Download - Canara Bank

of 80

( A Scheduled Bank established by Govt. of India)

(CANARA BANK SPONSORED RRB)

Head Office:Bellary (Karnataka)

__________________________________________________________________________

REQUEST FOR PROPOSAL (RFP)

FOR

IMPLEMENTATION

OF

FINANCIAL INCLUSION SOLUTION

IN

PRAGATHI GRAMIN BANK

RFP REFERENCE No:

PGB/FI-RFP/01/2010-11 DATED: 05.01.2011

FINANCIAL INCLUSION DIVISION

Head Office, 32, Sanganakal Road, Gandhinagar, Bellary -583103

Telephone No 08392- 256674 , 257250

e-mail pgb.development @ gmail.com

RFP– FINANCIAL INCLUSION SOLUTION

PGB/FI-RFP/01/2010-11 of 80

SCHEDULE

Bid Reference PGB/FI-RFP/01/2010-11 dated 05.01.2011

Purpose Request for Proposal for an end-to-end solution for

Pragathi Gramin Bank Financial Inclusion Project

involving Supply, Customization, Installation,

Operations, Maintenance of required Hardware &

Software, Facility Management in addition to Delivery

& Support for Financial Services

Pre-Bid Meeting On 19.01.2011 (Wednesday) at 2.00 PM at Canara

Bank, DIT Wing, Naveen Complex, II Floor, 14 M G

Road Bangalore-560001

Last Date for submission of

queries

14.01.2011 (Friday)

Non-refundable Cost of Bid

to be paid while submitting

the Bid Documents.

Rs 10,000/- by way of Demand Draft or Pay Order

payable to Pragathi Gramin Bank payable at Bellary

Bid Guarantee to be

submitted along with Bid

Documents

Rs 5,00,000/- by way of Bank Guarantee for 6 months

issued by a Public Sector Bank

Last Date for Submission of

Bids

27.01.2011 (Thursday) before 1.00 PM

Address for submission of

Bid

Canara Bank, DIT Wing, Naveen Complex, I Floor, 14

M G Road Bangalore-560001

Date of Opening Technical

Bids *

27.01.2011 (Thursday) at 3.30 PM

Venue :Canara Bank, DIT Wing, II Floor, Naveen

Complex, 14 M G Road Bangalore-560001

Contact Numbers 08392-257250, 256674 (HO Bellary)

Fax Number 08392-256886 (HO Bellary)

e-mail address [email protected]

* Technical/Commercial bids will be opened in the presence of the authorised representative of the

Bidders (authorization letter from Company to be submitted). Only one representative will be

allowed to represent the Company.

Bank may change the dates of above events duly notifying in its website www.pgbankho.in.only

mailto:[email protected]


PGB/FI-RFP/01/2010-11 of 80

CONTENTS

Sl

No.

DETAILS PAGE

NO.

1 INTRODUCTION 5 2 ABOUT THE RFP 7

3 PRESENT STATUS 8 4 FINANCIAL INCLUSION PLANNED BY THE BANK 9

5 PRE QUALIFICATION CRITERIA FOR BIDDER 10 6 ELIGIBLITY CRITERIA 11

7 CONSORTIUM 12

8 SCOPE OF WORK 13 8.1 OPEX MODEL 13

8.31 CASH MANAGEMENT BY THE BIDDER 16 8.35 MANANAGEMENT INFORMATION SYSTEM (MIS) 18

9 SERVICES & FACILITIES – FI SOLUTION 18

9.1 BASIC BANKING PRODUCTS & SERVICES 18 9.2 COMPLIANCE REQUIREMENT 19

9.3 THIRD PARTY RISK & MITIGATION BY THE BIDDER 20 10 TECHNICAL REQUIREMENT & SPECIFICATION 21

11 BUSINESS CORRESPONDENTS – SCOPE & OTHER

CONDITIONS 24

11.1 BCs ENGAGED BY THE BIDDER - MODEL A 24

11.2 BCs ENGAGED BYTHE BANK- MODEL B 24 11.3 SCOPE OF BCs 24

11.4 DUTIES & RESPONSIBILITIES OF BCs 26 12 BANK GURANTEE TOWARDS CASH HANDLING BY BCs 28

12.2 PERFORMANCE GUARANTEE 28 13 PILOT IMPLEMENTATION 28

14 TERMS OF PAYMENT 29

15 PENALTY CLAUSE 29 16 UP-TIME 30

17 TIME SCHEDULE 30 18 BIDDERS RESPONSE & OPENING OF BID 31

18.1 GENERAL TERMS OF BID SUBMISSION 31 18.2 PREPERATION OF BIDS 32

18.3 CONTACT DETAILS FOR SUBMITTING THE PROPOSAL 33

18.4 PROPOSAL FORMAT DETAILS 34 18.5 TECHNICAL BID 34

18.6 CLARIFICATION TO RFP & PRE-BID MEETING 35 18.7 COMMERCIAL BID 35

18.8 ORGANIZATION OF BID 37

18.9 OPENING OF THE BIDS 37 18.10 EXAMINATION OF THE BID 38

18.11 EVALUATION METHODOLOGY 38 18.12 OPENING OF COMMERCIAL BID & EVALUATION 40


PGB/FI-RFP/01/2010-11 of 80

18.14 AWARDING OF CONTRACT 42

19 OTHER TERMS OF CONDITIONS 43

19.1 TERMS & CONDITIONS OF THE PROPOSAL 43 19.2 RIGHT TO ALTER QUANTITIES BY THE BANK 46

19.4 REPRESENTATION & WARRANTIES 47 19.5 COMPLIANCE WITH LAWS 48

19.6 RIGHT TO CANCELLATION OF ORDERS BY THE BANK 49

19.7 INDEMNITY CLAUSE 49 19.8 INSPECTION OF RECORDS 50

19.9 ALERT ON CORRUPTION & FRADULENT PRACTICES 50 19.11 CONFIDENTIALITY & NON-DISCLOSURE 51

19.12 FORCE MAJEURE 52 19.13 ARBITRATION 52

19.14 JURISDICTION 52

19.15 TERMINATION OF CONTRACT 52

Sl

No.

ANNEXURES PAGE

NO.

1 TECHNICAL BID FORM Annexure- I 54

2 TECHNICAL BID FORM Annexure- II 56

3 TECHNICAL BID FORM Annexure- III 57

4 TECHNICAL BID FORM Annexure- IV 58

5 TECHNICAL BID FORM Annexure- V 59

6 TECHNICAL BID FORM Annexure- VI 60

7 TECHNICAL COMPLIANCE STATEMENT CHECK LIST

FORM Annexure - VII

61

8 TECHNICAL BID FORM Annexure –VIII 64

9 TECHNICAL BID FORM Annexure –IX 68

10 TECHNICAL BID FORM Annexure –X 69

11 TECHNICAL BID FORM Annexure - XI 70

12 COMMERCIAL BID COVERING LETTER Annexure -XII 71

13 COMMERCIAL BID FORM MODEL-A Annexure-XIII 72

14 COMMERCIAL BID FORM MODEL-B Annexure-XIV 74

15 AUTHORIZATION LETTER FORMAT Annexure- XV 76

16 BANK GUARANTEE FORMAT FOR BID Annexure- XVI 77

17 NON DISCLOSURE AGREEMENT FORMAT Annexure- XVII 78

18 PRE BID QUERY FORMAT Annexure- XVIII 79

19 BIDDER UNDERTAKING TECHNICAL EVALUATION Annexure - XIX

80


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INVITATION TO BID

1. INTRODUCTION

Pragathi Gramin Bank, a Body Corporate constituted by Government of India under the

provisions of Regional Rural Banks Act, 1976 is a premier RRB with its origin of inception

in the year 1976. The Bank‟s Head Office is at 32, Sanganakal Road,

Gandhinagar, Bellary (Karnataka State) and having a network of 365 Branches operating in 8

districts of Karnataka State. The Bank is catering to various banking products, herein after

called “Bank”, which term or expression unless excluded by or repugnant to the context or

the meaning thereof, shall be deemed to include its successors and permitted assigns, issues

this Request For Proposal, hereinafter called “RFP”, invite proposals from eligible bidders

for providing end-to-end solution on per transaction basis for smart card based Financial

Inclusion. Bank, desires to implement Financial Inclusion through multiple bidders in

identified villages as per specifications, terms and conditions and scope of this RFP.

Pragathi Gramin Bank is one of the 82 Regional Rural Banks (RRB) operating across length

and breadth of the Country. The Bank is sponsored by CANARA BANK, one of the premier

Nationalized Banks.

RRBs are the Body Corporate constituted by Government of India under the provisions of

Regional Rural Banks Act, 1976 enacted by the Parliament. RRBs are the scheduled Banks,

notified by Reserve Bank of India.

Ownership pattern of RRBs:

The ownership pattern of the RRBs is as under:

Particulars Government

of India Canara Bank

Government of

Karnataka Total

%AGE OF HOLDING 50 35 15 100

Although RRBs are mainly focusing their services to rural areas, they are well equipped to

cater to the banking needs of all cross section of the society viz. business, services and

industries etc.

Pragathi Gramin Bank is the largest Regional Rural Bank in Southern India in terms of total

business as at 31.03.2010. All its Branches will be on Core Banking Solutions shortly. The

selection of System Integrator has just been completed and further steps in this regard are

initiated. At present out of 365 Branches 184 branches are on ALPM network and remaining

181 branches are on LAN. The Bank‟s command area includes 8 Districts viz., Bellary,

Chitradurga, Chikkaballapur, Davanagere, Kolar, Koppal, Raichur and Shimoga, of

Karnataka State.


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The Bank is the major market leader among all Banks in 8 Districts and has been showing

all-round progress every year.

Business Growth [Rs. in Cr.]

Year/

Month

Agg.

Deposits

Advances

O/s

Total

business

Net Profit

*12.09.05 1326.49 1374.05 2700.54 --

Mar. 06 1642.94 1614.49 3257.43 23.69

Mar. 07 2006.19 2025.29 4031.48 55.21

Mar. 08 2548.63 2400.00 4948.63 47.77

Mar. 09 3222.32 2986.66 6208.98 35.98

Mar. 10 4122.46 3878.93 8001.39 54.95

* The four RRBs sponsored by Canara Bank in Karnataka State were amalgamated on 12.09.2010,

in terms of the measures iniiated by Govt., of India to strengthen Regional Rural Banks

operating in the Country.

1.1 There are around 8500 villages in the command area of the Bank, out of which around 4500

villages are served by the Bank through its 365 Branches. 278 Branches are located in

villages, some of which are serving in the remote regions of the command area. Bank has

largest share in the rural net work of Branches, among all Banks in the 8 Districts.

The working of the Branches is monitored by seven Regional Offices (ROs) in the command

area. The distribution of Bank‟s Branch network among the ROs is as follows.

1.2 Region wise clientele base and business position as at September 30, 2010 is as follows.

(Amount Rs in Crore)

SL

No

Regional Offices &

Branches Rural+Semi

-

urban+urba

n Brs.

Deposits Loans outstanding Total Business

No. A/cs Amt

No. of A/cs

Amt No. of A/cs Amt

01 Bellary (68) 48+09+11 541091 1180 92330 846 633421 2026

02 Raichur (53) 33+14+06 473409 551 87358 1049 560767 1600

03 Koppal (42) 33+08+01 373804 450 55956 424 429760 874

04 Davanagere (44) 37+05+02 305734 376 64723 432 370457 808

05 Kolar (65) 50+13+02 471558 723 87744 534 559302 1257

06 Chitradurga (65) 58+05+02 406601 536 95667 546 502268 1082

07 Shimoga (28) 19+05+04 154842 279 26710 172 181552 451

TOTAL

365 22727039

4095

510488 4003 3237527 8098


PGB/FI-RFP/01/2010-11 of 80

2 ABOUT THE RFP

2.1 The Bank intends to extend banking and financial services to the under banked and un-

banked area of its operational area through its program of Financial Inclusion. In the context

of Financial Inclusion the Bank envisages extension of Banking & Financial Services to

under-banked & un-banked areas through Smart-Card based technology to provide

“branchless banking” and deliver financial and banking services in identified

centers/villages.

2.2 The financial and banking services are aimed at to cover mainly No frills account holders. As

at September 2010 bank had more than 5.60 lakhs No frills accounts belonging to weaker

section households. During the financial year 2010-11 & 2011-12 the bank has planned to

cover around 3 lakhs households under the plan. Over a period of 5 years it is likely that the

total number of households to be covered under FI may cross 5 lakhs. The coverage includes

the existing accounts already opened and new accounts to be opened in the next five years

period.

2.3 The bank intends to use Smart Card based technology for enrolment and servicing of these

customers. Banking products such as No frills saving bank account, over draft, micro credit,

micro fixed deposit, recurring deposit, micro insurance, micro fund and such other products

like KCC, GCC, Term Loans etc., as decided by the Bank from time to time, shall be

provided through smart cards based solution to the customers at their door steps.

2.4 The technology architecture supporting this strategy involves a combination of various

technology like smart card technology, mobile-phone based technologies, RFID, contact /

contact-less cards, biometric identification and authentication, etc. These technologies

(herein after called ICT based financial inclusion technologies) shall support online and

offline transactions and operations as explained here below in subsequent paragraphs.

2.5 The Request for Proposal is issued for inviting proposals (sealed Technical and Commercial

Bids) from Service Providers.

2.6 A Service Provider together with their Consortium members submitting the proposal in

response to this RFP shall herein after be called “Bidder” or “Technology Service Provider

(TSP) or “Consortium” inter changeably, which term may be understood based on the

appropriate context.

2.7 The human resources and infrastructure (facility, hardware, software, application, network,

and security systems) required for end-to-end solution would belong to, be maintained,

managed and operated by the Bidder and their consortium members.

2.8 The RFP document is neither an offer letter nor a legal contract, but an invitation for

offers/responses. No contractual obligation on behalf of Pragathi Gramin Bank whatsoever

shall arise from the RFP process unless and until a formal contract is signed and executed

by duly authorized officers of Pragathi Gramin Bank and the bidder.


PGB/FI-RFP/01/2010-11 of 80

2.9 The Bank has no obligation to accept any or the lowest quote. The Bank reserves the right

to cancel the RFP at any point of time.

2.10 All offers of the bidders shall be unconditional and once accepted whether with or without

modifications by the Bank shall be binding between the Bank and such Bidder.

2.11 However, this is a binding document between Bank and respondents till the completion of

selection process and notification of award and till a contract is signed between Bank and

the Bidder in the process in case both parties initiate and expedite certain actions pending

the execution of a contract.

2.12 The Bank may modify any/all of the terms of this RFP and shall be entitled to award the

contract to a selected bidder with / without modification of any conditions contained

herein.

2.13 This RFP document is structured in such a way that the Bidders fully understand and

acquaint themselves with the requirements of the Bank. Bank is not responsible for any

assumption made by the bidder.

3 PRESENT STATUS

3.1 The Banking System in Karnataka State and Government of Karnataka are implementing a

pilot project for payment of MGREGP and Social Security Pension through Smart Card

technology synchronized with Business Correspondent model. The project is guided by

Reserve Bank of India and is coordinated by the State Level Bankers‟ Committee (SLBC).

3.2 Our Bank is participating in the implementation of the above said pilot project through its

133 Branches of Bellary and Chitradurga Districts. The project is operating since December,

2008. The scope of the above project has been enhanced to provide banking schemes/services

to all the un-reached villages in the above two districts by taking up an exclusive financial

plan assisted by NABARD.

3.3 At present, the Technology Service Provider (TSP) selected by the SLBC at State level are

providing end to end solution for the implementation of the above said pilot project and also

for an exclusive FI plan implemented in two districts with assistance from NABARD.

3.4 For the present this Pilot Project is being implemented by adopting two models of Business

Correspondents as mentioned below.

3.5 Model -A The TSP has deployed its personnel as the Business Correspondents (Also called

as the Customer Service Providers (CSPs)) at the gross root level, for this project. The

remuneration for the CSPs being paid by the TSP.

3.6 Model – B, wherein Bank has also deployed its own Business Correspondents in select

Branches who are rendering services assigned by the Bank. The remuneration to these BCs is

paid by the Bank while the overall working of the BCs is monitored, supervised and

coordinated by the said technology service provider for the present.

3.7 With a view to expedite implementation of FI plan, the Bank has commenced the process of

engaging the field level Business Correspondents in the remaining 8 districts. The necessary

training to the BCs on the Banking related matters is being provided by the Bank.


PGB/FI-RFP/01/2010-11 of 80

3.8 The Bank would be adopting two different models for rendering financial services to villages

through Business Correspondent Agents. Hence, bidder to keep this aspect in view while

preparing the commercials and separate bid formats to be submitted for Model-A and ModelB.

The following is the brief information pertaining to the ongoing FI project in two districts.

Progress as at September, 30 2010

Note: The number of No Frill Accounts under existing pilot FI project may cross 1 lakh

by March 2011.

4 FINANCIAL INCLUSION PLANNED BY THE BANK

4.1 Now the Bank desires to cover all the households in 392 identified villages having more the

2000 population in Bank‟s command area for extending banking facilities during the first

phase of the plan commencing from FY 2010-11 to 2011-12. Thereafter, the plan is to cover

villages with less than 2000 population in the second phase from the FY 2012-13 onwards

covering 5 years period. The Financial Inclusion Plan (FIP) is an ongoing process and thus

shall be continued to be implemented even after 5 years period. FIP will be implemented

through ICT based solution through Business Correspondents (BCs) /Customer Service

Providers (CSPs).

4.2 DISTRICT WISE VILLAGES WITH POPULATION ABOVE 2000 ALLOCATED TO

OUR BANK

SL No. Districts No. of

Villages Villages to be covered

2010-11 2011-12

1 Bellary 115 46 69

2 Chitradurga 73 29 44

3 Davanagere 52 21 31

4 Kolar 7 7 0

5 Chikkaballapura 17 17 0

6 Koppal 52 21 31

7 Raichur 63 25 38

8 Shimoga 13 13 0

Total 392 179 213

4.3 In the first phase of the project villages with more than 2000 population are covered. There

are 392 such villages allocated to the bank which are spread over in 8 districts of Bank‟s

command area. As villages are within 8 districts the list of such villages will be provided to

Sl.

