

Performance Evaluation Methodology .......................................................................... 198

BCM Change Management .............................................................................................. 198

Unscheduled BCM updates ............................................................................................. 198

Incident based BCP updates ........................................................................................... 198

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39. Exercising Methodology .............................................................................................. 198

iv. Functional Requirements for Compliance Risk: ............................................................. 199

v. Functional Requirements for Market Risk: ..................................................................... 200

vi. Functional Requirements in Respect of Pillar- II, Pillar- III & Basel III and Integrated

Capital Computation Module: ................................................................................................. 227

vii. Functional Requirements in Respect IFRS 9 and ECL Calculation: ........................... 231

Annexure 33: Pre-Bid Query format ....................................................................................... 254

Annexure 34 - Forwarding Letter (Technical Bid) ................................................................. 255

Annexure 35: Details and Specifications of Hardware ........................................................... 257

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Glossary

Sl.No. Acronym/

Term Used Definition

1. AFS Available For Sale

2. AIFI All India Financial Institution

3. AGL Aggregate Gap Limit

4. AIRB Advanced Internal Ratings Based

5. ALM Asset And Liability Management

6. AMA Advanced Measurement Approach

7. AMFI Association Of Mutual Funds In India

8. ASCII American Standard Code For Information

Interchange

9. ATS Annual Technical Support

10. Bank National Bank For Agriculture & Rural

Development Bank (NABARD)

12. Basel II

Guidelines

Framework for Capital Measurement and

Capital Standards issued by Basel

Committee on Banking Supervision

13. Basel II

RBI

Guidelines

Master Circular - Prudential Guidelines on

Capital Adequacy and

Market Discipline- New Capital Adequacy

Framework (NCAF) Implementation of

the Advanced Measurement Approach

(AMA) for Calculation of Capital Charge

for Operational Risk - Guidelines Capital

Adequacy - The Internal Ratings Based

(IRB) Approach to Calculate Capital

Requirement for Credit Risk

Prudential Guidelines on Capital

Adequacy - Market Risk under

Standardized Measurement Method

(SMM)

14. Basel III

Guidelines

A global regulatory framework for more

resilient Banks and Banking systems and

International framework for liquidity risk

measurement, standard and monitoring

15. BCBS Basel Committee on Banking Supervision

16. BEICF Business Environment And Internal

Control Factors

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17. Bidder The bidder providing or intending to

provide the Services under this Contract

18. BIS Bank For International Settlements

19. BSE Bombay Stock Exchange

20. CBS Core Banking Solutions

21. CCIL Clearing Corporation Of India Ltd.

22. CD Certificate Of Deposit/Compact Disc

23. CDS Credit Default Swap

24. Contract

The work order issued by NABARD, Head

Office, Mumbai and acceptance of the

same by the bidder of services, including

all attachments and appendices thereto

and all documents incorporated by

reference therein

25. Contract

Price

The price payable to the Bidder under the

Contract for the full and proper

performance of its contractual obligations

26. CRISIL Credit Rating Information Services Of

India Limited

27. CRMS Credit Risk Management System

28. CSV Comma-Separated Value

29. CVA Credit Valuation Adjustment

30. DIT Department Of Information Technology

31. DVD Digital Video Disc

32. DVP Delivery Versus Payment

33. EAD Exposure At Default

34. EDW Enterprise Data Warehouse

35. EWIRM Enterprise Wide Integrated Risk

Management

36. FEDAI Foreign Exchange Dealers’ Association Of

India

37. FIFO First In First Out

38. FIMMDA Fixed Income Money Market And

Derivatives Association Of India

39. FIRB Foundation Internal Ratings Based

40. FX Foreign Exchange

41. GRC Governance, Risk and Compliance

42. GL General Ledger

43. GLM Generalised Linear Model

44. GLMM Generalised Linear Mixed Model

45. GUI Graphical User Interface

46. HFT Held For Trade

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47. HRMS Human Resource Management System

48. HTM Held To Maturity

49. ICAAP Internal Capital Adequacy & Assessment

Procedure

50. IGL Individual Gap Limit

51. IMA Internal Model Approach

52. IMF International Monetary Fund

53. IR Interest Rate

54. iRAC Income Recognition And Asset

Classification

55. IRB Internal Ratings Based

56. IRMS Integrated Risk Management System

57. IT Information Technology

58. KRI Key Risk Indicators

59. LDP Low Default Portfolio

60. LGD Loss Given Default

61. LIBOR London Interbank Offer Rate

62. LIFO Last In First Out

63. M Effective Maturity

64. MIS Management Information System

65. MRMS Market Risk Management System

66. MTM Marked To Market

67. NABARD National Bank For Agriculture And Rural

Development

68. NAS Network Attached Storage

69. NCAF New Capital Adequacy Framework

70. NDS Negotiated Dealing System

71. NOOP Net Overnight Open Position Limit

72. NPA Non-Performing Asset

73. NPV Net Present Value

74. NSE National Stock Exchange

75. OEM Original Equipment Manufacturer/

Product Vendor

76. ORMF Operational Risk Management

Framework

77. ORMS Operational Risk Management System

78. OSMOS Off-Site Monitoring And Surveillance

79. OTC Over The Counter

80. PD Probability Of Default

81. PFE Potential Future Exposure

82. P&L Profit & Loss

83. PVBP Price Value Of A Basis Point.

84. QRRE Qualified Revolving Retail Exposures

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85. RAPM Risk Adjusted Performance Measurement

86. RAROC Risk Adjusted Return On Capital

87. RBI Reserve Bank Of India

88. RCA Root Cause Analysis

89. RCSA Risk And Control Self-Assessment

90. RFP Request For Proposal

91. RISC Reduced Instruction Set Computer

92. RMD Risk Management Department

93. RO Regional Office

94. RTGS Real Time Gross Settlement

95. RWA Risk Weighted Assets

96. Services Software and related services and other

such obligations of the Bidder as

applicable under the Contract

97. SI System Integrator

98. SL Specialized Lending

99. SLA Service Level Agreement

100. SMM Standardized Measurement Method

101. SMS Short Message Service

102. Solution Software solution for implementation of

EWIRM System

103. SPEC Standard Performance Evaluation

Corporation

104. SWIFT Society For Worldwide Interbank

Financial Telecommunication

105. TBO Treasury Back Office

106. TCC Terms and Conditions of Contract

107. TGA Traditional Gap Analysis

108. TMO Treasury Mid Office

109. TO Technical Offer

110. TSA The Standardized Approach

111. UAT User Acceptance Testing

112. VaR Value at Risk

113. Vendor The bidder providing or intending to

provide the Services under this Contract

114. XML Extensible Mark-Up Language

115. ZCYC Zero Coupon Yield Curve

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1. Invitation for Bids:

National Bank for Agriculture and Rural Development (NABARD), is a body

corporate established under the NABARD Act, 1981 (hereinafter referred to as "The

Bank") having its Head Office at Plot No. C-24, Block 'G', Bandra-Kurla Complex,

Bandra (East), Mumbai - 400051 and Regional Offices (ROs) / Training

Establishments (TEs) in different cities across the country.