No District Name

SMART Accounts

opened

Total No. of

SMART

Cards

Beneficiaries

BCs

deployed

by TSP

BCs

deployed by

the Bank MGREGP SSP

1 Bellary

36274 7190 43464 24 45

2 Chitradurga 8346 965 9311 01 45

Total 44620 8155 52775 25 90


PGB/FI-RFP/01/2010-11 of 80

the successful bidder. The list of district wise villages with less than 2000 population to be

covered from 2012-13 onwards will be furnished to the successful bidder in the course of

implementation of the project.

4.4 Envisaged FI Plan

YEAR 2010-11 2011-12 2012-13 2013-14 2014-15 Cumulative

Position

No of BCs / CSPs 250 450 500 550 600 *600

No of smart cards 100000 200000 300000 400000 500000 500000

No of No. frill

accounts to be

brought under FI

(ICT based)

100000 200000 300000

400000

500000 500000

1.Villages with

more than2000

population 179 213 --

--

-- 392

2.Villages with less

than 2000

population 100 200 300 400 500 500

Note: Out of 2000 total estimated CSPs, already 200 BCs are selected for the FY 2010-11.

Already 90 Villages with more than 2000 population are covered in Bellary and Chitradurga

Districts, where in Bank is participating in the implementation of State level pilot project on

Smart Card payment to SSP/MGREGP beneficiaries.

* The total number of BCs is inclusive of those deployed by the TSP and Bank. Bank has

already deployed 200 BCs.

5 PRE-QUALIFICATION CRITERIA FOR BIDDERS

5.1 The prospective bidders who comply with the following criteria are only eligible to bid.

5.1.1 The principal bidder should have been a Bidder/Service Provider (preferably as a System

Integrator) for providing Financial Inclusion solution (such as Government‟s Electronic

Benefit Transfers : Pensions & MGREGP payments, etc) in at least one Public Sector Bank in

India (copies of purchase orders / reference letters to be enclosed).

5.1.2 The principal bidder will be single point of contact to provide the solution to the Bank.

5.1.3 The principal bidder must be fully aware of the guidelines with regard to Financial Inclusion

Solution, issued by Government of India (GOI), Reserve Bank of India (RBI), National Bank

for Agriculture and Rural Development (NABARD), Institute for Development and Research

in Banking Technology (IDRBT), Indian Banks‟ Association (IBA), National Payments

Corporation of India (NPCI), Mobile Payment Forum of India (MPFI) and Unique

Identification Authority of India (UIDAI) etc.,

5.1.4 The principal bidder should be the provider of technology solution and should meet the

requirements under the RFP, with a solution based on a proven and field-tested technology that


PGB/FI-RFP/01/2010-11 of 80

is already in operation for at least one year and, is willing to and has capability to incorporate

new standards with respect to Financial Inclusion prescribed by GOI, RBI, NABARD, IDRBT,

IBA, NPCI, MPFI, UIDAI etc., in the solution.

5.1.5 The principal bidder should be financially solvent having positive net-worth.

5.1.6 The principal bidder should have strong organizational strength to undertake and execute large

projects including hardware, software, networking, managing of data centre, disaster recovery,

system integration, implementation, etc. System integration should be based on industry best

practices.

5.1.7 The principal bidder should be willing to extend the services in the deep interior villages of our

Bank‟s command area.

5.1.8 The member of the consortium undertaking the role of Business Correspondent / Business

Facilitator under the Project shall conform to the requirements of RBI/NABARD and Bank‟s

internal policy.

5.1.9 The principal bidder should provide documentary evidence for having tied-up with the main

participating agencies.

6 ELIGIBILITY CRITERIA

Sl.No. Eligibility Criteria Documents Required

6.1 The bidders shall be a limited company

registered under Indian Companies Act

1956

For Business Correspondent services

the company should be registered under

Indian companies Act 1956, including

Sec 25 companies and excluding Non

Banking Financial Companies

(NBFCs). This is as per the RBI

guidelines and hence to be complied

with.

1. Copy of Memorandum of

association, Copy of the

certificate of incorporation and

commencement of Business.

2. The bidder should provide

the details of their branches/

offices/outlets across the

Karnataka State /Country.

6.2 The Bidders should have implemented

or is in the process of implementing

financial inclusion project in at least

one Public Sector Bank in India.

Certificate/Letter from the

bank for having implemented

or in the process of

implementing the project along

with copies of purchase order.

6.3 The solution should have been

implemented or in the process of

implementing in at least 100 locations

in India.

Details of bank wise states and

districts where solution is

implemented or being

implemented.

6.4 The bidders should have been in this

line of business for the last one year.

Implementation reports/Letter

from the Banks or Purchase

order.


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6.5 Bidder shall be the Original Equipment

Manufacturers (OEM) or authorized

dealers of the HHTs (Micro ATMS).

If the bidder is not a OEM/authorized

dealer he should have back to back

agreement with standard equipment

manufacturer or authorized dealer

during the tenure of the project.

However, bidder should ensure that

solution to be provided conforms to

prescribed standards & is interoperable.

1. Declaration in case of OEM

2. Authorization Letter from

OEM incase if the bidder is an

Authorized Dealer.

6.6 The Bidder should have minimum

turnover of Rs.20 Crore per year during

the last two financial years.

Audited balance Sheets for last

3 years.

6.7 The Bidder should be profit making

company for the last 2 years.

Audited balance Sheets for last

3 years.

7 CONSORTIUM

7.1 CONSORTIUM OF SERVICE PROVIDERS

7.1.1 Bidder may have a tie-up to form a consortium through back-to-back agreement for the

complete duration of the contract for providing end-to-end solution

7.1.2 The Bidder, as one of the key participants of the Consortium should assume responsibility on

behalf of the consortium members for providing end-to-end solution i.e., financial, personnel,

technology and any other infrastructure that would be required in this context.

7.2 CHANGES TO CONSORTIUM

7.2.1 Bank shall have sufficient notice (a minimum of 90 days) of intentions of exit by the bidder

or any of its consortium members.

7.2.2 In the event of exit of the Bidder or any of its consortium members, bank may at its

discretion terminate the contract in whole or in part.

7.2.3 The customer data and all other records & confidential information held with the respective

parties shall be handed over securely in a suitable form to the new vendor or as directed by

the Bank.

7.2.4 Bidder will indemnify bank of any transition-related risks or disruptions to services or

incidental damages arising from changes to consortium, constitution of the members to the

consortium, etc.

7.2.5 The handing over procedure for data, systems, cash on hand, other liabilities etc shall be as

prescribed by the Bank.

7.2.6 Bank reserves the right to change the Vendor or any of its consortium members with

reasonable notice to the concerned.


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7.3 ENGAGEMENT OF MULTIPLE BIDDERS

7.3.1 Bank reserves the right to award contract to more than one consortium to cover the

existing or extended scope of the work, if the bank so desires.

7.4 CO-OPERATION BETWEEN MULTIPLE BIDDERS

7.4.1 In a situation where multiple-Bidders are deployed by the Bank to support this solution then the

Bidders would develop required interfaces and co-ordinate joint operations so as not to impact

the interests of the Bank and the services rendered to the customers.

8 SCOPE OF WORK

8.1 OPERATIONAL EXPENSES (OPEX) MODEL

8.1.1 The Bank requires an end-to-end solution in an OPEX model from the bidder involving

Supply, Customization, Installation, Operations, Maintenance of required Smart Cards,

Devices, Hardware & Software, Facility Management in addition to engaging of Business

Correspondents (BCs) and agents to Deliver & Support Banking & Financial Services.

8.1.2 The human resources and infrastructure (systems architecture, support services, facility,

hardware, software, application, network, connectivity consumables and security

systems) required for end-to-end solution would belong to, be maintained, managed and

operated by the Bidder.

8.1.3 Selection of Business Correspondents (also called as Customer Service Providers(CSPs)

at the service-delivery points shall conform to Bank‟s /GOI/ RBI/ NABARD‟s

guidelines.

8.1.4 The Bank has around 5.60 lakh No Frills accounts opened over the years and being

operated at Branches. During the course of implementation of the Financial Inclusion

Solution, eligible existing No Frills accounts from different Branches will be required to

be segregated and the same have to be opened at FI Server for covering them under Smart

Card based financial inclusion. The Bidder should provide necessary solution for transfer

of such existing account to FI Server/CBS.

8.1.5 Individual accounts of the customers of Financial Inclusion (FI) shall be maintained on

the FI Server at the beginning and later on to be made available on proposed Core

Banking System (CBS). The technology solution provided under this project shall have

interfaces with bank‟s existing FI Server and proposed CBS (Finacle). The FI server

should be provided by the bidder so that it will be his responsibility to size the

server/hardware properly and ensure the server takes are the whole accounts and

transaction load. The data in the existing FI server also should be shifted to the proposed

FI server to be provided by the bidder.

8.2 All the hardware, software, connectivity, consumables, etc at the service delivery points would

be to the cost of the Bidder.


PGB/FI-RFP/01/2010-11 of 80

8.3 The Smart Card based financial inclusion solution must be proven and field tested, field

upgradeable with inter-operable technology.

8.4 The end-to-end financial inclusion solution (all Hardware, Software etc.) should at all time be

compliant with standards / guidelines issued by GOI / RBI /NABARD/ IBA / IDRBT /

UIDAI/NCPI/MPFI authorities and/or other statutory authorities including the Bank with

regard to Financial inclusion solution.

8.5 The Financial Inclusion Solution (FIS) should be scalable to meet Bank‟s road map and take

care of customer & transaction growth during the contract period.

8.6 The Smart Card based Financial Inclusion Solution should be highly secured, highly available

and scalable to other channels such as Mobile/UID.

8.7 The smart Card based Financial Inclusion should support both On-line and Off-line mode

transactions.

8.8 The solution architecture proposed by bidders both for On-line as well as Off-line mode has to

ensure financial data integrity with Hand Held Terminals and the FI server, and later on with

CBS which is in the implementation stage. The Bidder should submit a write up on the above

as to how he is ensuring the same.

8.9 Interface with Rural – ATMs & Point of Service (PoS) Terminals

a. Bank may introduce smart-card enabled rural ATMs that shall have a provision to

authenticate transaction based on fresh finger-print sample that is matched with minutiae

stored on the smartcard or a remote authentication server authorized by the Bank or UID

authorities database or centralised database.

b. The Bidder shall build necessary interfaces for enabling use of smartcards (those issued

under this project) on such ATMs and PoS terminals.

8.10 The Smart Card based Financial Inclusion should support multiple products which include

deposits, loans and remittances, third party products such as micro insurance, Government

Payments (Pension & wages under MGREGP).

8.11 The Smart Card based Financial Inclusion solution should be Device-agnostic and network-

agnostic.

8.12 Bidders are required to identify, engage and maintain field level BCs/CSPs for field level

activities such as Identification, enrollment of customers, educating customer on various

banking schemes/services and providing of financial services at the door steps of customer etc.,

8.13 Even when Bank continues to adopt Model-B for engaging services of BCs/CSPs the

responsibility of supervision and coordination of working BCs will be entrusted to the Bidder.

8.14 Bidder to provide a comprehensive MIS regarding villages, details of beneficiaries and scheme

wise data etc., for regulatory and controlling aspects.


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8.15 It is the sole responsibility of the Bidder to impart necessary technical / functional training to

BCs/CSPs as well as Bank Staff to handle Financial Inclusion Solution & devices. Bidder to

provide user manual, training material etc. during the training.

8.16 Bidder to supply, install, commission and maintain FI server capable of accepting customer

enrollment details (KYC data, finger prints etc.) and transactions from HHTs deployed for FI

server. FI server should be located at bank‟s proposed data centre Bangalore and DR site at

Mumbai. Bidder has to provide necessary solution (Hardware/Software etc) to ensure high

availability so as to ensure 100% uptime and its connectivity to HHTs and to CBS servers.

Facility Management has to be provided by the vendor. Facilities Management should be

available for 24X7 basis to support FI server and resolving functional/technical issues with

regard to FI server, field level issues and card management etc.

8.17 Successful Bidder/s to do Pilot implementation in command areas of six (6) of branches of

different districts identified by Bank to show application functionality & capabilities of

proposed FIS, at bidder/s cost. During the Pilot Project bidder/s to demonstrate all applications,

services, associated features & functionalities mentioned in RFP to be delivered to the Bank.

8.18 The bidder should commit to provide services for implementation, support, maintenance etc.

for the proposed solution for a Contract Period of minimum 5 years.

8.19 A special Financial Inclusion Plan based on ICT solution with Business Correspondent model

is in the advanced stage of implementation by the bank in two districts. In the event of Bank

deciding to discontinue the services of the existing Technology Service Provider (TSP) the

bidder should carry out the project on the terms and conditions of this RFP..

8.20 Bank reserves its right to take over the FI server Management, data interface and application

software from Bidder/s for handing over the same to any other specialized agencies at the cost

of the bidder, in case the Bank is not satisfied with the services being provided by the bidder.

8.21 Bank reserves the right to switch over from Smart Card based solution to mobile / UID etc.,

based solution on any future date, the selected bidder has to facilitate such switch over

smoothly without any extra cost to the Bank.

8.22 Bidder should possess proper licenses, wherever applicable, for hardware / software / third

party utilities etc., provided to the Bank for end-to-end solution. Licenses including corporate

Licenses should also be for rolling out the proposed end-to-end FIS in any locations and

number of identified villages / zones with no upper limit either for locations or for equipments.

8.23 Bank may desire to split its purchase order on multiple technically qualified Bidders with

multiple solutions. In that case though the Bidder might have considered entire financial

inclusion solution project for bidding and quoting his competitive price for L1, actual work

order may be at a lower scale. The Bank‟s decision in this regard will be final and binding on

Bidders.

8.24 All the bidders have to submit complete technical, functional, transaction flow etc details of

their proposed end to end financial inclusion solution in technical bid.


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8.25 Bidders also to provide user documentation, system administration manuals, training material,

and Business continuity plan etc.

8.26 The bidder should provide interface (API) with Bank‟s CBS Solution (Fincale) which is in the

implementation stage as per the requirements (in specified formats) provided by CBS vendor

and also provide middleware (hardware and software) required. However, the Cost of

customization in CBS package will be borne by bank and all other cost/charges should be borne

by the bidder.

8.27 Data related to Accounts such as KYC details, financial & non-financial Transactions etc.,

should be accessed online/offline from/to existing FI Server and proposed Bank‟s CBS

(Finacle) server.

8.28 Bidder should take adequate insurance policy from time to time against cash /HHT for theft /

misappropriation etc., by BCs / CSPs and should be assigned in favour of Bank.

8.29 Bank reserves the right to engage BCs/CSPs to expedite in achieving Bank‟s FI Road map. In

the above process the Bank may also take over the BCs/CSPs engaged by the TSP.

8.30 Bidder to issue, personalize, deliver new smart cards, as a replacement, in case of loss / damage

/ non-functioning etc. of existing cards, only after the prior approval of Bank and proper card

management.

Card Re-issuance in case of Loss or improper use / storage by beneficiary /account holder will

be borne by the Bank/customer. All other re-issuance can be done free of cost.

8.31 Cash Management by the Bidder

8.31.1 Bank will provide the cash required at the Branch(s) to the Bidder/BC as the case may

be, for carrying out day to day transactions.

8.31.2 Providing of cash by the Bank to the bidder/BC and its management by the Bidder/BC

shall be as per the Bank‟s policy /RBI/NABARD guidelines.

8.31.3 The bidder/BC shall be responsible for security & safe keeping of the cash in their

custody. Further, the bidder shall ensure that the cash in transit/ in their custody is

adequately covered under insurance at their own cost.

8.31.4 The Bidder is expected not to hold cash more than what is reasonably required by them

to meet bank‟s transactions.

8.31.5 Bidder will indemnify the Bank of all losses / risks associated with the cash in transit,

cash balances held or handled by the Bidder, their representatives.

8.31.6 Bidder will account for all such cash received on a daily basis by providing the Bank

evidence of all Cash payments made to customers, Cash receipts from the Customers

and Cash balances held at each of the locations.

8.31.7 The formats and the details to be furnished, procedure for balancing & reconciliation,

etc will be prescribed by the Bank.


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8.31.8 Based on the risk perception of the Bank, the Bank may stipulate financial ceilings on

net exposures to Bidder.

8.31.9 Where the amount required is more than a prescribed ceiling limit, the Bidder may be

allowed to draw cash only up to the ceiling limit, disburse the cash, account for the

usage and draw further amounts from the Bank.

8.31.10 Bidder would be permitted to operate any number of times during the authorized

business hours of the Bank‟s designated branches.

8.32 The smart Card based Financial Inclusion Solution will be OPEX (operating Expenses)

based model where Bank would pay charges, based on –

8.32.1Per new customer enrollment (Identification of potential

customer, Complete the customer enrolment procedure as per the Bank‟s requirement

which includes computerized application generation,filling of account opening forms,

verification of primary information/data, capturing of KYC data, photo / image of the

identified customer, capturing fingers print, De-duplication, Upload the enrolment data

at FI Server & uploading the data in proposed CBS Server etc.)

8.32.2 Per Successful financial transactions (Cash Credit or Debit) carried out through Hand

Held Terminals (Balance Enquiry and Mini Statement, Bulk credit or debit, system

generated transactions are not considered as financial transactions) No charges will be

paid for non-financial transactions such as balance enquires, mini statements etc.

8.32.3 The Cost of the Smart Card. (personalization with fingerprints, digital photo, other

data).

8.32.4 No other charges / amount will be paid by the bank other than the above.

8.32.5 Bank also may extend other services like cross selling of Insurance/Mutual Funds

products, monitoring and follow up loan accounts, recovery of overdue accounts,

organizing of customer meets and Customer education etc., or any other services which

Bank may decide, through BC.

8.33 Bidder should provide dedicated staff/personnel to interact with Bank and to carry out day to

day operations like MIS and Grievances re-dressal etc.

8.34 The solution should have card management system which should handle all the issues related to

entire life cycle of the card. This module should handle the following business logic:

a. Card creation (Printing, personalization etc.)

b. Card issue

c. Card Status checking

d. Lost card management

e. Re issue of cards

f. Blocking and unblocking of cards etc.


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8.35 MANAGEMENT INFORMATION SYSTEM (MIS)

8.35.1 Bidder shall put in place a robust MIS system in order to monitor all the activities

connected with the Pragathi Gramin Bank Financial Inclusion Solution.

8.35.2 Bidder shall assist the bank in defining exception transactions and monitor all such

exception transactions from a central location in the Bank.

8.35.3 It should also be possible to centrally monitor and obtain reports on cash movement,

cash balances, cash payments, etc at each of the front-end functionaries. Bank should

also be able to obtain various reports on customer wise, Village wise, Mandal wise,

hobliwise, taluka wise, district wise, Scheme-wise, etc as and when required.

8.36 The Bank may adopt Model-A or Model-B or both the for rendering

financial services to villages through Business Correspondents/CSPs.

Model-A: The Business Correspondents engaged by the Technology Service

Providers (TSP) shall be required to render the services on the lines mutually agreed by the

Bank and the TSP, and the remuneration to the CSPs being paid by the TSP.

Model-B: The Business Correspondent (BC) already empanelled and those to be empanelled

by the Bank will be rendering the services. They shall be required to discharge

duties/responsibilities assigned to them by the Bank. However, the Bank reserves the right to

entrust all the BCs to the Bidder or place the BCs engaged by the Bidder under Bank‟s

control, at a later stage, for accomplishing the objective of the FI Plan.

The detailed information relating to above models is covered under clause 11 of this RFP.

9 SERVICES AND FACILITIES TO BE OFFERED UNDER FI SOLUTION:

9.1 BASIC BANKING PRODUCTS & SERVICES

The basic set of products that bank intends to offer under Financial Inclusion comprises of:

9.1.1 Savings Bank account with built-in overdraft facility

9.1.2 Various Term Deposit Scheme Accounts

9.1.3 General Credit Card (GCC) and Kisan Credit Card (KCC)

9.1.4 Cash Credit account

9.1.5 Overdraft account

9.1.6 Demand Loan account and Term Loan account

9.1.7 Remittances

9.1.8 Insurance products

9.1.9 Identifying potential customer, marketing, soliciting patronage

9.1.10 Enrollment i.e., collection of application forms, verification of credentials, (capturing

biometrics, photograph, personal data, account related data, etc), KYC Compliance,


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securely transmitting the data/documents to designated location, delivery of personalized-

smart card to the right customer.

9.1.11 Opening of accounts as authorised by the bank

9.1.12 Transactions in the Accounts - Cash deposit / withdrawal and Transfer debits/credits

9.1.13 Balance enquiry and mini-statement

9.1.14 Account closure after compliance with bank‟s guidelines

9.1.15 Bulk upload / download facility for account data, customer data, transaction data, etc.

9.1.16 The nature of services will be informed to the Bidder by the Bank from time to time. These

services may also include:

9.1.17 disbursal of small-value credit;

9.1.18 recovery of principal / collection of interest;

9.1.19 collection of small value deposits;

9.1.20 sale of micro insurance/ mutual fund products/ pension products/ other third party products

and;

9.1.21 receipt and delivery of small value remittances/ other payment instruments;

9.1.22 business facilitation to the Bank;

9.1.23 identification of borrowers and fitment of activities;

9.1.24 collection and preliminary processing of loan applications including verification of primary

information/data;

9.1.25 creating awareness about savings and other products and education and advice on

managing money and debt counseling;

9.1.26 processing and submission of applications to banks

9.2 COMPLIANCE REQUIREMENTS

9.2.1 The entire activity under this solution would be guided by and conform to policies and

guidelines of the Bank, Reserve Bank of India, NABARD, IDRBT, State and Central

Governments, legal provisions etc.

9.2.2 Service management process based-on ITIL standards.

9.2.3 Smart-card specifications, Bank Terminal (also referred to as Point-of-Transaction

terminal or Handheld device in this RFP), Key Management, Specifications for

interoperability, etc would conform to IDRBT‟s “Open Standards for Financial

Inclusion”.

9.2.4 Biometric standards would comply with RBI‟s “Report of the Working Group on

Standards for Raw Images of Finger Prints”


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9.2.5 Information Security standards for end-to-end solution would conform to ISO 27001,

CERT-In guidelines, IT Act 2000, RBI, Government, IDRBT and Bank‟s policies

9.2.6 Business Correspondent / Business Facilitator deployed for rendering outsourced

banking/financial services will conform to Bank‟s/ RBI‟s/NABARD guidelines.

9.2.7 The business practices, processes adopted for rendering services, maintenance of

records, accounting norms & procedures etc for Banking and Financial services shall

conform to regulatory, legal and bank‟s policies and guidelines.

9.2.8 Customers enrolled under the project shall meet “Know Your Customer (KYC)” norms

as stipulated by RBI and the Bank.

9.2.9 Accounts, transactions, services, controls, etc related to banking and financial services

should integrate with Core-Banking System

9.2.10 The solution should conform to and integrate with micro-ATM and mobile-banking

solution proposed by Inter-Ministerial Group recommendations for Financial Inclusion

as and when the same are enforced on the Banks.

9.2.11 The solution should conform to and integrate with UIDAI‟s directions on Financial

Inclusion.

9.2.12 The source-code should be held under Escrow arrangement with the Bank or mutually

agreeable third-party at the cost of the bidder.

9.3 THIRD-PARTY RISKS AND MITIGATION BY THE BIDDER

9.3.1 Bidder and their consortium members should ensure that in addit ion to

security features deployed in the technology, controls and operat ional

procedures should ensure protection of the bank from loss, disclosure or

frauds.

9.3.2 Bidder shall indemnify the Bank from transaction risk (from system error, human error,

negligence and mismanagement) and fraud risk (loss to earnings or capital due to

intentional deception by employees, customers, agents, external entities, etc).

9.3.3 The Bidder shall indemnify the Bank and provide a system free from risks arising out of

data becoming outdated, lost or overwritten due to inappropriate update procedures and

the potential for frauds.

9.3.4 Bidder shall indemnify the Bank and hold the bank harmless against loss or liability,

claims actions or proceedings if any, that may arise through the action of its employees,

agents, contractors, etc.

9.3.5 Bidder shall assist the Bank in identifying potential risks in the solution, remedy any of

the identified risks, develop strategies to measure, monitor and mitigate those risks and

implement new controls.

9.3.6 Bidder should provide Disaster Recovery Procedure and Business Continuity Plan for the

proposed solution.


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9.3.7 Bidder shall maintain adequate documentation, records, audit trails, etc and cooperate

with the Bank‟s internal audit teams, regulatory authorities and third-party external

auditors for conducting periodical audit and arrange for necessary access to relevant

information / assets under the control of the bidder and other consortium members.

9.3.8 Financial Exposures & Performance risks from third-party service providers under the

project would be regulated and mitigated through Financial Guarantees, Collateral

Securities, etc based on risk perception of the Bank.

10 TECHNICAL REQUIREMENTS & SPECIFICATIONS

10.1 The Solution should be as per the standards specified by IBA/IDRBT under “open

standards on smart card based solution for Financial Inclusion” from time to time. And

smart Cards should support inter-operability standard specified by IBA/IDRBT, UIDAI

among different systems.

10.2 The solution should be compatible with UIDAI standards stipulated in respect of HHTs

(Micro ATMs). Micro ATMs should support both contact card reader and contactless card

reader.

10.3 The solution shall be capable of handling minimum of 9 Banking functionalities such as

opening of SB accounts, cash deposits, withdrawals, balance inquiry , mini statement, bulk

upload of EBT Govt. payments like MGREGP, SSP and Remittances, Loans, Deposits,

Micro insurance, Mutual funds in both individual and group accounts such as Self Help

Groups, joint Liability Groups. The solution should provide the history of last 10

transactions per account.

10.4 The solution should ensure secure communication between Hand Held Terminals (HHTs)

and FI Server and comply with acceptable security standards such as SSL for data

download and upload.

10.5 The solution should be compatible/available at branches using Laptop/Desktops besides

Hand Held Terminals so as to enable customer to make transactions in bank premises in the

event of failure of HHT or otherwise.

10.6 The solution should support minimum of 25000 financial transactions per day at the initial

stage. The Hardware and Software should be right sized to meet transactions envisaged as

above and such that the response tie is acceptable to the bank.

10.7 The solution should provide standard MIS Reports as required by the bank and capability

to provide MIS as required by statutory authorities for Financial Inclusion.

10.8 The solution should have provision for taking backups of the transaction data and master

data at periodical intervals and conform to Backup standards as contemplated by

Information Technology Act, 2000.

10.9 The Financial inclusion solution should have facility to take backups of transaction data,

audit trail, logs etc., in external media.

10.10 The FI server should have capability of pushing software upgrades, revised business rules

to HHTs during every Beginning of Day (BOD) activity to ensure that the devices have the

latest versions and business rules.

10.11 The solution should have capability of parameterization of settings at FI servers for the

upper / lower limits of all type of transactions.


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10.12 HARDWARE UTILIZATION – The vendor is expected to size hardware based on the

information provided in this RFP. At any point in time during the contract period during

business hours, the average CPU memory, hard disk utilization should not exceed 80%

threshold (excluding EOD / BOD processing). In case the above requirement is not met,

additional hardware would have to be provided by the vendor at no further cost, within 2

weeks of crossing the threshold. The vendor has to ensure that, the configuration proposed

is capable enough of handling the proposed load and volume. 10.13 The FI server should have controlled access to the authorized personnel only as per banks

IT security guidelines.

10.14 Bidder has to maintain Mean Time To Restore (MTTR) of 2 hours for its FI server at Data

Center (DC) and Disaster Recovery Center (DRC).

10.15 The HHTs should support connectivity through any communication channels such as

GPRS, GSM, CDMA, and PSTN depending upon the type of connectivity available at the

local place of operation.

10.16 The HHTs should support voice guidance mechanism with Local language also apart from

English for all the activities done on HHTs.

10.17 Any activity through the HHTs should be processed only on the biometric authentication of

the BC and the customer jointly.

10.18 HHTs and its application should be capable to fetch software upgrades, revision in business

rules etc from the servers at the time of BOD for having the latest version of the software

as well as business rules.

10.19 HHT Printers should be able to print the receipts of all type of transactions in local

language. The paper and print quality used for generating transaction receipts on HHT

should meet the laid down standards.

10.20 The solution and HHTs shall support online and offline transactions. In case of online

transactions it should be integrated with Bank CBS (Finacle) as per ISO 8583 format or any

other format specified by Bank and support protocol such as TCP/IF.

10.21 Audit trails should be stored for all the transactions.

10.22 The bidder should provide hardware/software support for uploading the daily data from the

HHTs Bank‟s system for updating customers account and downloading the

transactions/balance from the Bank‟s system to HHTs.

10.23 The card type should be a contact smart card and should have EEPROM size of minimum

32KB for Customers and minimum memory size of 64KB for HHT Operator card.

10.24 The personalized Smart card design should include Name of the card holder, Account

Number, Photo, address, father‟s/husband‟s name, date of birth, bank identifier and at least

3 fingerprints each from both hands. Insta cards are not acceptable.

10.25 HHT should not allow more than 2 transactions (remittance or withdrawal or both put

together) per day to the smart card holder. More than 2 transactions per day should not be

permitted even if the amount drawn/remitted is within the per transaction ceiling limit

prescribed by the bank. However if BC allows more than stipulated transaction same will


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not be eligible for any charges payable by the Bank and charges shall be for first 2

transactions which is stipulated for the present. Each transaction allowed to the customer

by the BC should not cross maximum limit prescribed by the Bank. Bidder must provide

particulars of such transactions (i.e. more than two) if any as and when asked by the Bank.

Transactions not effected for technical reasons should be excluded for the above purposes.

Similarly, balance enquiry and mini statements, Bulk credit or debit, system generated

transactions, are not considered as transactions.

10.26 All the accounts (Deposits and Loans) operated on HHTs through smart cards shall be

transferred from CBS to FI Server at the beginning of each day and they shall be

transferred back from FI Server to CBS at the end of each day.

10.27 Unique ID in the Smart Card should contain Bank Identifier Code.

10.28 Status marking of the Smart Cards/accounts

i. There shall be provision in the system to block, activate, deactivate, marking as inactive,

specify asset code (based on IRAC – income recognition and asset classification for

borrowal accounts) suspend, revoke and restore transactions using any specified smart

card and accounts. There should be provision for generation popup message through the

system which should popup in the HHTs.

ii. The systems should be able to effectively enforce these conditions and related business

rules both in offline and online modes.

iii. There shall be a provision to communicate bank‟s instructions on change in status of

smartcard/account centrally.

10.29 The bidder should ensure business continuity for the proposed solution.

10.30 The bidder must also ensure that the secrecy and confidentiality of customer data is never

compromised and enter into a non-disclosure agreement with the Bank for the same.

10.31 The bidder as part of Technical compliance of the solution, has to give a demo of the

solution and arrange for an on site visit to one of the Public sector banks, where the

solution in implemented. The site visit shall also include Point of Transaction by the BC

and Back office of bidder.

10.32 The bidder has to provide a detailed write up on offline and online transaction flow.

10.33 Bank does not have any plans to take over assets (hardware, software etc) after contract

period.

10.34 The entire FI data in the FI/other server is the property of the Bank. The Bidder has to

securely handle the same and hand over the entire data whenever called for.

10.35 The Bank has around 5.60 lakh No Frills accounts opened and being operated at Branches.

During the course of implementation of the Financial Inclusion Solution eligible existing

No Frills accounts from different Branches will be required to be segregated and the same

have to be opened at FI Server for covering them under Smart Card based financial

inclusion. The Bidder should provide necessary solution for transferring existing account to

FI Server/CBS.


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11. BUSINESS CORRESPONDENTS SCOPE AND OTHER CONDITIONS

The Bank at present has adopted the following two models for engaging of services of the Business

Correspondents who are rendering financial related services to the villages having more than 2000

population as well as those with less than 2000 population. Hence, it is compulsory for the bidders to

submit the proposals for both Model_A and Model B, separately.

11.1 MODEL A: BCs engaged by the bidders

11.1.1 The Bidder should engage the BCs belonging to the villages allocated to Branches

implementing Financial Inclusion Plan.

11.1.2 Bidder will exercise due diligence and only engage persons having established identity,

integrity, requisite qualifications and skills and deployment experience for all critical

activities.

11.1.3 The bidder shall involve the Bank‟s representatives in the selection process of the BCs.

11.1.4 The bidder shall be responsible to meet all the expenditure pertaining to BCs engaged

by them.

11.1.5 The bidder shall be required to ensure that the BCs discharge the assignments entrusted

by the Bank from time to time.

11.1.6 The bidder to provide all other infrastructure like Supply, Customization, Installation,

Operations, Maintenance of required Smart Cards, Devices, Hardware & Software,

connectivity, Facility Management in addition to engaging of Business Correspondents

(BCs) and agents to Deliver & Support Banking & Financial Services.

11.2 MODEL B: BCs engaged by the Bank

11.2.1 The Bank will be engaging the BCs depending upon the circumstances and need.

11.2.2 The remuneration to BCs will be met by the Bank

11.2.3 The Bidder shall be required to monitor, supervise and coordinate the working of BCs

engaged by the Bank.

11.2.4 At a later stage the Bank may handover the BCs to the bidder for providing the services to

the Bank. In such an event, the bidder shall continue to engage the services of such BCs on

the terms and conditions adopted/stipulated by the Bank.

11.2.5 The bidder to provide all other infrastructure like Supply, Customization, Installation,

Operations, Maintenance of required Smart Cards, Devices, Hardware & Software,

connectivity, Facility Management services etc.

11.3 SCOPE OF BCs:

11.3.1 The Bidders should engage BCs / CSPs (Field level personnels (BCs) chosen to provide

banking services are also are also termed as CSPs) as per RBI/NABARD/Bank‟s


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guidelines and the BCs/CSPs shall be required provide services as per the Bank‟s

requirement.

11.3.2 The Number of villages to be handled per BC/CSP will be decided by the bank as per

Bank‟s Plan for Financial Inclusion and it should be in accordance with guidelines

issued by RBI/NABARD.

11.3.3 In case of exit of the existing Technology Service Provider implementing on going

Financial Inclusion Plan ( in Bellary and Chitradurga District) the bidder shall continue

the services of existing BCs/CSPs belonging to TSP as well as the Bank.

11.3.4 The bidders should ensure that due diligence and fulfillment of eligible conditions have

been taken care of while engaging the services of BCs/CSPs covering the following

aspects as per the RBI guidelines.

a. Reputation / Market Standing of BC

b. Financial soundness

c. Management and corporate governance

d. Cash management

e. Ability to implement technology solutions.

f. Ensure and govern banking secrecy.

11.3.5 The Bidders are required to identify, engage, and maintain individual BCs/CSPs as per

RBI/NABARD guidelines for field level activities. The nature of services to be

rendered will be informed to the successful bidder from time to time. The illustrative

list of activities proposed are as follows:

a. Identify potential customers

b. Enrolment of customers

c. Opening of SB accounts with in-built overdraft facility, loans etc.

d. Taking photographs and Finger prints of Customers

e. Customer transactions such as Cash Deposits, withdrawals

f. Closure of SB Accounts.

g. Disbursal of small value credit

h. Recovery of Principal/Collection of interest

i. Collection of small value deposit

j. Sale of Micro insurance

k. Sale of Mutual fund products, pension products/other third party products.

l. Receipt and delivery of small value remittances/other payment instruments.

m. EOD and BOD activities in HHTs.

n. Associate themselves with Govt. officials for enrolling the beneficiaries.

o. Management of Cash and related security aspects.

In addition to the above, BCs/CSPs have to handle the work of Business Facilitator such as:

p. Identification of borrowers & fitment of activities

q. Collection and preliminary processing of loan applications including verification of

primary information / data.

r. Creating awareness about savings and other products.

s. Financial education such as advice on managing money and debt counseling.

t. Processing and submission of applications to banks.

u. Promotion and nurturing Self Help Groups/Joint Liability Groups.


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v. Monitoring and handholding of Self Help Groups/Joint Liability Groups/Credit Groups

and others.

w. Post sanction Monitoring.

x. Follow up for recovery.

y. Serving of Notices/ Letters to the customers.

z. Any other work entrusted by the Bank from time to time.