The Bank intends to invite Techno -Commercial bids from eligible Bidder to

provide end to end software solution for Implementation of Enterprise-wide

Integrated Risk Management Architecture in accordance with the International

Best Practices and Guidelines of RBI on Basel I, Basel II, and Basel III.

A complete set of Request for Proposal (RFP) can be obtained during office hours

on all working days in person. Alternatively, complete set of RFP for the above

purpose can be downloaded from Bank’s official website www.nabard.org. The

bidder who has purchased/ downloaded the RFP is required to submit a non-

refundable fee of Rs.10, 000/- (Rupees ten thousand only) in the form of DD, in

favour of NABARD payable at Mumbai during office hours within the last date and

time of submission of bid, failing which the bid of the concerned bidder will not be

entertained. The hard copy of this document (RFP) procured from the Bank or

downloaded from the official website, will alone be treated as authenticated copy

for all purposes.

http://www.nabard.org/

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2. Tender Notice

Bid Collection and submission details are given below.

Bid Reference number : NB.HO./RMD/ 01 /RMD-55/2018-19

Cost of RFP (non-refundable) : Rs.10, 000/- (Rupees ten thousand only) in the form of DD, in favour of NABARD payable at Mumbai.

Earnest Money Deposit (Refundable)

: Rs. 15,00,000/- (Rupees Fifteen Lakh only) by way of a separate Bankers Cheque/Demand Draft/Pay Order in favour of NABARD payable at Mumbai. OR With an equivalent amount of Bank Guarantee (BG) issued by a Scheduled Commercial Bank valid for 180 days from the date of opening of the Tender as per format given in the Annexure 19.

Date of issue of RFP : 23 July 2018

Last date for submission of pre-bid queries

: 03 August 2018 at 03.00 pm as per Annexure 33

Pre Bid Meeting : 20 August 2018 at 11.00 am

Last date and time for submission of Bids

: 31 August 2018 at 3.00 pm

Opening of Technical Bid : 31 August 2018 at 3.30 pm at NABARD, Head Office, Mumbai

Address for submission of bids : The Chief General Manager Risk Management Department, National Bank for Agriculture & Rural Development, 3rd Floor, C Wing, Plot No C-24, G Block Bandra Kurla Complex Bandra (E) Mumbai - 400051

Contact Person : 1. Shri A M Yadav, General Manager, 022- 26531972, 9422986071 2. Shri R Sankar, 022-26539429, 9443380618 3. Ms Priyanka Saini, 022-26539473, 9618229675

E– mail : erms.rmd@nabard.org

No. of envelopes (Non window, sealed) to be submitted

: Two (2) Envelopes Sealed Envelope 1 containing :- Technical Bid + EMD (DD/BG) + Cost for RFP Document Sealed Envelope 2 containing:- Commercial Bid

Note:-

1. Before bidding, the bidders are requested to carefully examine the RFP

Document and the terms and conditions specified therein. If any bidder

requires any clarification on this RFP, may notify the Bank in writing or by

email at the Bank’s mailing address indicated in the RFP on or before 03

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August 2018 (Friday) at 03.00 pm. Bidders should notify the Bank of

any error, omission, or discrepancy found in this RFP document not later

than 03 August 2018 (Friday) at 03.00 pm.

2. No suggestions or queries shall be entertained after the pre-bid meeting.

3. Bank makes no warranty, express or implied, and shall incur no liability whatsoever under any law, statute, rules or regulations as to the accuracy, reliability or completeness of this RFP. Bank may in its absolute discretion, but without being under any obligation to do so, update, amend or supplement the information in this RFP.

4. This RFP is being floated to seek appropriate software solutions for the

implementation of Enterprise Wide Integrated Risk Management

Architecture in accordance with the International Best Practices and

Guidelines of RBI on Basel I, Basel II, and Basel III. Bank invites responses

from bidder to propose a contractual arrangement for the provision,

implementation and after-sales support as described in this document.

5. The purpose of this RFP is to enable the bidder to communicate their

qualifications and product specifications to facilitate the selection of an

appropriate risk management software solution.

6. The check list for submission of annexures to be attached along with the bid

are given in Annexure-1

7. All costs and expenses (whether in terms of time or money) incurred by the

bidders in any way associated with the development, preparation and

submission of responses, including but not limited to attendance at

meetings, discussions, demonstrations and for providing any additional

information required by Bank, will be borne entirely and exclusively by the

bidders.

8. The bidders must conduct its own investigation and analysis regarding any

information contained in the RFP document and the meaning and impact of

that information.

9. All bids (Technical & Commercial) must be submitted at the same time giving

full particulars in separate sealed envelopes at the Bank’s address within the

time period specified above.

10. The Bank reserves the right to accept or reject in part or full any or all the

offers without assigning any reasons whatsoever.

11. No further discussion/interface will be entertained with bidders whose bids

have been technically disqualified.

12. Bids will be opened in the presence of bidders’ representatives who choose

to attend on the bid opening date. No separate intimation will be given in this

regard to the bidders for deputing their representatives. However, the date

and time for opening of Commercial bid shall be intimated separately by

phone/email. The representative/s has/have to submit an authority letter

duly signed by the bidder, authorizing him to represent and attend the bid

opening on behalf of the bidder. The format of the authorization letter is

given in Annexure-2.