11.3.6 The BCs/CSPs should comply all the terms and conditions as envisaged in the

agreement. If the services rendered by the BCs/CSPs is found to be not satisfactory by

the Bank their service can be discontinued and alternate arrangements to be made.

11.3.7 Bank reserves the right to engage BCs/CSPs on its own to expedite to achieving Bank‟s

target under Financial Inclusion.

11.3.8 Bank also reserves the right to take over the BCs engaged by the Bidder, if found

necessary at a later stage, in which case the bidder shall facilitate the transfer process

of BCs to the Bank.

11.3.9 It is the sole responsibility of the bidders to impart necessary technical / functional

training to the BCs/CSPs and Bank Officials to handle FIS and HHTs under both the

above mentioned models.

11.3.10 Bidders should take adequate insurance policy from time to time against theft,

misappropriation, etc. by BCs/CSPs and should be assigned in favour of the Bank.

11.3.11 The Bidder shall provide MIS report on monitoring BCs/CSP progress of working at

the periodicity as stipulated by the Bank.

11.3.12 Bank reserves its right to inspect BC/CSP work or monitor progress and records kept in

manual or magnetic or electronic media as and when desired.

11.3.13 The BCs/CSPs are not permitted under any circumstances, to charge any fee from

customers directly or indirectly for services rendered by them on behalf of the Bank at

present.

11.3.14 The bidder has to provide reports on appointed BCs, Area/Village/Block wise with the

stipulated periodicity given by bank.

11.3.15 The Monthly targets for customer enrolment shall be give to BC by the bank from time

to time which has to be achieved for ensuring timely completion of the enrollment. For

any short-fall in achievement of monthly target attracts penalty at the discretion of the

Bank.

11.4 DUTIES AND RESPONSIBILITIES OF BCs:

11.4.1 The BCs/CSPs will be responsible for physical custody and upkeep of the HHTs

provided for front end operations

11.4.2 Identification of potential customers for opening of accounts.

11.4.3 Enrollment of Customers for issue of smart cards.

11.4.4 Opening of SB accounts complying with KYC norms.


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11.4.5 Taking photographs and Finger prints of Customers.

11.4.6 Accepting of Cash receipts of small value from the card holders.

11.4.7 Permitting cash withdrawals of small value to card holders.

11.4.8 Handling of transactions with due care, diligence and sensitivity.

11.4.9 Ensuring that the transactions are uploaded to the host server/bank server

immediately in case of online transaction, and within 24 hours in case of offline

transaction.

11.4.10 Provides banking services on behalf of the bank at the doorsteps/villages allocated.

11.4.11 Closure of SB Accounts duly complying bank norms.

11.4.12 Beginning of Day (BOD) activity and downloading the transactions to HHTs.

11.4.13 End of Day (EOD) activity and uploading the transactions to the server.

11.4.14 Addressing grievances of customers relating to transactions.

11.4.15 The BCs/CSPs should refrain from any action that could tarnish the image and

reputation of the bank and observe strict customer confidentiality.

11.4.16 The BCs/CSPs will not resort to any kind of harassment against any person while

discharging his/her duties.

11.4.17 The CSPs shall ensure that the daily cash transaction limit does not exceed Rs.2000/-

per transaction per individual or with a maximum of two transactions. Daily cash

transaction limit and number of transactions will be subject to review from time to

time.

11.4.18 Mobilize the people and create awareness about savings and other financial products

of bank.

11.4.19 Preliminary process of Loan application such as, identification of prospective

borrower, background of the borrower, to assess their credit needs and filing of loan

application.

11.4.20 Post loans sanction monitoring and follow-up for recovery.

11.4.21 Promoting Self Help Group / Joint Liability Group.

11.4.22 Submitting progress report of CSP for monitoring and reviewing.

11.4.23 Assist the Bank to engage new BCs/CSPs, before he /she leaves the job, so as to

enable bank to have business continuity.

11.4.24 Any other assignment entrusted by the Bank from time to time.

11.4.25 The bidder should confirm that the charges payable to CSPs should include both

Fixed and Variable cost as per RBI Guidelines.


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12. BANK GUARANTEE BY THE BIDDER TOWARDS CASH HANDLING BY BUSINESS

CORRESPONDENTS:

12.1 The Bank will be providing required cash to the BCs of the bidder for daily transaction.

Towards this cash handling the Bidder should provide security in the form of Bank

Guarantee of Rs 10 Lakhs at the beginning as per the format to be prescribed by the Bank.

The Bank Guarantee should be minimum of Rs 10 Lakhs and it should be @ 20% of daily

average cash transaction handled by BCs of the Bidder. At the first instance, Bank will

review the daily average cash transaction handled by BCs after 6 months from

commencement of the Project and Bidder is required provide additional Bank Guarantee if

any. There after the position will be reviewed every year and Bidder is required to provide

additional Bank Guarantee if required. The Bank Guarantee will be for the period of 5 years

with a claim period of 90 days. The period of Bank Guarantee is extendable if the period of

contract is extended. This is apart from the Performance guarantee and this will not obviate

the need for cash insurance.

12.2 PERFORMANCE GUARANTEE:

12.2.1 Within seven days after the execution of the Contract agreement, the successful bidder

should submit a performance guarantee, as per the format provided by the Bank, equivalent

to 10% of the value of the contract price valid till completion of the project and warranty

period. It should be renewed every year at 10% of the respective years contract value.

12.2.2 The selected bidder shall be responsible for extending the validity date and claim period of

the bank guarantees as and when it is due on account of delay in completion of the project.

12.2.3 In the event of non performance of obligation or failure to meet the terms of the tender, bank

shall be entitled to invoke the performance guarantee before the expiry of validity, if work is

not completed or if the guarantee is not extended. The bank shall notify the select bidder in

writing before invoking the bank guarantee. The proceeds of the guarantee shall be payable

to the bank as compensation for any loss from the selected Bidder‟s failure to complete his

obligations under the contract.

12.2.4 Apart from the above, the Bidder should furnish Bank guarantee for Rs 5 lakh towards

Bid Guarantee amount as stipulated in the RFP.

13 PILOT IMPLEMENTATION:

13.1 Bidder/s have to implement the solution in the pilot six (6) branches of the Bank and

100 accounts to be opened and transact in each branches as per this RFP and come out

with changes / customization which bidder/s has/have to address / resolve / change and

rectify the reported bugs, if any, during the period of Pilot Implementation without any

extra cost to the Bank. All Requirements of the Bank should be complied in Pilot

implementation itself.

13.2 After successful completion of Pilot implementation by Bidder/s and its acceptance by

Bank, the solution has to be rolled out in areas of identified villages / town/cities as per

this RFP.

13.3 Bidder/s to complete entire Pilot Project in a reasonable time not exceeding 30 days

from the date of award of contract.

13.4 All activities such as engaging BCs, customers enrollment, issue of personalized smart

card, customers transaction etc and installations of Hardware/software etc. for FI server

& for BCs, in Pilot implementation should be as per the requirements of RFP.


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14 TERMS OF PAYMENT:

The following terms of payment shall be applicable to this contract.

Deliverables % age of

PAYMENT

STAGES (on completion of the activities)

Smart Cards 90% After Delivery of Personalized Cards to

the Beneficiaries and confirmation from

the Branch

10% After completion of 1 year warranty

period. or on production of Bank

Guarantee for the Warranty period for the

value of such payment.

Enrollment charges Monthly On successful opening of account

confirmation from the branches

Transaction charges Monthly Invoice duly supported by reports

Financial transactions happening will be monitored by the bank to ascertain the

accommodative transactions. No transactions charges will be paid by the bank for such

accommodative transactions.

15 PENALTIES CLAUSE:

Bank will impose the following penalties and the same will be recovered from the bidder

either from his payments or through claims apart from invoking the Bank Gurantees and

right to terminate the contract as per clause 19.6 and 19.15 of RFP.

Sl.

No.

Different

Achievements of

RFP

Maximum

Permissible

Level

Penalty Charges

1 Completion of pilot

implementation as per RFP

To be completed as

per RFP

Rs.2500/- per day or a part there of for

delay beyond 30 days up to total period

of 60 days. Thereafter if the project is

getting delayed beyond reasonable time

bank reserves the right to review and

take appropriate action.

2 Resolve reported issues,

defects, bugs etc., at

Interface/FI Server.

To be resolved Rs.2500/- per hour would be charged

beyond required MTTR (Mean Time To

restore) up to 48 hours. Thereafter if the

project is getting delayed beyond

reasonable time bank reserves the right

to review and take appropriate action.


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16. UPTIME:

The entire solution is required to be up and running for 99.5% on a monthly basis barring

scheduled and mutually agreed upon downtime for maintenance or Training purposes. That is,

the Services of the complete Solution should be available to the Bank through all days.

The percentage of uptime will be calculated based on the time taken to repair & rectify the fault

from the time the disruption of services till it get resolved / rectified satisfactorily.

(Total contracted minutes in a month-downtime minutes within contracted minutes)

----------------------------------------------------------------------------------------X100 Total contracted minutes in a month (A month is taken as 30 days)

If the bidder fails to maintain guaranteed uptime of 99.5% on monthly basis, Bank shall impose

penalty as mentioned below.

DURATION OF FAILURE PENALTY

100% - 99.5% - UPTO 173 minutes NIL

99.5% - 99% - UPTO 432 minutes Rs.5,000/- for every hour or

Part thereof

Below 99% - Beyond 432 minutes Rs.10,000/- for every hour or

Part thereof

If the uptime is below 98%, the Bank shall have full right to terminate the contract under this RFP.

The bidder shall provide a report on monthly basis on the uptime

17 TIME SCHEDULE

Time is the essence of the Contract. Time Period comprehensive Management information

System (MIS) reports as required by banking & various statutory authorities.

1 Pilot implementation of

solution(installation,

commissioning, interface)

Within 30 days from the date of placing order.

2 Appointment of BC/CSPs Within 15 days form the date of placing

individual order in order in all identified villages.

3 Roll out of Solution for all

entrusted villages.

Within 60 days from the date of work order

4

Enrollment of accounts &

issue of 1 lac smart cards

To be completed before 10th March 2011

A detailed Schedule will be drawn up by the Bank and shared with selected bidder at the time

of placing order.

The delay in supply of the above items will result in imposing penalty as per clause 15.


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18 BIDDER’S RESPONSE AND OPENING OF BIDS

18.1 GENERAL TERMS OF BID SUBMISSION

18.1.1 The bidder must use the entire information furnished in the RFP including scope,

detailed requirements of architecture of application, hardware, functional and

technical specifications, other annexure and other terms and conditions, bill of

materials while submitting the response.

18.1.2 All responses should be in English language. All responses by the Bidders to this RFP

document shall be binding on such Bidders for a period of 180 days from the date of

opening the Technical Bid.

18.1.3 All responses including commercial and technical bids would be deemed to be

irrevocable offers / proposals from the Bidders and may, if accepted by Bank, form

part of the final contract between Bank and Bidder.

18.1.4 Bidders are advised to attach a letter from an authorized signatory attesting the

veracity of the information provided in the response.

18.1.5 Any technical or commercial bid submitted cannot be withdrawn / modified after the

closing date and time for submission of the bid offers unless specifically permitted by

Bank.

18.1.6 Each offer should specify only a single solution which is cost effective and meeting

the tender specifications and it is the responsibility of the Bidder to decide the best of

breed solution.

18.1.7 In the event the Bidder has not quoted for any mandatory or optional items as

required by Bank and forming a part of the RFP document circulated to the Bidders

and responded to by the Bidders, the same shall be deemed to be provided by the

Bidder at no extra cost to Bank.

18.1.8 Bank concludes that everything as mentioned in the RFP documents circulated to the

Bidders and responded by the Bidders have been quoted for by the Bidders and there

shall be no extra cost associated with the same other than the cost quoted by the

Bidder.

18.1.9 In the event, Bank has not asked for the quotes for alternative prices and the Bidder

furnishes the alternative quotes in the Bidder‟s financial bids, the higher of the quotes

shall be taken for evaluation purposes. However, payment by Bank shall be made for

the lowest quote.

18.1.10 All out of pocket expenses, traveling, boarding and lodging expenses for the entire

life of the contract should be a part of the financial bid submitted by the Bidder and

no extra cost shall be payable by Bank. The Bidder cannot take the plea of omitting

any charges or costs and later lodge a claim on Bank for the same.


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18.1.11 The Bidder at no point of time can excuse themselves from any claims by Bank

whatsoever for their deviations in conforming to the terms and conditions, payment

schedules, timeframe for implementation etc. as mentioned in RFP documents.

18.1.12 By submitting a proposal, the Bidder agrees to promptly contract with Bank for any

work awarded to the Bidder.

18.1.13 This RFP or clarifications or writings issued pursuant thereto shall not be construed

as an obligation on the part of Bank to award a purchase contract for any services or

combination of services.

18.1.14 Bank reserves the right to reject any or all bids in full without assigning any reason

whatsoever.

18.1.15 The bidder has to adhere to the time schedule of activities mentioned in the RFP and

no request to change the last date or extend period / time for submission shall be

entertained by Bank. However, bank reserves its right to extend the date/time for

submission of the responses without assigning any reason by notifying in the Website

/ displayed on the Notice Board.

18.1.16 Any additional or different terms and conditions proposed by the Bidder would be

rejected unless expressly assented to, in writing by Bank.

18.1.17 The offers containing erasers or alterations shall not be considered. There should be

no hand-written material, corrections or alterations in the offer. Correct / proper

technical information of the product being offered must be filled in.

18.1.18 Filling up of the information using terms such as „OK‟, „Available‟, „Accepted‟ ,

„Noted‟, „As per brochure‟ etc. is not acceptable to Bank. The Bidder should provide

detailed information wherever applicable.

18.1.19 The response to the bid should not carry any sections like „Clarifications‟, „As orally

told‟, „to be discussed‟, „interpretations‟, „assumptions‟ etc.

18.1.20 To assist in the scrutiny, evaluation and comparison of offers, Bank may, at its

discretion, ask any of Bidders for clarifications to their offer.

18.1.21 Bank reserves the right to separate the scope of hardware supply from the total

contract and procure itself from a suitable Bidder.

18.1.22 The Bidder shall submit a Demand Draft / Pay Order for Rs 10,000/- towards cost of

Bid (non-refundable).

18.1.23 The Bidder shall submit an additional Bank Guarantee for Rs 5,00,000/- (Rupees Five

Lakhs only) towards Bid Guarantee/EMD for 6 months issued by a Public Sector

Bank, as per the format provided for the purpose (Annexure-XVI).

18.2 PREPARATION OF BIDS

18.2.1 The bidder has to submit his response to the bid in English language only.

18.2.2 Technical Bid indicating the response to the technical requirement specifications


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18.2.3 Commercial Bid furnishing all the relevant information as required as per the Bill of

Material.

18.2.4 Submission of Commercial bids both for BC Model-A & BC Model-B is mandatory

to the Bidders. The commercials for both the Models should be submitted in separate

format prescribed in the RFP.

18.2.5 The bidder has to submit his response in hardcopy and softcopy in Microsoft Office

document formats for Technical Bid and Commercial Bid.

18.2.6 The bidder has to keep the Technical and Commercial Bid in two separate sealed

covers marked as „Technical Bid for Implementation of Financial Inclusion Project in

Pragathi Gramin Bank‟ and „Commercial Bid for Implementation of Financial

Inclusion Project in Pragathi Gramin Bank‟.

18.2.7 The Bidder has to keep the Demand Draft for Rs 10,000/- and Bank Guarantee for Rs

5,00,000/-, as mentioned in this RFP, in a separate sealed cover titled “Cost of Bid

and Bid Guarantee”. It should be placed conveniently so that it can be verified prior

to opening of Technical Bids.

18.2.8 Under no circumstances, the Commercial details are to be kept under Technical

portion of the bid. The Bidder has to only enclose MASKED COPY of the

Commercial Bid. Any deviation in this regard shall make the bid invalid for further

evaluation.

18.2.9 The Bidder is advised to submit one Master Envelope containing three separate

envelopes as mentioned below:

18.2.10 First sub envelope should have the hard copy and CD for Technical Bid. A masked

copy of the entire Price Bid and Bill of Materials after masking the prices should

accompany the Technical Proposal. It should be ensured that no pricing information

is a part of the Technical Bid. This is required only to ensure that the Commercial

Bids are submitted as per the required formats.

18.2.11 Second sub envelope should have the hard copy and CD for Commercial Bid. [

18.3 CONTACT DETAILS FOR SUBMITTING THE PROPOSAL:

Primary Contact Details:* Secondary Contact details:

Sri S.Vithal Rao Sri A Omkar

Senior Manager Senior Manager (FI & MB),

FI Division, Canara Bank, DIT Wing,

Pragathi Gramin Bank 14 MG Road, Bangalore – 560001

Head Office, Bellary (Karnataka) Tel No.: 080-25329102

Phone: 08392-256674, 257250 (for venue , timing and

Email: [email protected] submission of Bids only)

*(For all the queries relating to RFP)

mailto:[email protected]


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18.4 PROPOSAL FORMAT DETAILS

18.4.1 The Bidder‟s proposal should effectively communicate their solution and be

presented in the specified formats for Bank to assess alternatives. The proposal

should contain an Executive Summary.

18.4.2 The Bidder needs to provide an undertaking on the veracity of soft copy submitted

with the Hard copy submitted in the format “Technical Bid Annexure IX”

18.4.3 The Executive Summary should provide an overview of the Bidder‟s organization,

Bidder‟s products and services provided as part of the procurement. A brief

description of the unique qualifications of the Bidder should then be provided

followed by a summary on capabilities and past experience in implementing such

projects.

18.4.4 The proposal should explain in detail with regards to the consortium Bidders in case

the offer is a consortium bid. A summary of the activities of each Bidder and the

relevant expertise is to be enclosed as a part of the Technical.

18.4.5 All pages of the Bid including Brochures are to be numbered as Page – of ---- total

pages. The numbering should be done separately for Technical and Commercial bid,

but not section wise

18.4.6 The bidder needs to follow the Terms and conditions envisaged in the RFP without

deviation in general and should submit an undertaking to the said effect as per the

format in annexure “Technical Bid Form in Annexure X”

18.4.7 All the bidders forming the consortium need to provide a confirmation of abiding by

the Terms and conditions envisaged in this RFP and should provide an undertaking to

the said effect individually as per format in annexure “Technical Bid Form in

Annexure XI”

18.5 TECHNICAL BID

18.5.1 Against each of the technical requirements, bidder‟s response is required to be noted

for each of the sections as described under specific sections.