13. The scope of the services specified under this RFP is governed by the

guidelines issued by RBI on implementation of Basel I/II/III, IndAS

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Guidelines and guidelines on Expected Credit loss and RBI communication

to AIFIs regarding Review of Regulatory Framework for the AIFIs dated

November 28, 2016, subject to regulatory modification if any (as enclosed as

Annexure-18). Any change made by RBI/GOI in the existing guidelines or

issue of fresh guidelines on these matters shall automatically enlarge the

scope of work specified under this RFP and the duties of selected bidder shall

deemed to be discharged only when the Bank complies with the revised

guidelines issued on this matter. There will be no cost escalation on account

of this and the bidder shall complete the project as per the revised scope of

work.

14. The Bank expressly stipulates that the selection of bidder under this RFP is

on the understanding that this RFP contains only the principal provisions for

the entire assignment and the services rendered in accordance with the scope

of work defined under this RFP are only a part of the assignment. The bidder

shall perform all such tasks, render requisite services as may be required for

successful completion of the project to the satisfaction of the Bank at no

additional cost to the Bank, to attain the underlying objectives for which this

RFP is floated.

15. The Bank reserves the right to change the dates mentioned above or in the

RFP, which will be communicated through the Bank’s web site.

16. Any bid submitted without payment of Rs. 10,000/- (Rupees ten thousand

only), being the cost of RFP, shall be immediately rejected.

17. Non enclosure of Earnest Money Deposit (EMD) of Rs 15.00 lakh will result

in rejection of bid.

18. The bidder shall ensure compliance of Central Vigilance Commission

guidelines (CVC) issued/ to be issued from time to time pertaining to the

work covered under this RFP.

19. No binding legal relationship will exist between any of the bidder and the

Bank until execution of a contractual agreement to the full satisfaction of the

Bank.

20. The bidder will, by responding to the Bank’s RFP document, be deemed to

have accepted the terms as stated in this RFP document.

21. Finally selected bidder based on terms and conditions this RFP should

supply, install and commission a comprehensive software solution in our

Bank for implementing an Enterprise-wide Integrated Risk Management

Architecture in accordance with the International Best Practices and

guidelines of RBI on Basel I, Basel II & Basel III.

22. The proposed solution should cover all the Departments/ Regional Offices/

Training Establishments of the Bank as decided by the Bank and have the

capability to scale up for meeting future requirements.

23. NABARD would provide the required hardware in its DC for hosting the

ERMS software. The details of the Hardware required for the ERMS solution

may be indicated in the format given in Annexure 35.

24. NABARD would provision the required servers in the form of VMs in its

hardware (Hyper Converged Infrastructure- HCI) and make available to the

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ERMS Vendor for installation of required software including the OS. The

vendor shall clearly demarcate the environments into Production,

Development and Testing.

25. MS SQL Server and Oracle Database are the preferred database for

NABARD. It is possible that the database license could be based on the

number of cores/ processors in the system. If the license is processer / core

based, NABARD would provision separate hardware (outside the HCI) and

provision the same for installation of database. Therefore, vendor should

indicate the server capacity requirements accordingly and also indicate the

number of licenses required.

26. Based on the number of users, the vendor may calculate and indicate the

bandwidth requirement on the MPLS network (WAN) of NABARD. If there

is a requirement for accessing the ERMS software through Internet, the

bandwidth requirement on the ILL may be calculated and indicated based on

the number of users.

27. As regards DR setup for the ERMS software, the hardware requirement may

be indicated in Annexure 35 by removing the requirements of Testing,

DevOps, etc.

28. As regards the replication of the VMs and Database from DC to DR, NABARD

would provide block-to-block replication for all the VMs at the DR with an

RPO of 15 minutes. However, if the vendor proposes to have any specific

replication tool for its database or any other software with a much tighter

RPO, then the required software along with the licenses would have to be

provided by the Software Vendor with Commercials for the same.

29. All Licenses should be obtained in the name of NABARD.

30. All software’s proposed in the solution shall be compatible with the hardware

set up of NABARD.

31. The software licenses, including the licenses for the Operating Systems,

Middleware, Webserver, Database, etc., (to be installed on the bare-metal

Virtual Machines) both for the DC & DR and support licenses for the

softwares would be provided by the ERMS Vendor and cost for the same

included in the commercial bid for the full period of the project.

32. NABARD would take care of backup of the entire ERMS set up on a D2D

appliance installed in both DC and DR and also on Tape Drives at the DC.

The backup software proposed to be used is HP Data Protector which would

be provided by NABARD. The Software Vendor shall work with RMD / DIT

of NABARD to ensure that the backup is configured as per BCM Policy. The

Vendor shall set up the backup procedure, test for its working and also

periodically (monthly basis) verify the integrity of the backup.

17

3. Instructions for Bidders

i. Request for Additional Information

Bidders are required to direct all communications for any clarification related to

this RFP, to the Designated Bank officials and must communicate the same in

writing (address for communication is given in table titled ‘Bid collection and

submission details’ ). All queries relating to the RFP, technical or otherwise, must

be in writing only i.e. either via physical or electronic mail. The Bank will try to

reply, without any obligation in respect thereof, every reasonable query raised by

the Bidder in the manner specified.

However, the Bank will not answer any communication reaching the Bank later

than 03.00 pm on 03 August 2018.

ii. Rejection / Acceptance of Bid

The Bank reserves the right to accept or reject any or all the bids without

assigning any reason whatsoever. Any decision of the Bank in this regard shall be

final, conclusive and binding on the bidder.

iii. Cancellation of Bid

The Bank reserves right to re-issue/re-commence the entire bid process and or

any part in case of any anomaly, irregularity or discrepancy in regard thereof

without assigning any reason whatsoever, at the sole discretion of the Bank. Any

decision in this regard shall be final, conclusive and binding on the bidder.

iv. Period of Validity of Bids

Validity Period: - Bids shall remain valid for 180 days from the last date

specified for submission of bids in this RFP. The Bank holds the rights to reject a

bid valid for a period shorter than 180 days.

Extension of Period of Validity: - In exceptional circumstances, the Bank

may solicit the Bidder’s consent to an extension of the validity period. The request

and the response thereto shall be made in writing. Extension of validity period by

the Bidder should be unconditional and irrevocable.

4. Who can submit the bid?

a. The bid shall be submitted by the System Integrator (SI) only. The term bidder

used in this RFP refers to the entity who has submitted the bid.

b. One bidder cannot submit more than one bid. In case more than one bid is

submitted by the bidder, all the bids will be rejected.

c. The bidder is responsible to carry out the entire end to end implementation of

the software solution as per the scope of work specified in this RFP.

18

d. Two SIs shall not partner with each other to bid jointly for this project.

e. The bid should clearly spell out the tasks proposed to be undertaken by the

OEM. If any of the functional/technical requirements is achieved with the

help of OEM, details of such requirements shall be mentioned in the bid and

during the product demonstration the OEM shall display his capability in

achieving the aforementioned requirements. The OEM is also required to

fulfil the eligibility criteria specified in para 13 of this RFP (except condition

no 2 and 6) and the bidder is responsible for furnishing the required details

necessary to check the eligibility of OEM. The OEM should not have

accumulated losses as on 31.03.2018.

f. One bidder in the capacity of SI can partner with multiple OEMs (for separate

modules such as credit risk, market risk, operational risk, compliance risk,

IFRS 9 and ECL calculation) to provide EWIRM Solution through this bid.

g. The Bank intends to procure Perpetual/Permanent Enterprise Licenses with

fixed AMC. The Bank should have the entitlement/ right to use these licenses

without any restriction of any nature and at all geographic locations. The

bidder should also ensure that the official & authentic license definition of

software solution is shared with Bank. The bank may use licence for its

subsidiaries in future.

h. All the new software release/version / upgrades or otherwise for any reason

should be made available to the Bank and the Bank is not liable to pay / oblige

SI or any OEM any additional charges / fees pertaining to third party royalty

charges etc. And also this should not be the reason to restrict the Bank from

upgrading to the new release / new version of the software. The same will be

provided during the entire duration of the contract.

i. The OEM should endorse the hardware & related software sizing, stating that

technically their software can be deployed on the proposed sizing. This can be

through declaration or sharing authentic / official benchmark reports.

j. The SI is responsible to carry out the process and accomplish the assigned

task.

k. The SI must not change the OEM once the bidding process is completed or at

any stage for the duration of the contract.

l. The SI cannot partner with any third party other than the OEM for the

purposes of this project.

m. A bidder to this RFP acting as the SI cannot participate in the bid submitted

by another bidder (SI) as the OEM of that bid.

19

5. Disclaimer

The information contained in this Request for Proposal (RFP) document or

information provided subsequently to bidder(s) or applicants whether verbally or

in documentary form by or on behalf of National Bank For Agriculture & Rural

Development (NABARD), is provided to the bidder(s) on the terms and conditions

set out in this RFP document and all other terms and conditions subject to which

such information is provided.

This RFP document is not an agreement and is not an offer or invitation to bid by

National Bank for Agriculture & Rural Development to any parties other than the

applicants who are qualified to submit the bids (“bidders”). The purpose of this

RFP is to provide the bidder(s) with information to assist them in formulation of

their proposals. This RFP does not claim to contain all the information each bidder

may require. Each bidder should conduct its own investigations and analysis and

should check the accuracy, reliability and completeness of the information in this

RFP and where necessary obtain independent advice. National Bank for

Agriculture & Rural Development makes no representation or warranty and shall

incur no liability under any law, statute rules or regulations as to the accuracy,

reliability or completeness of this RFP. National Bank for Agriculture & Rural

Development may in its absolute discretion, but without being under any

obligation to do so, update, amend or supplement the information in this RFP.

The term ‘Project period/duration of project/tenure of project’ used in this

RFP is of six years which includes Implementation period of 1 year and AMC/ATS

for a period of five years after GO Live.

The term ‘GO LIVE date’ used in this RFP refers the point of time of 3 weeks

post UAT sign off and movement of system to production.

The Bank’s own data is defined as the financial/non-financial information of the

National Bank for Agriculture & Rural Development which is generally used for

computation of CRAR under Basel I/Basel- II/Basel-III norms. Further it is

envisaged that as on GO-LIVE date the information residing /information required

for BASEL required approaches in CLMAS, TALMS, ENSURE etc. and any other

source system should flow seamlessly into the IRMS to generate CRAR and meet

other functional requirements specified in this RFP.

20

6. INSTRUCTION FOR BID SUBMISSION

6.1. Two Bid System Offer

6.1.1 Two offers (both Technical & Commercial) must be submitted at the same

time, giving full particulars in two separate sealed envelopes at the specified

address given above, on or before -31 August 2018 at 3.00 pm. Offers received

after the last date and time specified for such receipt will be rejected. Both the

envelopes should be securely sealed and stamped.

6.1.2 Two separate sealed envelopes containing bids must be submitted to the Bank

directly as under:

1. Technical Bid

2. Commercial Bid

6.1.3 Both the envelopes must be super-scribed with the following information:

Type of Offer (Technical or Commercial)

Tender

Reference

Number

Tender No. NB.HO.RMD/ 01 /RMD-

55/2018-19 Dated: - 23 July 2018

Name of the

RFP

“ORIGINAL: End to end software solution for

Implementation of Enterprise-wide Integrated

Risk Management Architecture in accordance

with the International Best Practices and

Guidelines of RBI on Basel I, Basel II and Basel

III.”

Due Date

Name of the

Bidder

Address of

the Bidder

Contact

details of

Bidder

6.1.4 ENVELOPE – 1: Technical Bid

The Technical Bid should be complete in all respects and contain all information

asked for, as per Annexure 1. The Technical Bid should not contain any price

information. The Technical Bid should be submitted in closed envelope to the

Bank super scribing the envelope suitably as mentioned in para 6.1.3 The Technical

Bid should be complete to indicate that all products and services asked for, are

21

quoted. For example, the Technical Bid should mention that AMC charges are

included in the Commercial Offer, without mentioning the actual amount.

EMD and Cost for RFP document should be kept inside the Technical Offer being

submitted to the Bank.

The contents of this envelope shall assist the Bank in evaluation of technical and

functional requirements of the software solution. This envelope shall contain seven

inner envelopes, each for:

Eligibility Criteria

Credit risk,

Market risk,

Operational risk and Governance Risk and Compliance (GRC)

Other functional capabilities (i.e. integration, Pillar- 2, Pillar-3 and Basel-

III)

IFRS 9 and ECL Calculation.