18.5.2 The bidder must provide his response to technical requirements in MS Office Suite of

Products form in a structured and neat form.

18.5.3 Under no circumstances, the bidder while giving their response should change the

information furnished by Bank under Technical and other requirements in any of the

columns.

18.5.4 The commercial bid should not contradict or deviate from the technical bid in any

manner.


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18.6 CLARIFICATIONS TO RFP AND PRE-BID MEETING

18.6.1 The bidder should carefully examine and understand the specifications/conditions of

the RFP and may seek clarifications, if required, for implementing the Financial

Inclusion Project in total.

18.6.2 The bidder in all such cases must seek clarification in writing in the same serial order

of that of the RFP by mentioning the relevant page number and clause number in the

RFP. All clarification/queries on the bid are to be sought in writing at least two days

in advance to the pre-bid meeting. The pre bid query should be as per the Annexure -

XVIII. All communications are to be addressed as per the address given above.

18.6.3 Further bidder shall indicate the names of the participants for the pre-Bid meeting by

e-mail to reach us at least 2 days prior to Pre-bid meeting. A maximum of two

participants from each bidder will be permitted to participate/ attend the Pre-Bid

Meeting. Bank shall hold a Pre-Bid meeting at “Canara Bank DIT Wing, Second

floor, Naveen Complex, 14 MG Road, Bangalore – 560001

18.6.4 To clarify all the queries raised by the bidders. No request for change in date, time

and venue shall be entertained by Bank and no individual consultations other than the

pre-bid meeting shall be entertained.

18.6.5 No additional clarifications other than the clarifications asked for in advance shall be

entertained.

18.6.6 The clarifications of Bank including the queries raised by bidders made available on

the Bank‟s website.

18.6.7 All the clarifications given by Bank shall become part and parcel of the RFP and

bidders should give their responses duly taking into consideration the clarification

given by Bank.

18.6.8 Bank may modify the RFP by issuing addenda for any reason at any time prior to the

final date of submission of RFP. All modifications shall be notified on the website of

the Bank and it shall be binding on them.

18.6.9 Bank reserves the right to alter the requirements specified in the RFP for any reason

prior to the last date of submission of RFP. Bank also reserves the right to delete one

or more items from the list of items specified duly notifying the changes on the

Bank‟s website.

18.7 COMMERCIAL BID

18.7.1 The commercial bid should be submitted in a separate sealed envelope. Cost figures

should be presented separately for each of the bill of materials mentioned as per

Commercial Bid in Annexure – XIII & XIV (For Model-A & Model-B respectively).

18.7.2 Submission of Commercial bids both for BC Model-A & BC Model-B is mandatory

to the Bidders. The commercials for both the Models should be submitted in separate

format as prescribed in the RFP.


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18.7.3 The Bidder to quote in Indian Rupees only and bids in currencies other than INR

would not be considered.

18.7.4 The prices and other terms offered by Bidders must be in force for a period of 180

days from the date of opening of the commercial bid.

18.7.5 All costs should be inclusive of all taxes, duties, charges and levies of State or Central

Governments, as applicable, at the date of signing the Agreement and subject to

deduction of all statutory deductions applicable, if any. The benefits realized by

Bidder due to lower rates of taxes, duties, charges and levies shall be passed on by

Bidder to Bank. Any additional expenses incurred by the bidder due to increase in

taxation, duties, charges and levies; same shall be reimbursed to the bidder on

production of satisfactory proof. Further any change in the applicable tax rate, the

benefit or burden shall be passed on to the Bank.

18.7.6 The Bidder has to include all costs like Travel, Lodging & Boarding, Local Travel

expenses, etc incurred during the implementation as a part of the Bill of Materials and

Bank will not bear any additional costs on these.

18.7.7 The prices quoted by the Bidders shall include all costs such as Taxes, Excise,

Custom Duties, VAT, Levies, Cess, Installation, Insurance, etc. that need to be

incurred.

18.7.8 The prices quoted shall include transportation to the respective sites and insurance till

completion of the acceptance process by Bank. The prices should include the charges

payable for carrying out any modification, changes / upgrades to the Financial

Inclusion Project or other equipment or software that is required to be made in order

to comply with any statutory or regulatory requirements.

18.7.9 The Bidder is required to guarantee that exchange rate fluctuations, changes in import

duty and other taxes, inflationary pressures over the contract period etc. shall not

affect the Rupee value of the commercial bid, over the validity period of the bid.

18.7.10 The price bid should include all the costs for the industry wide changes to the solution

or changes that may be required due to a change in law arising during the subsistence

of the agreement and the Bidder should provide with the details of all such items

considered in the RFP.

18.7.11 Terms of payment indicated in the RFP shall be final and binding on the Bidder and

no alternate terms and conditions proposed in the RFP shall be considered.

18.7.12 As the Total cost of the Solution is required, the Bidder should include costs for

Facility Management and Maintenance in the Bill of Materials.

18.7.13 Proposals should identify all costs for software, hardware, connectivity and facility

management based on a five years useful life. This includes implementation costs,

such as installation, training, testing, conversion and ongoing costs like cost of

upgrades, preventative maintenance and support.

18.7.14 It is expected that the Bidder shall provide a detailed price breakdown for the

proposed system. Items that are not produced directly by the Bidder should be


PGB/FI-RFP/01/2010-11 of 80

indicated as such. Prices shall be inclusive of all and any costs to be charged, such as

cost of installation, training, maintenance, documentation, software updates /

upgrades, supplies, tools, duties, taxes, and any other element that could be

interpreted as the real cost of procurement and any on-going expenses due to the

Bidder.

18.7.15 The bidder is required to prepare detailed Bill of Materials for implementation of the

project and incorporate the same as per the formats of Commercial Bid enclosed

(Annexure XIII & XIV).

18.7.16 The Models that are proposed/ marked for withdrawal from the market and the

models under quality testing should not be offered. Bank shall reserve right to ask for

PROOF OF CONCEPT on working of the newly introduced Models in the market, if

offered, on the agreed terms & conditions before considering for empanelment.

18.8 ORGANIZATION OF BID

18.8.1 The technical bid should be submitted in a sealed cover containing the following:

18.8.1.1 Covering letter duly signed by the authorized signatory

18.8.1.2 Executive Summary

18.8.1.3 Table of contents

18.8.1.4 Letter with details of authorized signatories who can represent the bidders

18.8.1.5 Consortium details

18.8.1.6 Letter from consortium members

18.8.1.7 Bidders response to technical requirements

18.8.1.8 Technical Bill of Materials without any commercial details (Masked Bill of

Material)

18.8.1.9 All Formats required to be submitted duly filled in

18.8.1.10 Soft copy of the technical bid in formats supported by Microsoft Office suite of

products

18.8.2 The commercial bid should be submitted in a sealed cover containing the following

18.8.2.1 Covering letter duly signed by the authorized signatory

18.8.2.2 Table of contents

18.8.2.3 Bill of Material along with the costs

18.8.2.4 Soft copy of the commercial bid in formats supported by Microsoft Office suite of

products as per the format

18.9 OPENING OF THE BIDS

18.9.1 Opening of technical bids: The technical bid shall be opened in the presence of

bidders‟ representatives at Department of Information Technology, Canara Bank, DIT


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Wing, Second floor, Naveen Complex, 14 MG Road, Bangalore – 560001. The

bidders‟ representatives should present themselves at the above mentioned venue

along with the authorization letter.

18.9.2 No further notice shall be issued to the bidders with regard to the opening of the bids.

For any reasons, if Bank does not function on the date of scheduled opening, the bids

shall be opened on the next working day at the same time at the same venue.

18.9.3 Bank reserves its right to change the date and time for opening the technical bid duly

publishing the information on the bank‟s website.

18.9.4 All the authorized representatives of the bidders present at the time of opening should

sign in a register evidencing their attendance and also on the covers of the bids

18.10 EXAMINATION OF THE BIDS

18.10.1 Bank shall do a preliminary examination of all the bids so as to ensure that they are

complete in all respects and all documents have been properly signed.

18.10.2 Bank shall scrutinize the technical offers to determine whether they are complete,

whether any errors have been made in the offer, whether required technical

documentation has been enclosed, whether the documents have been properly signed

etc.

18.10.3 Bank may at its discretion call for clarifications from all / any of the Bidders and bank

reserves its right to disqualify the Bidder whose clarification is found not suitable to

the proposed project.

18.10.4 Bank shall also verify whether the bidder has responded in full to the RFP or not.

18.11 EVALUATION METHODOLOGY

18.11.1 The Bank will adopt following methodology evolved for evaluation of technical bid.

The objective is to facilitate the selection of most effective solution over a period of 5

years that appropriately meets the business requirements of the Bank. The bid would

be first evaluated on technical soundness and then on the financials.

The technical soundness would be rated on a total score of 500.

Sl No. Technical Bid evaluation Score

1 Relevance of Credentials 50

2 Technical Specification 100

3 Product Demo 100

4 BCs Management 100

5 Site visits 150

Total 500


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The bidder needs to achieve the cutoff score of 375 marks (75%) out of 500 in the

technical bid evaluation stage to be qualified for commercial bid opening. Only those

bidders who achieve the specified cutoff scores would be short listed for commercial

bid evaluation.

The marks secured by each bidder will be considered only for technical qualifying of

the bidder for opening of the commercial bid and the ranking will not have bearing on

the final selection of the bidder.

18.11.2 Bank will prepare a list of empanelled Bidders based on evaluation by a Committee

of the Bank. The short-listing will be based on various parameters such as compliance

with pre-qualification criteria as per terms of the tender documents, functional fit of

the solution to the requirements of the Bank, responses, past experience, site-visits (if

deemed necessary), referrals, presentations, technology, etc in addition to technical

compliance of the solution offered by the bidder vis-à-vis the technical specifications

given in the technical bid forms.

18.11.3 Prior to detailed evaluation Bank will determine the substantial responsiveness of

each Bid to the Bidding Document. Substantial responsiveness means that bid

conforms to all terms and conditions of the Pre-Qualification Criteria and Bidding

Document without any material deviations.

18.11.4 The Bank may call for any clarifications/ additional particulars required, if any, on

the technical bids submitted by the bidder. The bidder has to submit the clarifications/

additional particulars in writing within the specified date and time. The bidder‟s offer

may be disqualified, if the clarifications/ additional particulars sought are not

submitted within the specified date and time.

18.11.5 Bank reserves right to call for a presentation on the features etc., from the short listed

Bidders based on the technical bids submitted to make an evaluation. The commercial

bids of the technically qualified bidders only will be considered for commercial bid

evaluation.

18.11.6 Bank reserves the right to evaluate the bids on technical parameters including

possible visit to inspect live sites of the Bidder and witness demos of the system and

verify functionalities, response times, etc.

18.11.7 Technical evaluation will take into consideration the capability of the bidder to

implement the proposed solution.

18.11.8 Only those bidders whose Technical bids have been found substantially responsive

would be intimated by the Bank.

18.11.9 Normalisation of Bids: The Bank will go through a process of technical evaluation

of the Bids to the extent possible and feasible to ensure that, vendors are more or less

on the same technical ground. After the normalization process, if the bank feels that

any of the bids needs to be normalized and that such normalization has a bearing on

the price bids; the Bank may at its discretion ask all the technically short-listed

vendors to resubmit the technical and commercial bids once again for scrutiny the


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Bank can repeat this normalization process at every stage of technical submission or

till the bank is satisfied. The bidders agree that they have no reservation or objection

to the normalization process and all the technically short listed bidders will, by

responding to this RFP, agree to participate in the normalization process and extend

their cooperation during this process. The bidders, by submitting response to this

RFP, agree to the process and conditions of normalization process.

18.11.10 Bill of Materials (masked price schedule) submitted along with Technical Bid will be

first evaluated and if the bank, during the evaluation, deems it fit, may request the

bidder to revise the bill of materials submitted at the same price originally quoted in

the pricing schedule. If the bidder does not agree to revise the same within 5 days

from the date of notification to revise, the price bid submitted will be considered non-

responsive and accordingly rejected.

18.11.11 Evaluation criteria, evaluation of the responses to the RFP and subsequent selection

of the successful bidder will be entirely at Bank‟s discretion. Its decision shall be

final and no correspondence about the decision shall be entertained.

18.11.12 Bidders are required to prepare for making necessary presentations as a part of the

final evaluation in accordance with the responses given for the identified

requirements any time after the last date for submission of bids.

18.11.13 Bidders are further required to be prepared to demonstrate the proposed solution by

arranging for a product walk-through at their own installations/principals/R&D labs

duly meeting the specific requirements / issues raised by Bank. Bank may at its

discretion as a part of the evaluation of the technical bid may request either all

bidders or any of them to arrange for this demonstration of their product more than

once if felt necessary before opening commercial bid.

18.11.14 All expenses incurred in connection with the above shall be borne by the bidder.

18.11.15 Setting of evaluation criteria for product demonstrations shall be entirely at the

discretion of Bank. The decision of Bank in this regard shall be final and in this

regard, no correspondence shall be entertained.

18.11.16 Bidders should arrange for visits to the reference sites wherein the product is

successfully implemented by them.

18.11.17 The bank may use the services of external consultants for bid evaluation, if required.

18.12 OPENING OF COMMERCIAL BID AND EVALUATION

18.12.1 Commercial bid shall be opened for the qualified bidders who are short listed after

technical evaluation. The date, time and venue of opening the commercial bids shall

be informed to the qualified bidders.

18.12.2 Commercial bids shall be opened in the presence of authorized representatives of the

qualified bidders and the commercial values quoted by each bidder shall be read out.

All the authorized representatives of the bidders should sign in a register so as to

confirm their attendance.


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18.12.3 Before opening of the commercial bid the short listed bidders will be required to

submit an undertaking as per the format provided in the Annexure - XIX

18.12.4 Commercial bid valuation shall be considered as below in case of any kind of

discrepancy:

18.12.5 If there is a discrepancy between words and figures, the amount in words shall prevail

18.12.6 If there is discrepancy between unit price and total price, the unit price shall prevail

18.12.7 If there is a discrepancy in the total, the correct total shall be arrived at by Bank

18.12.8 In case the bidder does not accept the correction of the errors as stated above, the bid

shall be rejected.

18.12.9 The bank will evaluate and compare the Price Bids, of all the technically short-listed

Bidders.

18.12.10 L1 will be decided on the basis of sum total of the price quoted in the Price Schedule.

18.12.11 The Bank reserves the right to decide L1 for Model-A and Model-B

separately. Based on the evaluat ion of commercial bid under Model-A and

Model-B, successful Bidders will be announced separately.

18.13 SPLITTING OF PURCHASE ORDERS:

Further, Bank reserves its right to split its purchase order on multiple Bidders qualifying in

Technical evaluation for their multiple FIS in identified areas of different branches / villages

/ districts and who agree to match the L1 Bidders Price, in a fair and transparent manner as

under.

18.13.1 Bank shall decide the number of other Bidders in addition to L1 Bidder amongst

whom the purchase order would be split. (not more than 3 bidders for Smart card

based financial inclusion solution).

18.13.2 Price ranking as L1, L2, L3 and so on based on Bidders price bid will be done.

18.13.3 Bidders other than L1 bidder, in the order of their price bid ranking as L2, L3, L4, L5

& so on will be offered to match L1 will be given to L2 and then L3 Bidders. In case

L2 and/or L3 do not agree to match L1 price, then the offer will be extended to L4,

L5 and other qualifying Bidders.

18.13.4 Norms for distribution of purchase order based on volume of number of customer

enrolments:

a) In case of selection of 3 Bidders, minimum 40% to L1 and remaining will be

distributed amongst others ensuring their individual order do not exceed L1

Bidder order.

b) In case of selection of 2 Bidders, minimum 60% to L1 and remaining to other

Bidder.

c) In case of one Bidder, 100% to L1.


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18.13.5 Normally, one district will not be given to multiple Bidders. Different Bidders will

get different districts/villages for implementation of FIS as per the Banks‟

requirements. No Bidder can request for any particular districts/ villages. However,

Bank reserves the right to give cluster of villages within a districts to different

Bidders at its sole discretion.

18.13.6 This does not give any right to L2, L3, L4, L5 and other Bidders to demand the

distribution of purchase order.

18.13.7 Though the Bidder might have considered entire Financial Inclusion solution for

bidding and quoting his competitive price for L1, actual work order may be at a lower

scale. The Bank‟s decision in this regard will be final and binding on Bidders.

18.13.8 The Bank reserves the right to place order on L1 bidder only irrespective of the fact

whether the other bidders i.e. L2, L3 and soon match their price with L1 bidder or

not. However, the Bank also reserves the right to reject L1 and/or any bid at any point

of time without assigning any reasons.

18.14 AWARDING OF CONTRACT

18.14.1 The Bidder whose commercial bid is accepted will be referred to as selected Bidder

and Bank will notify the name of the selected Bidder by display in the Notice board

of Bank

18.14.2 The contract shall, be awarded and purchase order shall be placed on selected Bidder.

Bank releases purchase order either in Full or in part or place more than one order

towards the contract based on project plan

18.14.3 The selected bidder shall submit the acceptance of purchase order with in seven days

from the date of receipt of purchase order. No conditional or qualified acceptance

shall be permitted. The effective date for start of provisional contract with the

Selected Bidder shall be the date of acceptance of purchase order by the bidder.