Technical requirements.

Envelope labelled as ‘Eligibility criteria’ shall contain the documentary proof and

annexure required if any in respect of each of the criterion listed out in Section

13. The check list for submission of eligibility criteria is given in Annexure-4. This

envelope shall without fail contain the profile of both bidder and OEM as

specified in Annexure-5

The inner envelopes shall contain the responses against each of the

functional/technical requirements under respective areas. In addition to the hard

copy of the responses the envelope shall contain a CD containing the soft copy of

responses.

The correct information of the functional capabilities of product being offered

should be reflected in the responses. Any additional information available,

though not included in the form, may also be submitted.

In addition to the seven envelopes mentioned above this envelope shall also

contain an eighth inner envelope. This eighth envelope shall contain contents of

technical bid as specified below:

Implementation methodology as given in Annexure-6

Reference site details in the format specified in Annexure-7

Details of past experience as specified in the Annexure-8

The proposed project team profile as given in Annexure-9

The details of training programs conducted by the bidder in format specified

in Annexure-10.The documentary proof in support of these programmes in

the customer-Bank’s letter head shall also be included in this envelope.

All other necessary Annexures specified in this RFP along with documentary

proof required for substantiating the information given in Annexure, if any. In

22

addition to the annexures specifically listed out in this RFP this envelope shall

also include:

* Technology, architecture of proposed solution, exact tools to be used

* List of all software / tools to be used together with licensing details

* Tentative project time schedule and plan

* Project management, control and tracking mechanism

* Quality control setup and procedures to be followed

* Implementation & Training plan

* Technical brochures and user manual

Any other relevant information

6.1.5 ENVELOPE-2: Commercial Bid

The Commercial Bid should give all relevant price information and should not

contradict the Technical Bid in any manner. The Commercial Bid should be

submitted to the Bank in a closed envelope (marked as Commercial Bid) super

scribing the envelope suitably as mentioned in para 6.1.3.

The commercial bid should be given by the bidder in the format as shown in

Annexure -12. The Bidder is expected to quote unit price in Indian Rupees (without

decimal places) for all components and services inclusive of all costs and applicable

taxes like customs duty, excise duty, import taxes, freight, forwarding, insurance,

delivery, installation, training etc. at the respective delivery location of the Bank

except Goods and Service Tax (GST) GST will be paid as per actuals (necessary

documentary proof).

The price should be quoted for each item, each unit with total cost, module wise, if

modular. Prices for all items including optional items, if any, should also be

mentioned. AMC for each item year wise should be provided. The envelope labelled

as commercial bid should include the following:

The bid covering letter cum declaration format is given in Annexure-11

Details of cost of deliverables for each risk management system (also include

cost of integrated solution with all modules.) in the format given in

Annexure-12

Technical and Commercial Bids must be submitted separately in different closed

envelopes. It may be noted that if any envelope is found to contain both technical

and commercial offers, such offer will be summarily rejected. Both the bids shall

be submitted in one closed envelope super scribing the envelope as mentioned in

para 6.13.

23

6.1.6 Soft Copy of the Bid

Soft copy of both, the Technical Bid as well as the Commercial Bid, in CD should

be provided with each Bid. Prices should be masked while copying the commercial

offer in the CD.

i. Each page of the technical as well as commercial bid and any supplementary

document attached, if any, should have the signature and the seal of an authorized person (having the authorization / power of attorney etc. to sign on behalf of the organization). The authorization should be given in the format given in Annexure-2.

ii. The bid shall be typed or written in indelible ink and shall be signed by the Bidder or a person duly authorized to bind the bidder to the contract. The authorization shall be indicated by written power of attorney accompanying the bid. All pages of the bid except un-amended printed literature shall be initialed by the person or persons signing the Bid.

iii. The bid shall contain no interlineations, erasures or over writing except as necessary to correct errors made by the bidder, in which case such corrections shall be initialed by the person or persons signing the bid.

iv. The bidder should quote the price for each item required by the Bank. The format for the same has been given in Annexure-12. Besides the system software, the license cost for the ERMS software and the AMC cost for the period of the project, should be indicated separately item-wise in the commercial bid as indicated in Annexure-12.

v. Any enterprise software would need to undergo modifications, over and above the BRD, to fulfill the business requirements and this would necessitate additional customization of the software. The software vendor should, therefore, provision for such “Additional Customization” by estimating a certain number of man-days, say 1000 man-days, over a period of 5 years, in the commercial bid and also indicate the per man day cost to arrive at the “Additional Customization Cost” in the Commercial Bid.

vi. A signed copy of the RFP must be submitted along with the bid before the aforementioned closing date and time as mentioned in Tender Notice section.

vii. Any bid received by the Bank after the deadline for submission of bid prescribed by the Bank, will be rejected and/or returned unopened to the bidder, if bidder desires so.

viii. Faxed/Emailed copies of any submission are not acceptable and will be rejected by the Bank.

ix. If the submission does not include all the required information and documents or is incomplete, the proposal is liable to be rejected.

x. All submissions, including any accompanying documents, will become the property of the Bank. Bidders shall be deemed to license, and grant all rights to the Bank to reproduce the whole or any portion of their submission for the purpose of evaluation, to disclose the contents of the submission to other bidders and to disclose and/or use the contents of the submission as the basis for processing of RFP, notwithstanding any copyright or other intellectual property right that may subsist in the submission or accompanying documents.

xi. At any time prior to the deadline for submission of bids, the Bank, for any reason, whether at its own initiative or in response to a clarification requested by a prospective bidder, modify the Bidding documents by amendments.

24

xii. Amendment will be notified through NABARD’s website to all prospective Bidders and will be binding on them. In order to provide, prospective Bidders, reasonable time to take the amendment into account in preparing their bid the Bank may, at its discretion, extend the dead line for submission of bids.

xiii. The proposal must remain valid and open for evaluation for a period of at least 180 days from the last date of submission (or extended last date of submission) of RFP.