18.14.4 Bank reserves its right to consider at its sole discretion the late acceptance of

purchase order by selected bidder

18.14.5 On failure of the selected bidder to accept purchase order with in stipulated time,

Bank shall be at liberty to proceed with procurement from the other technically

qualified Bidders with in the purview of the same RFP by calling for fresh

commercial quotes either considering existing commercial quotes or fresh

commercial quote. The initially selected bidder stands disqualified for further

participation in the subject bid

18.14.6 Within 21 days from the date of acceptance of purchase order by the selected bidder,

the bidder shall sign a stamped “Contract agreement” referred to as Contract in this

RFP, with Bank, at the time, place and in the format prescribed by Bank. All stamp

duty charges applicable on the agreement shall be borne by the selected bidder

18.14.7 Within seven days after the execution of the Contract agreement, the selected bidder

must submit a performance guarantee, as per the format provided by the Bank,

equivalent to 10% of the value of the contract price valid till completion of the project

and warranty period


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18.14.8 Bank at its discretion may cancel purchase order placed on the selected bidder

without giving any notice in the event of bidder‟s failure to submit the guarantee with

in stipulated period from the date of execution of the contract

18.14.9 The selected bidder shall be responsible for extending the validity date and claim

period of all Bank guarantees as and when it is due on account of incompletion of the

Project and warranty period. Bank shall invoke the guarantee before expiry of the

validity, in case the work is not completed and the guarantee is not extended

accordingly. Bank shall notify the selected bidder in writing before invoking the

guarantee.

18.14.10 The bid guarantee will be discharged by Bank and returned to the selected bidder in

Ninety days after the selected bidder„s performance obligations under the contract are

completed and accepted by Bank.

18.14.11 PERIOD OF CONTRACT :

The period of contract shall initially be for a period of 5 (five) years from date of

acceptance. Bank also reserves its right to renew the contract after 5 years on the

same terms and conditions or mutually agreed terms and conditions between the Bank

and the Selected Bidder. In case of shifting of the services to a new Service Provider,

due to deficiency in the services extended by Selected Bidder during the period of the

contract or due to policy changes, which warrants switching over to new solution, the

existing Selected Bidder shall extend all required support for smooth switch over.

The project is to be implemented as per Financial Inclusion Plan detailed in the RFP.

However, the bidder should ensure that BC services for enrolment and transactions

etc should be provided for 5 years from the date of signing of the contract. The assets

deployed on the project will remain with the vendor.

19 OTHER TERMS AND CONDITIONS

19.1 TERMS AND CONDITIONS OF THE PROPOSAL

19.1.1 Bank invites the Bidder‟s attention to the following terms and conditions which

underline this RFP and which provide a statement of understanding between the

interested parties.

19.1.2 Bank reserves the right to accept or reject any and all proposals, to revise the RFP, to

request one or more re-submissions or clarifications from one or more Bidders, or to

cancel the process in part or whole. No Bidder is obligated to respond to or to continue

to respond to the RFP. Additionally, Bank reserves the right to alter the specifications,

in part or whole, during the RFP process, and without re-issuing the RFP. Each party

shall be entirely responsible for its own costs and expenses that are incurred while

participating in the RFP and subsequent presentations and contract negotiation

processes.

19.1.3 The Bank may revise any part of the RFP, by providing a written addendum on Bank‟s

website till the award of the contract. The Bank reserves the right to issue revisions to

this RFP at any time before the award date


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19.1.4 The RFP and all supporting documentation/templates are the sole property of Pragathi

Gramin Bank and shall NOT be redistributed without the prior written consent of

Pragathi Gramin Bank. Violation of this would be a breach of trust and may, inter-alia

cause the Bidder to be irrevocably disqualified. The aforementioned material must be

returned to Pragathi Gramin Bank while submitting the Bidder proposal, or upon

request. In case the Bidder is not interested in responding to the RFP, the RFP

documents and any annexures must be returned to Pragathi Gramin Bank immediately.

19.1.5 The proposal and all supporting documentation submitted by the Bidder shall become

the property of Pragathi Gramin Bank.

19.1.6 By submitting a signed bid, the Bidder certifies that:

19.1.6.1 The Bidder has arrived at the prices in its bid without agreement with any other

bidder of this RFP for the purpose of restricting competition.

19.1.6.2 The prices in the bid have not been disclosed and shall not be disclosed to any

other bidder of this RFP.

19.1.6.3 No attempt by the Bidder to induce any other bidder to submit or not to submit a

bid for restricting competition has occurred.

19.1.7 Each Bidder must indicate whether or not they have any actual or potential conflict of

interest related to contracting services with Pragathi Gramin Bank. In case such

conflicts of interest do arise, the Bidder must indicate the manner is which such

conflicts can be resolved.

19.1.8 Pragathi Gramin Bank would enter into a contract with Primary Bidder who shall be

responsible for delivery and overall implementation and provide a working solution of

all Software, Hardware, human resources, etc and shall be responsible to coordinate

with other associated Bidders and submit both Technical and Commercial Proposals.

19.1.9 The Bank is not responsible for any assumptions or judgments made by the Bidders for

arriving at any type of sizing or costing. The Bank at all times will benchmark the

performance of the Bidder to the RFP documents circulated to the Bidders and the

expected service levels as mentioned in these documents. In the event of any deviations

from the requirements of these documents, the Bidder must make good the same at no

extra costs to the Bank, in order to achieve the desired service levels as well as meeting

the requirements of these documents. The Bank shall not be responsible for any

assumptions made by the Bidder.

19.1.10 The Bidder represents and acknowledges to the Bank that it possesses necessary

experience, expertise and ability to undertake and fulfil its obligations, under all phases

involved in the performance of the provisions of this RFP. The Bidder represents that

all software and hardware to be supplied in response to this RFP shall meet the

proposed Bidder solution requirements. The Bidder shall be required to independently

arrive at a solution, which is suitable for the Bank, after taking into consideration the

effort estimated for implementation of the same. If any services, functions or

responsibilities not specifically described in this RFP are an inherent, necessary or


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customary part of the deliverables or services and are required for proper performance

or provision of the deliverables or services in accordance with this RFP, they shall be

deemed to be included within the scope of the deliverables or services, as if such

services, functions or responsibilities were specifically required and described in this

RFP and shall be provided by the Bidder at no additional cost to the Bank. The Bidder

also acknowledges that the Bank relies on this statement of fact, therefore neither

accepting responsibility for, nor relieving the Bidder of responsibility for the

performance of all provisions and terms and conditions of this RFP, the Bank expects

the Bidder to fulfill all the terms and conditions of this RFP.

19.1.11 The Bank shall be under no obligation to accept the lowest or any other offer received

in response to this tender notice and shall be entitled to reject any or all offers including

those received late or incomplete offers without assigning any reason whatsoever. The

Bank reserves the right to make any changes in the terms and conditions of purchase.

The Bank will not be obliged to meet and have discussions with any Bidder, and / or to

listen to any representations.

19.1.12 The Bank reserves the right to alter the requirements specified in the tender. The Bank

also reserves the right to delete one or more items from the list of items specified in the

tender. The bank will publish on its Website about changes, if any.

19.1.13 If required by the Bank, Bidders should provide complete details of any subcontractor/s

used for the purpose of this engagement. It is clarified that notwithstanding the use of

sub contractors by the Bidder, the Bidder shall be solely responsible for performance of

all obligations under the RFP irrespective of the failure or inability of the subcontractor

chosen by the Bidder to perform its obligations. The Bidder shall also have the

responsibility for payment of all dues and contributions, as applicable, towards

statutory benefits for its employees and sub-contractors.

19.1.14 The Bidder is responsible for managing the activities of its personnel or the personnel

of its subcontractors/franchisees and will be accountable for both. The Bidder shall be

vicariously liable for any acts, deeds or things done by their employees, agents,

contractors, subcontractors etc. which is outside the scope of power vested or

instructions issued by the Bank. Bidder shall be the principal employer of the

employees, agents, contractors, subcontractors etc. engaged by Bidder and shall be

vicariously liable for all the acts, deeds or things, whether the same is within the scope

of power or outside the scope of power, vested under the purchase contract to be issued

for this tender. No right of any employment shall accrue or arise, by virtue of

engagement of employees, agents, contractors, subcontractors etc. by the Bidder, for

any assignment under the purchase contract to be issued for this tender. All

remuneration, claims, wages, dues etc. of such employees, agents, contractors,

subcontractors etc. of Bidder shall be paid by Bidder alone and the Bank shall not have

any direct or indirect liability or obligation, to pay any charges, claims or wages of any

of Bidder's employee, agents, contractors, and subcontractors. The Bidder shall hold the

Bank, its successors, Assignees and Administrators fully indemnified and harmless

against loss or liability, claims actions or proceedings, if any, that may arise from


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whatsoever nature caused to the Bank through the action of its employees, agents,

contractors, subcontractors etc. However, the Bidder would be given an opportunity to

be heard by the Bank prior to making of a decision in respect of such loss or damage.

19.1.15 The Bank shall inform the Bidder all breaches and claims of indemnification and shall

grant the Bidder sole authority to defend, manage, negotiate or settle such claims; and

make available all reasonable assistance in defending the claims (at the expense of the

Bidder). The written demand by the Bank as to the loss / damages mentioned above

shall be final, conclusive and binding on the Bidder and Bidder shall be liable to pay on

demand the actual amount of such loss / damages caused to the Bank.

19.2 RIGHT TO ALTER QUANTITIES BY THE BANK

19.2.1 The Bank reserves the right to alter the requirements specified in the tenders. The bank

also reserves the right to delete one or more items from the list of items specified in the

tender.

19.3 INTELLECTUAL PROPERTY RIGHTS

19.3.1 Bidder warrants that the Inputs provided shall not infringe upon any third party

intellectual property rights, including copyrights, patents and other intellectual property

rights of any nature whatsoever. Bidder warrants that the Deliverables shall not infringe

upon any third party intellectual property rights, including copyrights, patents and other

intellectual property rights of any nature whatsoever. The Bidder should ensure that the

Hardware, Application software, operating systems supplied to Bank shall not infringe

the third party intellectual property rights, if any. The Bidder has to ensure that third

party rights are not infringed even in case of equipment / software supplied on behalf of

consortium as Bidder

19.3.2 In the event that the Deliverables become the subject of a claim of violation or

infringement of a third party's intellectual property rights, Bidder shall, at its choice and

expense: (a) procure for Bank the right to continue to use such Deliverables; (b) replace

or modify such Deliverables to make them non-infringing, provided that the same

function is performed by the replacement or modified Deliverables as the infringing

Deliverables; or (c) if the rights to use cannot be procured or the Deliverables cannot be

replaced or modified, accept the return of the Deliverables and reimburse bank for any

amounts paid to Bidder for such Deliverables, along with the replacement costs

incurred by Bank for procuring an equivalent equipment in addition to the penalties

levied by Bank . However Bank shall not bear any kind of expense, charge, fees or any

kind of costs in this regard. Notwithstanding the remedies contained herein, the Bidder

shall be responsible for payment of penalties in case service levels are not met because

of inability of the bank to use the proposed solution

19.3.3 The indemnification obligations stated in this clause apply only in the event that the

Indemnified Party provides the Indemnifying Party prompt written notice of such

claims; grants the Indemnifying Party sole authority to defend, manage, negotiate or


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settle such claims; and makes available all reasonable assistance in defending the

claims (at the expense of the Indemnifying Party). Notwithstanding the foregoing,

neither party is authorized to agree to any settlement or compromise or the like which

would require that the Indemnified Party make any payment or bear any other

substantive obligation without the prior written consent of the Indemnified Party. The

indemnification obligations stated in this clause reflect the entire liability of the parties

for the matters addressed thereby.

19.3.4 Bidder acknowledges that business logics, work flows, delegation and decision making

processes of Bank are of business sensitive nature and hence shall not be referred to

other clients, agents or distributors of the software

19.3.5 The Bidder shall ensure that the software provided meets all the technical requirements

as envisaged in the scope and annexure of the RFP. The Bidder is required to customize

the software as per bank requirement either at Bank‟s site or at off site.

19.3.6 The Bidder shall install the equipment and commission the software for customization

and user acceptance test at the Bidder‟s own cost as per the accepted time schedules.

The Bidder is liable for penalties levied by Bank for any deviation in this regard. The

Bidder shall provide for all tools, testing instruments, drivers, consumables required to

install, customize, and test the software without any further charge, expense and cost to

Bank

19.3.7 The Bidder shall be responsible for delivery, installation, implementation and roll out

of all the solutions required as per the RFP with in the accepted time schedule

19.3.8 The project shall be deemed as incomplete in case the desired objectives of the

Financial Inclusion project as mentioned in the scope of the project are not met and in

case the system is unable to facilitate the Financial Inclusion processes duly supported

by various requirements as envisaged in the RFP.

19.4 REPRESENTATIONS AND WARRANTIES

19.4.1 The Bidder warrants that they have obtained all necessary corporate approvals to enter

into an Agreement and that no consent, approval, or withholding of objection is

required from any governmental authority with respect to the entering into or the

performance of this project. The bidder further warrants that they are under no

obligation or restriction, nor shall they assume any such obligation or restriction, that

would in any way interfere or conflict with, or that would present a conflict of interest

concerning, any obligations under this project .

19.4.2 Bidder warrants that it shall perform the Services in a professional and workman like

manner and materially in accordance with the applicable specifications in the RFP.

19.4.3 The Bidder represents that it is duly incorporated, validly existing and in good standing

under as per the laws of the state in which such Party is incorporated.

19.4.4 The Bidder represents that it has the corporate power and authority to enter into

Agreements and perform its obligations thereunder. The execution, delivery and


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performance of terms and conditions under Agreements by such Party and the

performance of its obligations thereunder are duly authorized and approved by all

necessary action and no other action on the part of such Party is necessary to authorize

the execution, delivery and performance under an Agreement.

19.4.5 The Bidder represents that the submission of responses to the RFP execution, delivery

and performance under an Agreement entered in case the Bidder is selected:

19.4.6 Will not violate or contravene any provision of its documents of incorporation;

19.4.7 Will not violate or contravene any law, statute, rule, regulation, licensing requirement,

order, writ, injunction or decree of any court, governmental instrumentality or other

regulatory, governmental or public body, agency or authority by which it is bound or by

which any of its properties or assets are bound;

19.4.8 Except to the extent that the same have been duly and properly completed or obtained,

will not require any filing with, or permit, consent or approval of or license from, or the

giving of any notice to, any court, governmental instrumentality or other regulatory,

governmental or public body, agency or authority, joint venture party, or any other

entity or person whatsoever;

19.4.9 To the best of its knowledge, after reasonable investigation, no representation or

warranty by such Party in this Agreement, and no document furnished or to be

furnished to the other Party to this Agreement, or in connection herewith or with the

transactions contemplated hereby, contains or will contain any untrue or misleading

statement or omits or will omit any fact necessary to make the statements contained

herein or therein, in light of the circumstances under which made, not misleading.

There have been no events or transactions, or facts or information which has come to,

or upon reasonable diligence, should have come to the attention of such Party and

which have not been disclosed herein or in a schedule hereto, having a direct impact on

the transactions contemplated hereunder.

19.5 COMPLIANCE WITH LAWS

19.5.1 The Bidder shall undertake to observe , adhere to, abide by, comply with and notify

Bank about all laws in force or as are made applicable in future, pertaining to or

applicable to them , their business , their employees or their obligations towards them

and all purposes of this tender and shall indemnify, keep indemnified, hold harmless,

defend and protect Bank and its employees/officers/staff/

personnel/representatives/agents from any failure or omission on its part to do so and

against all claims or demands of liability and all consequences that may occur or arise

for any default or failure on its part to conform or comply with the above and all other

statutory obligations arising there from.

19.5.2 The Bidder shall promptly and timely obtain all such consents, permissions, approvals,

licenses, etc, as may be necessary or required for any of the purposes of this project or

for the conduct of their own business under any applicable Law, Government


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Regulation/Guidelines and shall keep the same valid and in force during the term of the

project, and in the event of any failure or omission to do so, shall indemnify, keep

indemnified, hold harmless, defend, protect and fully compensate Bank and its

employees/ officers/ staff/ personnel/ representatives/agents from and against all claims

or demands of liability and all consequences that may occur or arise for any default or

failure on its part to conform or comply with the above and all other statutory

obligations arising there from and Bank shall give notice of any such claim or demand

of liability within reasonable time to the Bidder.

19.5.3 The Bidder agrees that the Bidder shall not be entitled to assign / sub lease any or all of

its rights and or obligations under this tender and subsequent Agreement to any entity

including Bidder‟s affiliate without the prior written consent of Bank

19.5.4 In case Bank undergoes a merger, amalgamation, takeover, consolidation,

reconstruction, change of ownership, etc., this RFP shall be considered to be assigned

to the new entity and such an act shall not affect the rights of the Bidder under this

RFP.

19.6 RIGHT TO CANCELLATION OF THE ORDER BY THE BANK

19.6.1 Bank reserves its right to cancel the order in the event of one or more of the following

situations, that are not occasioned due to reasons solely and directly attributable to

Bank alone:

19.6.2 Delay in customization / implementation / installation beyond the specified period that

is agreed in the contract that shall be signed with the successful Bidder; and

19.6.3 Serious discrepancy in the quality of service / hardware / software expected during the

implementation, rollout and subsequent maintenance process.

19.6.4 In case of order cancellation, any payments made by Bank to the Bidder would

necessarily have to be returned to Bank with interest at the rate prescribed by the Bank.

19.7 INDEMNITY CLAUSE

19.7.1 The Bidder hereby indemnifies Bank and shall always keep indemnified and hold Bank

and its employees, personnel, officers, directors, (hereinafter collectively referred to as

“Personnel”) harmless from and against any and all losses, liabilities, claims, actions,

costs and expenses (including attorneys' fees) relating to, resulting directly or indirectly

from or in any way arising out of any claim, suit or proceeding brought against Bank as

a result of:

19.7.2 Bank‟s authorized / bonafide use of the Deliverables and /or the Services provided by

Bidder under this RFP;

19.7.3 and/or an act or omission of the Bidder, employees, agents, sub contractors in the

performance of the obligations of the Bidder under this RFP;


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19.7.4 and/or breach of any of the term of this RFP or breach of any representation or false

representation or inaccurate statement or assurance or covenant or warranty of the


19.7.5 and/or claims made by employees or subcontractors or subcontractors‟ employees, who

are deployed by the Bidder, against Bank

19.7.6 and/or breach of any of the term of this RFP or breach of any representation or false

representation or inaccurate statement or assurance or covenant or warranty of the


19.7.7 and/or any or all Deliverables or Services infringing any patent, trademarks, copyrights

or such other Intellectual Property Rights;

19.7.8 and/or breach of confidentiality obligations of the Bidder contained in this RFP;

19.7.9 And/or willful negligence or gross misconduct solely attributable to the Bidder or its

employees or sub-contractors.

19.7.10 The Bidder shall at its own cost and expenses defend or settle any claim against Bank

that the Deliverables and Services delivered or provided under this RFP infringe a

patent, utility model, industrial design, copyright, trade secret, mask work or trade mark

in the country where the Deliverables and Services are used, sold or received, provided

Bank:

19.7.10.1 notifies the Bidder in writing; and

19.7.10.2 cooperates with the Bidder in the defence and settlement of the claims.

19.8 INSPECTION OF RECORDS

19.8.1 All Bidder records with respect to any matters covered by this tender shall be made

available to Bank or its designees at any time during normal business hours, as often as

Bank deems necessary, to audit, examine, and make excerpts or transcripts of all

relevant data. Said records are subject to examination. Bank‟s auditors would execute

confidentiality agreement with the Bidder, provided that the auditors would be

permitted to submit their findings to Bank, which would be used by Bank. The cost of

the audit shall be borne by Bank. The scope of such audit would be limited to Service

Levels being covered under the contract, and financial information would be excluded

from such inspection, which shall be subject to the requirements of statutory and

regulatory authorities.

19.9 ALERT ON CORRUPT AND FRAUDULENT PRACTICES

19.9.1 As per Central Vigilance Commission (CVC) directives, it is required that Bidders /

Suppliers / Contractors observe the highest standard of ethics during the procurement

and execution of such contracts in pursuance of this policy:


PGB/FI-RFP/01/2010-11 of 80

19.9.2 "Corrupt Practice" means the offering, giving, receiving or soliciting of any thing of

values to influence the action of an official in the procurement process or in contract

execution AND

19.9.3 "Fraudulent Practice" means a misrepresentation of facts in order to influence a

procurement process or the execution of contract to the detriment of the Bank and

includes collusive practice among bidders (prior to or after bid submission) designed to

establish bid prices at artificial non-competitive levels and to deprive he Bank of the

benefits of free and open competition.

19.9.4 The Bank reserves the right to reject a proposal for award if it determines that the

bidder recommended for award has engaged in corrupt or fraudulent practices in

competing for the contract in question.

19.9.5 The Bank reserves the right to declare a firm ineligible, either indefinitely or for a

stated period of time, to be awarded a contract if at any time it determines that the firm

has engaged in corrupt or fraudulent practices in competing for or in executing the

contract.

19.10 PUBLICITY

19.10.1 Bidder is prohibited in using the name of Bank in any publicity material without the

specific written permission of Bank.

19.11 CONFIDENTIALITY AND NON-DISCLOSURE

19.11.1 The Bidder agrees to receive in confidence all Confidential Information and agrees not

to reveal the same to any other person under any circumstances, except to the extent

provided for in this Agreement. The Recipient shall also ensure that the Confidential

Information is not used for any of its business or other purposes or such purposes of

any other person

19.11.2 The bidder shall ensure that the Confidential Information is revealed only to such

persons within their organizations as would be necessary to perform its obligations to

Bank. The parties shall be bound not to disclose under any circumstances any

Confidential Information to any other person.

19.11.3 The bidder shall also procure from their respective employees, officers and agents to

whom Confidential Information is revealed a similar obligation of Confidentiality in the

form of a Non-Disclosure Agreement, which is reasonably acceptable to Bank. Such

Non-Disclosure Agreements shall also be executed by all the Personnel. A breach by

the respective employees of the Recipient of the terms of the Non-Disclosure

Agreement shall be considered as a breach by such party of its obligations to the

Discloser.


PGB/FI-RFP/01/2010-11 of 80

19.12 FORCE MAJEURE

19.12.1 Agreement to the extent said failures or delays are caused by causes beyond that party's

reasonable control and occurring without its fault or negligence, including, without

limitation, performance failures of parties outside the control of the Bidder (e.g.,

disruptions in power supply), governmental actions, provided that, force majeure shall

apply only if the failure to perform could not be Neither party shall be liable for any

failure or delay in performance under this avoided by the exercise of due care by the

party invoking this clause and such party does everything reasonably possible to

resume its performance .

19.12.2 A party affected by an event of force majeure shall give the other party written notice,

with full details as soon as possible and in any event not later than three (3) calendar

days of the occurrence of the cause relied upon. If force majeure applies, dates by

which performance obligations are scheduled to be met shall be extended for a period

of time equal to the time lost due to any delay so caused.

19.13 ARBITRATION

19.13.1 Any controversy or claim arising out of or relating to this project and the services to be

rendered by bidder under or pursuant to this project Agreement, the interpretation

hereof, or its breach shall, if not resolved by mutual discussions between the parties, be

settled by binding arbitration in accordance with the Arbitration and Conciliation Act,

1996. Arbitration shall be conducted in Bangalore in English language. The Arbitral

Tribunal shall be composed of one Arbitrator to be appointed by each Party, and a third

Umpire appointed by such Arbitrators. Each Party shall bear the costs, fees, etc of the

arbitrator nominated by them and shall equally bear the costs of the Umpire.

19.14 JURISDICTION

19.14.1 All disputes and controversies between Bank and Bidder shall be subject to the

exclusive jurisdiction of the Courts in the Bangalore and the parties agree to submit

themselves to the jurisdiction of such court. This Project agreement shall be governed

by the laws of India.

19.15 TERMINATION OF CONTRACT

19.15.1 Bank shall have the option to terminate the RFP in whole or part there of by giving the

Bidder at least 90 days notice in writing provided that bank agrees not to terminate this

RFP during which period the Bidder shall complete the implementation of the project

19.15.2 Not withstanding any thing contained herein above, Bank shall be entitled to terminate

this RFP if the;

19.15.3 Bidder breaches any of its obligations set forth in RFP and the said breach is not cured

with in 30 days after Bank given written notice

19.15.4 The Bidder fails to give a plan of action to cure the breach with in the said 30 days


PGB/FI-RFP/01/2010-11 of 80

19.16 EFFECT OF TERMINATION

19.16.1 The Bidder agrees that it shall not be relieved of its obligations under the reverse

transition mechanism notwithstanding the termination of the assignment.

19.16.2 Reverse Transition mechanism would typically include service and tasks that are

required to be performed / rendered by the Bidder to the Bank or its designee to ensure

smooth handover and transitioning of Bank's deliverables, maintenance and facility

management.

19.16.3 Same terms (including payment terms) which were applicable during the term of the

contract should be applicable for reverse transition services

M S RAJASHEKAR

GENERAL MANAGER

Encl: ANNEXURES


PGB/FI-RFP/01/2010-11 of 80

TECHNICAL BID FORM ANNEXURE-I

(Implementation of Financial Inclusion Solution in Pragathi Gramin Bank)

BIDDERS PROFILE

Sl.

No

Particulars Furnish Details wherever

information is provided

separately

A Profile

1 Name of the Bidder

2 Status of Bidder (Company, Partnership, Prop., etc)

3 Classification[i.e. Manufacture (OEM), Authorized agent,

dealer, others, please specify]

4 Whether in technical collaboration with foreign company? If

so give details.

5 If the applicant is a sole distributor/vendor, valid

authorization letter from OEMs to deal / market their product

in India and date up to which he agreement is valid

6 Year of Establishment & Details of Registration (attach

Documentary Proof)

7 Number of years experience in smart card based financial

inclusion project

8 Address

9 Telephone number

10 Fax number

11 Email Address

12 Website address of the Company

13 Key person (s) with contact details

a) Head Office / registered Office

b) Bangalore Office

14 Authorized Official with Name, Designation, Contact Phone

No/Mobile No/Fax No. etc for the RFP

15 Sales Tax Number

16 Income Tax Number

17 3 Years Audited Balance sheet and Financial Statements

18 Annual turnover for the last two years

19 Brief Financial Particulars for the last 2 financial years

Year 2008-2009 2009-2010

Net Profit/Loss

Total Turn over

Revenue earned from

Financial Inclusion

20 Enclose copies of Income Tax registration and last Income

tax clearance certificate


PGB/FI-RFP/01/2010-11 of 80

B Technical Experience and Expertise

1 Write up on the Company‟s experience/expertise in

implementing smart card based financial inclusion project.

(max 5 pages)

2 Location and Address of Manufacturing / Assembling Plant

C Details of Personnel

1 No. of Employees (Permanent / Under Contact) with Dept.

wise break-up [i.e. Production, Quality control, Marketing,

Installation & Commissioning, Service, Spare parts,

Administrative, etc

D At Service Centers of the applicant all over India

1 No. of skilled employees

2 No. of unskilled employees

3 No. of engineering employees

4 No. of administrative employees

5 List of special repair / workshop facility available

6 Any other information

Note: Point number 19 details requested for information only.

Wherever applicable submit documentary evidence to facilitate verification.

We hereby declare that the information submitted above is true to the best of our knowledge. We

understand that in case any discrepancy is found in the information submitted by us our tender is

liable to be rejected.

Signature of the Authorized Signatory with date & seal

(Name )

Date:


PGB/FI-RFP/01/2010-11 of 80

TECHNICAL BID FORM ANNEXURE-II


PROFILE OF EACH BUSINESS CORRESPONDENTS/ CONSORTIUM MEMBER

PROPOSED FOR THE PROJECT

Name of the Company:

Envisaged role of the Company:

Address of Registered Office / Head Office:

Phone Number (with STD Code)

Fax Number E-mail id

Constitution (Public Ltd Co., / Pvt Ltd Co./ Partnership/ Proprietory Concern etc)

Date of Establishment:

Name of Chief Executive:

Name of Contact Person and Phone No:

Line of Activity:

Date from which the bidder is experienced in similar type of activity:

Products Developed / Serviced (Attach product literature)

Details of Quality Certifications Obtained for the Company & its Products, such as ISO-9001:2000

etc. (attach Xerox copies).

Total Number of Employees:

Financial Background 2007-08 2008-09 2009-10

Turnover

Net Profit after TAX

Total Assets

Total Liabilities

Date:

Signature of Authorized Official with Seal

( Name )


PGB/FI-RFP/01/2010-11 of 80

TECHNICAL BID FORM ANNEXURE-III


PARTICULARS OF REGIONAL / BRANCH OFFICES

Number of Offices:

Within Karnataka:

Rest of India:

Total Number of Offices:

Please furnish information about Offices in the following format

City / State Address Name of Person

In-charge and

Phone No

No. Of Qualified

Support

Personnel &

their

qualifications

Whether adequate

trained Manpower,

knowledge base &

stock of spares

available for support

Date:


(Name )


PGB/FI-RFP/01/2010-11 of 80

TECHNICAL BID FORM ANNEXURE-IV


List of Major Banks/ Government Departments/ Agencies to whom Smart Card based Financial

Inclusion solutions have been offered and related references: (provide copies of such major contracts

executed)

Name of the

Bank &

contact details

Details of

services offered

Equipment

Supplied

Number of

BC/CSPs

deployed by

the Bidder

Contact

Person

Phone

Reference details of major contracts executed. Attach (a) reference letters for these contracts only (b)

copy of Purchase Orders for each of the model)

Date:


Name :

Date:


PGB/FI-RFP/01/2010-11 of 80

TECHNICAL BID FORM ANNEXURE-V


FINANCIAL POSITION OF THE BIDDER

(Enclose copy of Audited statements)

(In Rs in Lakhs)

2008 2009 2010

Audited (A) / Provisional (P) (A) (A) (A)

Paid up Capital

Tangible Net Worth

Total Assets

Total Sales (net of excise)

PBDIT

Profit after Tax

Please attach annual reports / duly audited financial statements for the three financial years.

Date: Signature of Authorised Official with Seal

Name

Date:


PGB/FI-RFP/01/2010-11 of 80

TECHNICAL BID FORM ANNEXURE-VI


STATEMENT OF TIE-UPS/ AGREEMENTS ENTERED FOR THE PROJECT

S.No. Job / Task Agency Name &

Address

Experience of the

Agents

Validity of tie-up

or agreement

Note: Copy /Copies of understanding/ tie-up/agreement should be enclosed.

Date: Signature of Authorised Official with Seal

Name

Designation


PGB/FI-RFP/01/2010-11 of 80

TECHNICAL COMPLIANCE STATEMENT (Check List) ANNEXURE-VII (Implementation of Financial Inclusion Solution in Pragathi Gramin Bank)

Point

No.

Technical specification compliance sheet Complied

(Y/N)

Remarks

1 The solution should be as per the standards

specified by IBA/IDRBT under “open

standards on smart card based solution for

Financial Inclusion” from time to time. And

smart Cards should support inter-operability

standard specified by IBA/IDRBT, UIDAI

among different systems.

2 The solution should be compatible with

UIDAI standards stipulated in respect of

HHTs (Micro ATMs)

3 The solution shall be capable of handling

minimum of 9 Banking functionalities such

as opening of SB & Term deposit accounts,

Remittances, Loans, cash deposits,

withdrawals, balance inquiry , mini statement

and also Micro insurance, Mutual funds etc,

bulk upload of EBT Govt. payments like

MGREGP, SSP etc. in both individual and

group, Micro Credit Group, etc.

4 The solution should ensure secure

communication between HHTs and FI server

& Branches and comply with acceptable

security standards such as SSL for data

download and upload.

5 The solution should be compatible/available

at branches using Laptop/Desktops besides

Hand Held Machines so as to enable

customer to make transactions in bank

premises in the event of failure of HHT or

otherwise.

6 The Solution should support minimum of

25000 financial transactions per day. The

Hardware and software should be right sized

to meet transactions envisaged as above and

such that the response time is acceptable to

the bank.

7 The solution should provide standard MIS

Reports as required by the bank and

capability to provide MIS as required by

statutory authorities for Financial Inclusion.

8 The solution should have provision for taking

backups of the transaction date and master

data at periodical intervals and conform to

Backup standards as contemplated by


PGB/FI-RFP/01/2010-11 of 80

Information Technology Act, 2000.

9 The Financial inclusion solution should have

facility to take backups of transaction data,

audit trail, logs etc. in external media.

10 The interface server should have capability of

pushing software upgrades, revised business

rules to HHTs during every BOD activity to

ensure that the devices have the latest

versions and business rules.

11 The solution should have capability of

parameterization of settings at interface

servers for the upper / lower limits of all

types of transactions.

12 The interface server should have controlled

access to the authorized personnel only as per

bank‟s IT security guidelines.

13 Bidder has to maintain Mean Time To

Restore (MTTR) of 2 hours for its interface

server at DC and DRC.

14 The HHTs should support connectivity

through any communication channels such as

GPRS, GSM, CDMA, and PSTN depending

upon the type of connectivity available at the

local place of operation.

15 The HHTs should support voice guidance

mechanism with Local language also apart

from English for all the activities done on

HHTs.

16 Any activity through the HHTs should be

processed only on the biometric

authentication of the BC and the customer

jointly.

17 HHTS and its application should be capable

to fetch software upgrades, revision in

business rules etc from the servers at the time

of BOD for having the latest version of the

software as well as business rules.

18 HHT printers should be able to print the

receipts of all type of transactions in local

language.

19 The solution and HHTs shall support online

and offline transactions. In case of online

transactions it should be integrated with

branches, existing Bank‟s FI Server and

proposed Bank CBS (Finacle) as per ISO

8583 format or any other format specified by

Bank and support protocol such as TCP / IP.

20 Audit trails should be stored for all the

transactions.

21 The bidder should provide hardware/software


PGB/FI-RFP/01/2010-11 of 80

support for uploading the daily data from the

HHTs to Bank‟s system for updating

customers account and downloading the

transactions/balance from the Bank‟s system

to HHTs.

22 The card type should be a contact smart card

and should have EEPROM size of minimum

32KB for Customers and minimum 64KB for

HHT Operator card.

23 The personalized Smart card design should

include Name of the card holder, Account

Number, Photo, address, father‟s/husband‟s

name, date of birth, bank identifier and at

least 2 fingerprints each from both hands.

24 Cards should support at least 9 applications

with history of last 10 transactions per

account.

25 The smart card offered under Financial

Inclusion solution should conform to the

guidelines issued by Government /

IDRBT/RBI/IBA.

26 Unique ID in the Smart Card should contain

Bank Identifier code.

27 The bidder should ensure business continuity

for the proposed solution.

28 The bidder must also ensure that the secrecy

an confidentiality of customer data is never

compromised and enter into a non-disclosure

agreement with the Bank for the same.

29 The bidder as part of Technical compliance

of the solution, has to give a demo of the

solution and arrange for an on site visit to

one of the Public sector bank‟s where the

solution is implemented.

30 The bidder has to provide a detailed write up

on offline and online transaction flow.

Date: Signature of the Authorized Signatory & seal.

Name :

Designation:


PGB/FI-RFP/01/2010-11 of 80

TECHNICAL BID FORM ANNEXURE-VIII


Feature Requirement Bidder‟s Response

1. Architecture of the Financial Inclusion System

Whether Architecture Proposed is

Centralized?

Indicate the

architecture and

data-flow

Whether the solution proposed is

“high performing?”

Justify


“highly available?”

Justify


“Scalable?”

Justify

Whether the solution proposed

provides reliable security end-to-end?

Specify the

security measures

in detail


having redundancies

Describe

Whether the solution proposed has

“no single point of failure?”

Give your

assessment

Whether the solution proposed has a

“Good Response Time”

Indicate the

response times

Comment on the Bandwidth

utilization by the proposed solution

per user & Any optimization tools are

available.

Indicate the band

width required &

tools for

optimization

Whether easier back up and retrieval

mechanisms are built in to the solution proposed?

Comment

Business Process Continuity features Describe

Whether the proposed solution is all

set for DR Replication should the

Bank decide to implement

Describe

2. Protocols Used


Specify the standards/

protocols supported/used

between different

components/modules in the total solution

Specify in detail


PGB/FI-RFP/01/2010-11 of 80

3. Interoperability

Interoperable with Other

Servers in the bank

Specify the

protocols

Comment on the

interoperability of the solution

proposed with other applications/platforms.

Desired

4. Bandwidth and Other Details

The bidder should indicate the

type/band width for each type

of connectivity in the present

network architecture at each level.

Indicate

Is a detailed Network

architecture diagram attached?