25

7. Background:

a) About NABARD

National Bank for Agriculture and Rural Development (hereafter referred to as the

Bank or NABARD) is the Apex Bank for Agriculture and Rural Development,

established in terms of the NABARD Act, 1981. It commenced its operations on 12

July, 1982. The Mission of NABARD is to “Promote sustainable and equitable

agriculture and rural development through participative financial and non-

financial interventions, innovations, technology and institutional development for

securing prosperity.”

The details of financials of NABARD & its subsidiaries is available on the website

of NABARD i.e. www.nabard.org and websites of its various subsidiaries

i. Management Structure

As on 3o April 2018, the Bank had a staff strength of approximately, 3968,

comprising officers, assistants and sub staff.

ii. Organisational Structure

The Bank functions as an all India organisation having offices at various places in

the country. At present, the Bank is having its Head Office (HO) at Mumbai has its

offices, training establishments and other offices at various locations.

In addition, there are District Development Offices in 611 districts across the

country. There are 3 Project Management Units for managing specific projects/

programmes. Details of the DDM Offices and PMUs are available on the Bank’s

website, www.nabard.org.

Functionally, the different work areas of the Bank are handled by different Head

Office Departments of the Bank, independently or in collaboration with the

corresponding set up at Regional Offices of the Bank. At present, the Head Office

has the following Departments:

Sl.No. Name of Department

1 Accounts Department

2 Business Initiatives Department

3 Central Vigilance Cell

4 Corporate Planning Department

5 Corporate Communications Department

6 Department of Economic Analysis & Research

7 Department of Financial Inclusion & Banking Technology

8 Department of Information Technology

9 Department of Premises, Security & Procurement

http://www.nabard.org/

26

10 Department of Refinance

11 Department of Storage & Marketing

12 Department of Subsidiaries & Strategic Investments

13 Department of Supervision

14 Farm Sector Development Department

15 Farm Sector Policy Department

16 Finance Department

17 Human Resources Management Department

18 Inspection Department

19 Institutional Development Department

20 Law Department

21 Micro Credit & Innovations Department

22 Off Farm Development Department

23 Rajbhasha Prabhag

24 Risk Management Department

25 Secretary's Department

26 State Projects Department

The Departments set up at the Regional Offices largely correspond to the Head

Office Departments.

Further, NABARD promotes four subsidiaries as on 31st March 2018, i.e. NABARD

Consultancy Services (Nabcons), NABKISAN Finance Limited (NKFL),

NABSAMRUDDHI Finance Limited and NABARD Financial Services Private

Limited (NABFINS). The overview of the three subsidiaries that are notified as

Non-Banking Finance Company (NBFC) by RBI are mentioned below:

I. NABKISAN Finance Limited:

NABKISAN Finance Limited (NKFL) is a subsidiary of National Bank for

Agriculture and Rural Development (NABARD) with equity participation from

NABARD, Govt. of Tamilnadu, Indian Bank, Indian Overseas Bank, Tamilnad

Mercantile Bank, Canara Bank, ICICI Bank, Federal Bank, Lakshmi Vilas Bank and

a few Corporates / Individuals. The main objective of the company is to provide

credit for promotion, expansion and commercialization of enterprises engaged in

agriculture, allied and rural non-farm activities. The NABKISAN Finance limited

presently operates in 11 states.

II. NABSAMRUDDHI Finance Limited:

NABSAMRUDDHI Finance Limited is promoted with equity participation from

National Bank for Agriculture and Rural Development (NABARD), Andhra Bank,

Canara Bank, Government of Andhra Pradesh, Government of Telangana, Andhra

Pradesh State Cooperative Bank, Telangana State Cooperative Apex Bank and a few

Industrial Houses / individuals from the State. The company is notified as a Non-

Banking Finance Company (NBFC) by RBI. The objective of NABSAMRUDDHI is

27

to provide credit facilities to individuals and legal entities for promotion,

expansion, commercialization and modernization of enterprises and individuals

engaged in non-farm activities including microfinance, MSME, housing,

education, transport, etc.

III. NABARD Financial Services Limited:

NABARD Financial Services Limited (NABFINS) is a subsidiary of National Bank

for Agriculture and Rural Development (NABARD) with equity participation from

NABARD, Government of Karnataka, Canara Bank, and Union Bank of India, Bank

of Baroda, Dhanalakshmi Bank and Federal Bank. It is a non-deposit taking NBFC

registered with the Reserve Bank of India and shall operate throughout India. The

main objectives of the Company are to provide financial services in two broad areas

of agriculture and microfinance. NABFINS provides credit and other facilities for

promotion, expansion, commercialization and modernization of agriculture and

allied activities.

iii. Key functions of NABARD

i. Providing refinance to approved financial institutions for lending to

ultimate borrowers for approved purposes – both in farm and off-farm

sectors

ii. Providing loans to state government for developing critical rural

infrastructure including social infrastructure and strengthening cooperative

credit institutions

iii. Providing promotional support for farm and non-farm activities like

watershed development, tribal development, natural resources

management, entrepreneurship development, skill upgradation of rural

artisans and rural women, technology development for financial inclusion,

micro credit innovations of NGOs and other formal and informal agencies.

iv. Monitoring and evaluation of projects financed

v. Supervision of RRBs and StCBs

b) Risk Management Set-up in NABARD

NABARD has established a full-fledged department to take care of risk related

aspects in NABARD. The Integrated Enterprise Risk Management Policy covering

credit risk, market risk, operational risk and compliance risk has been put in place

since July 2015. Risk Management set-up right from the Board of Directors to

Regional Offices has been established and is functional. NABARD has been

managing Risk through various Departments at Regional and Head office levels

while doing business. A brief introduction of the same is given below.