Mandatory

Card Management Software

5.Features Bidder‟s Response

Platform and environment on which software runs

(operating system, database, reporting tools, security environment supported/offered)

Smart Card platforms, personalization systems and

Host Security Modules supported (including data

synchronization for contactless or dual-interface cards)

Capacity in terms of cards, applications,

simultaneous users, number of cards issued per

minute, etc

Structure of issuing process (immediate, batch, etc)

Any specific interfaces to external databases such as

Certification Authority, etc.

Cryptographic algorithms and key management

systems to be used.

Workflow and processes for all relevant activities

and lifecycle phases

The method to be used for updating cards (online

push, pull through scripting or action lists)

Certifications or approvals by national authorities if

required.


PGB/FI-RFP/01/2010-11 of 80

6. List of Hardware Proposed to be used by the Bidder (Please, cover all the equipment

Server, Handheld devices, scanners, etc) location-wise (i.e., at Bank premises or Bidder‟s

premises):

S.

No.

Type of Hardware

(eg.Server/Switch/ OFC etc.)

Make and

Model

Quantity Proposed Use

1

2

3

4

5

6

7

7. Details of Software Proposed to be used by the Bidder

S.

No.

Software (Operating System,

Middleware, Application, etc)

Bidder Version No. of Licenses

Required

1

2

3

4

5

8. External Backup


1 External Backup system

proposed shall provide for

speed backup.

Give specifications of

all the components of

external backup system

proposed (make, model,

configuration, backup

speed, bench mark

details with the

proposed server/

storage, if any, etc.)

9. Automated Tape Library Unit


1 Specify the Automated Give specifications of


PGB/FI-RFP/01/2010-11 of 80

Tape Library Backup

system configuration proposed

Performance of the above

all the components of

Automated TLU system

proposed (make, model,

configuration backup

speed, bench mark

details with the

proposed server/

storage, if any, etc.)

Please note that

Redundancy for

automated Tape Library

Unit is NOT required.

10. Any Other Equipment Proposed by the Bidder and not Covered Above (to make the

solution fully functional as per the architecture proposed by the bidder):


1

2

3

4

5

11. Training that will be imparted to Front-end (field) functionaries


1 Training Schedule Indicate no of days and total

number of hours

2 No of persons to be trained per site Minimum of 2 persons

3 Content Indicate broad areas of

proposed training

4 Location where the training is

provided

Indicate

5 Training material Indicate willingness to provide a copy to the Bank

6 Equipment required for training To be brought in by the

Bidder

12 Information relating to on going FI Project under taken by the Bidder

Total number of BC deployed for

FI Project

Provide documentation

support


Name :

Designation:


PGB/FI-RFP/01/2010-11 of 80

TECHNICAL BID FORM ANNEXURE- IX


CONFIRMATION OF SOFT COPY

To

The General Manager

Pragathi Gramin Bank

Head Office

Bellary

Dear Sir,

Sub: Pragathi Gramin Bank Financial Inclusion Solution

Further to our proposal dated XXXXXXX, in response to the Request for Proposal (Bank‟s tender

No._____ herein after referred to as “RFP”) issued by Pragathi Gramin Bank (“Bank”) we hereby

covenant, warrant and confirm as follows:

The soft-copies of the proposal submitted by us in response to the RFP and the related addendums

and other documents including the changes made to the original tender documents issued by the

Bank, conform to and are identical with the hard-copies of aforesaid proposal submitted by us, in all

respects.

Yours faithfully,

Signature of the Authorized Signatory & seal.

Name :

Designation:

Date:


PGB/FI-RFP/01/2010-11 of 80

TECHNICAL BID FORM ANNEXURE-X


BIDDER’s UNDERTAKING LETTER

Date:

From:

To

The General Manager


Head Office, Bellary

Dear Sir,

We, the undersigned, as Bidder, having examined the complete RFP document (along with its

annexures), do hereby offer to produce, deliver, install, support and maintain Pragathi Gramin Bank

Financial Inclusion Solution in full conformity of your requirements as elaborated in above said

RFP for the amounts mentioned by us in the Commercial Bid or such other sums as may be agreed

to between us.

We hereby agree to abide by and fulfill all the terms and conditions stipulated in the RFP and in

default thereof, to forfeit and pay to you or your successors or authorized nominees such sums of

money as are stipulated in the conditions contained in the RFP.

We agree to abide by our Offer for a period of 6 months from the date of last day of Bid submission

and it shall remain binding on us for acceptance at any time before the expiration of this period.

We understand that you are not bound to accept the lowest or any bid you may receive.

We undertake, if our Bid is accepted, to provide Contract Performance Guarantee in the form and in

the amounts and within the times stipulated in the RFP.

We undertake as a part of this contract for successful operation of the Pragathi Gramin Bank

Financial Inclusion solution including WAN and its expansion in future by the Bank during the

warranty period.

Yours faithfully,

Signature of the Authorized Signatory & seal.

Name:

Date: Designation:


PGB/FI-RFP/01/2010-11 of 80

TECHNICAL BID FORM ANNEXURE-XI


COMPLIANCE STATEMENT

Declaration

We hereby undertake to agree to abide by all the terms & conditions stipulated in the tender

document.

We certify that the systems / solution offered by us for tender conform to the specifications

stipulated in the tender form.

Date: Signature of the Authorized Signatory & seal

Name:

Designation:


PGB/FI-RFP/01/2010-11 of 80

COMMERCIAL BID – COVERING LETTER ANNEXURE-XII


To: Date

General Manager


Head Office, Bellary.

Dear Sir,

Sub: Implementation of Financial Inclusion Project

Having examined the Bidding Documents, the receipt of which is hereby duly acknowledged, we,

the undersigned, offer to supply and deliver the -----------------(equipment name), in conformity with

the said Bidding documents for the sum of .…………….(Rs. ) or such other sums as may

be ascertained in accordance with the Schedule of Prices attached herewith and made part of this

Bid.

We undertake, if our Bid is accepted, to deliver, install and commission the system in accordance

with the delivery schedule specified in the Schedule of Requirements/ purchase orders issued from

time to time.

If our Bid is accepted, we will obtain the guarantee of a bank in a sum equivalent to prescribed

percent of the each of Purchase Order Price, placed on us, for the due performance of the Contract in

the form prescribed by the Bank.

We agree to abide by the Bid and the rates quoted therein for the orders awarded by the Bank up to

the period prescribed in the Bid which shall remain binding upon us.

Until a formal contract is prepared and executed, this Bid, together with your written acceptance

thereof and your notification of award, shall constitute a binding Contract between us.

We undertake that, in competing for (and, if the award is made to us, in executing) the above

contract, we will strictly observe the laws against fraud and corruption in force in India namely

"Prevention of Corruption Act 1988".

We understand that you are not bound to accept the lowest or any Bid you may receive.

Dated this…………………… Day of………………………..2011.

(Signature)

(Name) (in the capacity of)

Duly authorized to sign Bid for and on behalf of


PGB/FI-RFP/01/2010-11 of 80

COMMERCIAL BID FOR MODEL-A ANNEXURE-XIII


Sl

No

Name of the

component

Full

Description

No. of Units

A

Cost

per unit

B

Total

cost

C=(A*B)

Taxes

D

Total

Cost incl.

Taxes

E=(C+D)

1 Cost of Smart

Cards - 32k

(customer)

500000

2

Cost of Smart Card

- 64k (BC/CSP)

600

3 Enrolment of new

Customers

500000

4 Successful

financial

transaction charges

for extending end-

to end technology

and end-to-end

Banking &

Financial services

through Bidder‟s

BCs/CSPs

(excluding balance

enquiry and Mini

Statements)

5000000

txns

5 Any other cost not

included any

where (please

mention details)

6 GRAND TOTAL

xxxxx xxx

Notes:

1. The number of units mentioned above are for the purpose of arriving at L1 Bidder only.

However, the contractual rate finalized for the smart cards/enrolment charges / per

transaction charges, Per BC charges shall be applicable for the actuals and not limited to the

number of units mentioned in the commercial bid.

2. Determination of L1 bidder will be based on the Grand total of total Cost, including taxes (E)

as mentioned above. However, actual procurement will be in stages as per Bank‟s Financial

Inclusion Plan. The Bank is under no obligation to procure volumes indicated here in above.

3. Each point of service requires technology support like Hand held Terminals,(supported by

scanners, printers and card readers etc.,) and also Business Correspondents/CSPs for


PGB/FI-RFP/01/2010-11 of 80

conducting operations and extending banking services. The aspect shall cover all activities

envisaged in the RFP at each of the customer contact points.

4. Enrollment charges will be paid on monthly basis basing on the bills/invoice submitted

together with Reports.

5. Transaction charges for successful actual number of Financial Transactions charges

(excluding balance enquiry and Mini Statement which are the part of service) shall be

released to the bidder basing on the bill/invoice submitted by the bidder supported by

details/reports and the charges will be paid on monthly in arrears.

6. Bidder to comply with RFP terms.

7. Bidder must take care in filling price information in the Commercial Bid to ensure that there

are no typographical or arithmetic errors. All fields must be filled up correctly.

8. The prices will be inclusive of all taxes, duties, levies, insurance, installation charges etc.,

9. TDS will be deductible as per rules prevailing on the date of payment of applicable items.

10. The Unit Price mentioned in the bid would remain valid for a period of FIVE years

irrespective of the actual quantity.

11. Further, we declare that all the terms and conditions as per the RFP were read by us and we

are agreeable for all the terms and conditions.


Name:

Designation:


PGB/FI-RFP/01/2010-11 of 80

COMMERCIAL BID FOR MODEL-B ANNEXURE-XIV


Sl

No

Name of the

component

Full

Description

No. of Units

A

Cost

per unit

B

Total

cost

C=(A*B)

Taxes

D

Total

Cost incl.

Taxes

E=(C+D)

1 Cost of Smart

Cards - 32k

(customer)

500000

2

Cost of Smart Card

- 64k (BC/CSP)

600

3 Enrolment of new

Customers

500000

4 Successful

Financial

Transaction

Charges for

extending end to

end

technology/banking

and financial

services through

Bank‟s BCs/CSPs

(excluding balance

enquiry and Mini

Statements)

5000000

txns

5 Any other cost not

included any where

(please mention

details)

6 GRAND TOTAL

xxxxx xxx

Notes:

1. In this Model-B, although BCs/CSPs are engaged by the Bank, we undertake to monitor,

supervise and coordinate the working of BCs/CSPs for smooth implementation of FI Plan.

Charges in this regard are included in item no. 4, above.

2. The number of units mentioned above are for the purpose of arriving at L1 Bidder only.

However, the contractual rate finalized for the smart cards/enrolment charges / per transaction

charges, shall be applicable for the actuals and not limited to the number of units mentioned in

the commercial bid.

3. Determination of L1 bidder will be based on the Grand total of total cost, including taxes (E) as

mentioned above. However, actual procurement will be in stages as per Bank‟s Financial

Inclusion Plan. The Bank is under no obligation to procure volumes indicated here in above.


PGB/FI-RFP/01/2010-11 of 80

4. Each point of service requires technology support like Hand held Terminals,(supported by

scanners, printers and card readers etc.,) for conducting operations and extending banking

services through the BCs/CSPs engaged by the Bank.

5. Enrollment charges will be paid on monthly basis basing on the bills/invoice submitted together

with Reports.

6. Transaction charges for actual number of Financial Transactions (excluding balance enquiry

and Mini Statement which are the part of service) shall be released to the bidder basing on the

bill/invoice submitted by the bidder supported by details/reports and the charges will be paid

on monthly in arrears.

7. Bidder to comply with RFP terms.

8. Bidder must take care in filling price information in the Commercial Bid to ensure that there are

no typographical or arithmetic errors. All fields must be filled up correctly.

9 .The prices will be inclusive of all taxes, duties, levies, insurance, installation charges etc.,

10.TDS will be deductible as per rules prevailing on the date of payment of applicable items.

11.The Unit Price mentioned in the bid would remain valid for a period of FIVE years irrespective

of the actual quantity.

12. Further, we declare that all the terms and conditions as per the RFP were read by us and we are

agreeable for all the terms and conditions.


Name :

Designation:


PGB/FI-RFP/01/2010-11 of 80

AUTHORIZATION LETTER FORMAT ANNEXURE - XV


To Date

The General Manager,


Head Office, Bellary

Dear Sir,

SUB: Authorization Letter for attending the Bid Opening

REF: YOUR RFP

This has reference to your above RFP for implementation of Financial Inclusion solution.

Mr. /Miss/Mrs.____________________________________ is hereby authorized to attend the bid

opening of the above RFP ______________ DT: ________________ on ________________

behalf of our organization.

The specimen signature is attested below:

______________________________

Specimen Signature of Representative

_____________________________ __________________________

Signature of Authorizing Authority Signature of Attesting Authority

__________________________

Name of Authorizing Authority


PGB/FI-RFP/01/2010-11 of 80

BANK GURANTEE FORMAT FOR BID GUARANTEE ANNEXURE-XVI


To

…………………………

…………………………

WHERE AS ______________________(Name of Bidder) herein after called “ the bid” has

submitted its tender dated _____________(Date) for the execution of (Name of Contract)

_____________(herein after called “ the bid”) in favour of ________________herein after called the

“ Employer”;

KNOW ALL MEN by these presents that we, ……………(name of the issuing Bank), a body

corporate constituted under the ……………………... having its Head Office at ……………….

Amongst others a branch/office at __________________(hereinafter called “ the Bank” are bound

unto the employer for the sum of Rs_____________ (Rupees

____________________________ only) for which payment well and truly to be made to the said

Employer, the Bank binds itself, its successors and assigns by these presents;.

THE CONDITIONS of this obligation are :

(a) If the Bidder withdraws its bid during the period. of bid validity

specified in the Bid; or

(b) If the Bidder having been notified of the acceptance of his bid by the

Employer during the period of bid validity;

(i) Fails or refuses to execute the Agreement, if required; or

(ii) Fails or refuses to furnish the performance security, in accordance

with clause ______________ of conditions of Contract.

We undertake to pay to the Employer up to the above amount upon receipt of his first written

demand without the Employer having to substantiate his demand, provided that in his demand the

Employer will note that the amount claimed by him is due to him owing to the occurrence of one or

both of the two conditions, specifying the occurred condition or conditions.

Notwithstanding anything herein contained, our liability under this guarantee is Limited to

Rs.__________ (Rupees____________________________only)

and will remain in force up to ____________including the date of expiry of the period of bid

validity, and any demand in respect thereof must reach the Bank not later than the date of expiry of

this guarantee i.e., on or before_____________ failing which all the rights of the employer under the

guarantee shall be forfeited and the Bank shall be deemed to be relieved or discharged from all

liabilities hereunder.

Dated __________day of ____________20_____

SIGNATURE OF THE BANK


PGB/FI-RFP/01/2010-11 of 80

NON-DISCLOSURE AGREEMENT FORMAT ANNEXURE-XVII


WHERE AS, we, __________________________, having Registered Office

at________________________, hereinafter referred to as the COMPANY, are agreeable to offering

the Smart card based Financial Inclusion solution to Pragathi Gramin Bank, having its head office at

32, Sanganakal Road Gandhinagar Bellary hereinafter referred to as the BANK and

WHEREAS, the COMPANY understands that in the course of submission of the offer for the said

Smart card based Financial Inclusion Solution shared by the BANK in their Request for Proposal is

confidential and /or proprietary to the BANK, and

WHEREAS, the COMPANY understands that in the course of submission of the offer for the said

Smart card based Financial Inclusion Solution and / or in the aftermath thereof, it may be necessary

that the COMPANY may perform certain jobs/duties on the Bank‟s properties and/or have access to

certain plans, documents, approvals or information of the BANK; NOW THEREFORE, in

consideration of the foregoing, the COMPANY agrees to all of the following conditions, in order to

induce the BANK to grant the COMPANY specific access to the Bank‟s property/information.

The COMPANY will not publish or disclose to others, nor, use in any services that the COMPANY

performs for others, any confidential or proprietary information belonging to the BANK, unless the

COMPANY has first obtained the Bank‟s written Authorization to do so.

The COMPANY agrees that notes, specifications, designs, memoranda and other date shared by the

BANK or, prepared or produced by the COMPANY for the purpose of submitting the offer to the

BANK for the said Smart card based Financial Inclusion Solution, will not be disclosed to during or

subsequent to submission of the offer to the BANK, to anyone outside the BANK.

The COMPANY shall not, without the Banks written consent, disclose the contents of this Request

for Proposal (Bid) or any provision thereof, or any specification plan, pattern, sample or information

(to be) furnished by or on behalf of the BANK in connection therewith, to any person(s) other than

those employed/engaged by the COMPANY for the purpose of submitting the offer to the BANK

and/or for the performance of the Contract in the aftermath. Disclosure to any employed/engaged

person(s) shall be made in confidence and shall extend only so far as necessary for the purpose of

such performance.

Authorized Signatory

Place: Name:

Date: Designation:

Office Seal:


PGB/FI-RFP/01/2010-11 of 80

THE PRE BID QUERY FORMAT ANNEXURE-XVIII


Sr. No. Page

No.

Item sr.

no.

Query Response to query (to be left

blank by the bidder)


PGB/FI-RFP/01/2010-11 of 80

BIDDER UNDERTAKING - TECHNICAL EVALUATION ANNEXURE - XIX

(Implementation of Financial Inclusion Solution in Pragathi Gramin Ban)

Subject: Bidder undertaking Technical Evaluation „RFP‟ for selection of Service Providers

for implementation of Pragathi Gramin Bank Financial Inclusion Solution

Ref No.:PGB/FI-RFP/01/2010-11 DATED:

Dear Sir/Madam,

This is with reference to your offer against our tender – Request for Proposal for selection of Service

Providers to implement Pragathi Gramin Bank Financial Inclusion Solution bearing Ref

No.:PGB/FI-RFP/01/2010-11 DATED:.

The evaluation has been conducted based on the Evaluation Methodology defined in the RFP.

Bidder Undertaking:

This is to confirm that the bid evaluation process conducted by Pragathi Gramin Bank has

been conducted in a fair, transparent and uniform manner and we have no reservations or

complaints against the process followed. We are well informed of the process and it was fair

and transparent.

We have no complaints whatsoever against Pragathi Gramin Bank or its consultants.

Vendor Authorized Representative Name Signature

Witness :

Name :

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