28

i. Credit Risk

NABARD has been in refinance business since inception and has ventured

into direct lending also. Credit risk covers appraisal risk, ( borrower risk,

project risk, technical and feasibility risk, security risk, documentation

(Legal) risk), monitoring risk etc. Default forecasting system and rating

modules are used in the Business Departments.

ii. Market Risk

Investments are made in G-Sec, bonds, mutual funds and other approved

securities as there is a need to mitigate the market risk. The investments are

divided into HFT, AFS and HTM category and also mark to market concept

is being followed as per regulatory guidelines. As risk mitigation measures,

duration, modified duration, PV01, VaR and stress testing concepts are

adopted.

iii. Liquidity and Interest Rate Risk

NABARD has been funding its operations both through long-term and

short-term borrowings and therefore has to address liquidity risk and

interest rate risk. ALCO meetings are convened on a monthly basis to review

on the liquidity gaps and interest rate movements and to manage the assets

and liabilities as per the ALM policy of NABARD besides deciding on

interest rates for refinance products. In order to strengthen the Asset

Liability Management and also to have the data generated from the system,

Treasury and Asset Liability Management Solution (TALMS) package

implementation is under way.

iv. Operational Risk

NABARD has operations through District Offices, Regional offices and HO

Departments. Being a development bank, it has to deal with various

Government departments, banks, NGOs etc. The implementation of six

software solutions, i.e., Enterprise Content Management Solution,

ENSURE, Centralised Loan Management and Accounting System (CLMAS)

and Treasury and Asset Liability Management System (TALMS) (which

includes sub-modules such as Treasury Module & Asset Liability

Management Module) and Resource Mobilization Unit (RMU) System is

underway and a Human Resources Management Solution is functional.

These systems/solutions have a bearing on IT related systemic risks.

v. Compliance Risk

Various statutory provisions and regulatory guidelines as applicable to

NABARD have to be complied with. The Chief General Manager (CGM) of

29

Risk Management Department is the Chief Compliance Officer of NABARD

with CGMs / OICs of HO Departments and Regional Offices acting as

Compliance Officers.

30

8. Scope of Work

To achieve the Bank’s objective to manage and evaluate the credit, market, operational

and compliance risks better, the Bank has been in the process of enhancing its risk

management practices and believes that such practices with the strategic aim of

migration to advanced approach would help achieve long term benefits.

In order to achieve the Bank’s objectives, it intends to implement a robust and highly

scalable ‘Integrated Risk Management Solution’ (IRMS) with the required

infrastructure (software and hardware) to support all the business, technical and

functional requirements related to enterprise-wide risk management.

The ‘Integrated Risk Management Solution’ (IRMS) should be a single integrated

business solution, covering all the mentioned functionality (detailed in the RfP) and

flexibility required to carry out the enterprise-wide risk management activities in the

current and foreseeable future. It should support multiple organizational entities,

locations as well as multiple regulatory jurisdictions.

a) Objective of RFP

The Bank has decided to float this RFP to achieve the following objective:

To invite techno-commercial bids from corporate body/ Public or Private

Ltd company/Public sector undertaking/ Partnership Firm/LLP, for

undertaking the scope of work as outlined in Section 8 of this document.

To appoint a competent party through an sealed tendering process for

laying down an Enterprise-wide Integrated Risk Management

Architecture (EWIRM) in accordance with the International Best

Practices and Guidelines of RBI on Basel I, Basel II and Basel III. The

EWIRM shall exhaustively accomplish the scope of work detailed in this

RFP.

b) Objective of the Project

The Bank wishes to appoint competent party for laying down an Enterprise-wide

Integrated Risk Management Architecture (EWIRM) in accordance with the

International Best Practices and Guidelines of RBI on Basel I, Basel II, Basel III by way

of implementing ‘Integrated Risk Management Solution’ (IRMS) with the required

infrastructure (software and hardware) to support all the business, technical and

functional requirements related to enterprise-wide risk management.

Presently NABARD is governed by BASEL-I regulatory requirements. However, it looks

forward to meeting the BASEL-III norms (as per RBI communication to AIFIs

regarding Review of Regulatory Framework for the AIFIs dated November 28, 2016-

Annexure- 18).

The overall objective of the assignment is to assist the Bank for a smooth migration to

the desired future goal as set out in the preceding paras by ensuring that a

31

comprehensive risk management system is put in place for identification, assessment,

monitoring and reporting of enterprise architecture level risks of the organisation.

c) Responsibilities of Bidder

1. The successful bidder should conduct System Requirement Study (SRS)

covering the risk, quality, migration, conversion, cutover, resource, change and

communication management plan after understanding the requirements from

the Bank team for the implementation of the solution and submit the SRS within

15 days from date of acceptance of the Purchase Order.

2. Once the SRS is signed off from the Bank side, the bidder has to submit a

detailed project plan for migration, customization, testing and implementation

of the software. Plan should include the full scope of the project as defined in

the scope of the work. This process should be completed within 15 days from

the date of sign off of SRS. On acceptance of such plan by the Bank, the bidder

is required to carry out the implementation along with migration and

customization as applicable including installation, testing of solution etc.

3. On awarding the contract, the bidder should gain understanding of the

functioning of the existing system from core users of the Bank. He shall prepare

a Business Requirement Document (BRD) based on the gap analysis and

other requirements of the RFP within 45 days from the date of acceptance of

Purchase Order. The bidder shall undertake to obtain Bank’s approval of the

Business requirement documentation (over and above Functional

Requirements Specifications and System requirement Specifications) and

associated project plans before software customization work commences. The

document should provide the plan in detail based on the criticality of the

requirements. The bidder shall allow adequate time for review of the above

documents by the Bank.

4. The bidder shall Implement an EWIRM solution which is capable of:

a. Supporting estimation of all risk components and capital

calculations (regulatory & economic) as per the guidelines issued by

RBI and Basel under BASEL I and the Standardized and advanced

approaches of Basel II & III norms.

b. Meeting the Pillar I, II, III and stress testing requirements as per RBI

regulations applicable on AIFI and Basel guidelines on Basel II and

Basel III.

c. Supporting all the required statistical, analytical, risk modelling,

pricing and reporting requirements as per Bank’s internal

requirements.

d. Performing back testing and stress testing.

e. IFRS 9 and ECL calculation

f. Any other task as per the scope of work mentioned in the RFP.

5. The bidder should review and improve the architecture for optimal utilization

of the hardware and submit a report in this regard to Bank.

32

6. The bidder is required to configure and maintain DR for the whole application.

The bidder is required to replicate all the configuration changes to DR with

respect to webserver and other configurations and replicate the database.

7. Set up, installation and testing of the required software in the hardware

provided by the Bank including its data centres at BKC, Mumbai and Disaster

Recovery Site at Faridabad.

8. The bidder is required to integrate the proposed solution with the Bank’s Core

Banking System and other systems for all the existing activities.

9. The bidder is required to Implement the solution in all Head Office

departments, all Regional Offices and Training Establishments of the Bank.

10. The bidder should provide auditing feature of the application/solution to keep

track of the activities performed by the system & application administrators.

11. Security audit of the application will be carried out by the Banks internal

& External auditors and the observations/recommendations made by the

auditors need to be complied within the time limit as advised by the Bank,

without any additional cost to the Bank.

12. The Application Security Testing, Vulnerability Assessment & Penetration

Testing (VAPT), Application deployment architecture assessment will be

carried out by Independent Security Audit team (nominated by the Bank) and

the bidder has to implement all the security recommendations of the Audit

findings. OS and Patches as and when released are to be tested in the Test

Environment and thereafter it shall be applied in the Production Environment

at DC and DR.

13. The application developed or customized should follow a standard

development process to ensure that it meets functional, security,

performance & regulatory requirements of the Bank. The bidder should

comply with Banks Information Security policy in key concern areas relevant

to the RFP. Some of the key areas are as under:-

Responsibilities for data and application privacy and confidentiality.

Password Policy of the Bank

Responsibilities on system and software access control and

administration.

14. Ensure that the system is in compliance with RBI requirements for Basel I and

all approaches under Basel II and Basel III and other relevant regulatory

guidelines. Any instances of noncompliance observed will need to be rectified at

no additional cost and well within timelines stipulated by the regulator/bank.

15. Ensure that software solution being supplied should be capable to get integrated

with a Data Ware housing solution; the Bank may go for in future. It needs to

have standard interfacing capabilities.

16. Identify Project Manager, Project Leaders and members of the development

teams with relevant skills. The bidder should identify minimum 1 Project

Manager, 2 application experts, and 2 experts for ETL and data, etc. to be

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stationed within the premises of the Bank. The bidder will intimate the Bank if

there is any change in the project team. The bidder will ensure proper back up

of project leaders and manager and the plan should be intimated to the Bank.

The minimum experience of the project team personnel like Project Leader and

Programmers put on work preferably should be 3 to 5 years. Project Manager

should have 5 to 8 years’ experience in implementation of BASEL II/III. Systems

study and all development activities will have to be undertaken at the Bank’s

locations acceptable to Bank.

17. Provide a resource for a period of 6 months to input/ upload the Bank’s data

including the data uploading from the physical records.

18. Ensure that the solution offered should have all components mentioned clearly

with its license requirements

19. Impart training on EWIRM solution to designated personnel of the Bank and

handling the system and trainers.

20. Incorporate changes in system arising on impact of amendment to regulations/

Bank’s policy at no additional cost and well within timelines stipulated by the

regulator.

21. Assist the Bank in conducting the User Acceptance tests by providing test plans,

scenarios and resolving gaps.

22. Provide complete module wise documentation including logic used, empirical

analysis done, methodology etc. as per regulatory and audit requirements.

23. Provide all statutory, regulatory Management Information System (MIS), adhoc

MIS (including development if needed) and Executive Information System (EIS)

reports as required by the Bank in the desired format as per regulatory and

Bank’s requirements.

24. Ensure that the system meets all functional and technical requirements

specified in this RFP.

25. In case the product/ solution/ vendor/ OEM/SI are amalgamated/ dissolved the

impact of such an event should not have any adverse implication on the service

level/ time line/cost that is proposed for implementation of the solution. Such

event would not dilute the responsibility of the successful bidder in completing

the implementation within mutually agreed time lines. Cost escalation, if any,

has to be borne by the bidder only.

26. The bidder shall provide the cost as per the format given in Annexure-12. The

bidder shall provide the specifications of the hardware as per the format given

in Annexure 35.

27. Bidder should install & configure various components of the complete solution.

The bidder shall interface the proposed solution with external systems in the

Bank including Bloomberg, Reuters, FIMMDA, AMFI for Market Risk, External

Rating agencies and RBI Statistics, handbook on Indian Economy for Credit

Risk, IBA for Operational Risk or any other system prescribed by the Regulator

or proposed to be used by the Bank in future.

28. Bidder should implement & maintain the application software in Main Data

centre and Disaster Recovery (DR) sites.

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29. Bidder should provide Modular wise user manual as well as Administrator’s

manual, post implementation on-site support for 6 months from GO LIVE date

and further support till the end of agreed AMC period.

30. Data migration should be done by the bidder from the existing data (available in

various source systems, physical files, through workaround) to the new system

with consistency. After going LIVE the incremental data shall be moved onto the

Risk Management solutions as per the current RTO and RPO specified in the

BCM policy of the bank, bidder to provide necessary interface or tools for the

same.

31. Reports for the migration of data as required by the Bank have to be developed

and generated during the migration with all required controls, balances and

checks for the proper migration.

32. The successful bidder shall provide technical support for the software

application systems supplied under this contract, and will have overall

responsibility of the performance, functionality and operation of the systems

under this contract. Any supporting software provided/installed/configured by

the bidder shall be maintained /fine-tuned/parameterized by the bidder, time

to time, so that the solution delivers optimal performance.

33. Security features should meet the standards and procedures as per Bank’s Cyber

Security Policy and Information Security Policy and procedures should be

followed, in line with prevailing Industrial Standards.

34. The bidder to provide the Bank with the proper backup and recovery procedure

as per the BCM policy of the bank, with necessary documents so as to meet any

exigencies.

35. The bidder should ensure that all verification processes in the software solutions

should be governed by maker checker controls.

36. The bidder’s overall responsibility includes offering suitable software related

framework like BRD/SRS, supporting software solution, install the software in

the hardware provided by the bank, impart necessary training and supply the

required documentations/manual.

37. The bidder shall be also responsible for the following:

a. Managing the activities of its personnel and personnel from OEM and will

hold itself responsible for any misdemeanours.

b. The Supplier's representative or the local office nearest to Mumbai shall

be the contact point for the Bank and all the authentic status of Delivery

and Installation should be made available in writing.

c. Keep the Bank informed on the progress of the project as per the agreed

reporting schedules.

d. The bidder will prepare acceptance test plan in consultation with the

Bank, for which bidder will station its officers in the Bank at no additional

cost.

e. Incorporate the review comments received from the users.

f. Prepare contingency plans.

g. Customize software.

h. Incorporate change management as per mutual ag