Karnataka Vikas Grameena Bank

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30 Νοε 2013 (πριν από 5 χρόνια και 1 μήνα)

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REQUEST FOR PROPOSAL

FOR

APPOINTMENT OF
SERVICE PROVIDER FOR
B
C

SERVICES


(
RFP

Ref. No.
KVGB
/
H
O:FID/
2013

dated
October 24
, 2013
)














Karnataka Vikas Grameena Bank

Head

Office:

Financial Inclusion Dept.

Belgaum Road

Dharwad



580008

(
Telephone:

08
36
-
2
442204
,
Fax:

08
36
-
20)

Bid Ref. No.
KVGB
/
H
O:FID/
2013

dated
October 24
, 2013

Page
2

of
98

CONTENTS


1.

PREAMBLE

2.

DEFINITIONS

3.

REQUEST FOR PROPOSAL

4.

SCOPE OF SERVICE

5.

ELIGIBILITY CRITERIA

6.

COMPLIANCE REQUIREMENTS

7.

TECHNICAL DELIVERABLES

8.

FUNCTIONAL ANDTECHNICAL REQUIREMENTS

9.

ARCHITECHTURE IN BRIEF

10.

BID PROCESS


GENER
AL TERMS

11.

BID SECURITY

12.

TECHNICAL AND COMMERCIAL BID

13.

OPENING OF BIDS AND SELECTION OF SERVICE PROVIDER

14.

TERMS AND CONDITIONS FOR THE PROPOSAL

15.

PENALTY FOR DELAY

16.

PAYMENT TERMS

17.


SERVICE AGREEMENT AND PENALTIES

18.

ANNEXURES :


ANNEXURE
-
I


SCOPE OF BASIC BANKING
PRODUCTS AND SERVICES

TO BE OFFERED.





ANNEXURE
-
II

FUNCTIONAL REQUIREMENTS

ANNEXURE

III

FIXED CHARGES

ANNEXURE
-
IV

COMMERCIAL BID

ANNEXURE
-
V

ELIGIBILE ENTITIES AND GENERAL GUIDELINES


ANNEXURE
-
VI

TECHNICAL BID FORMAT

ANNEXURE
-
VII

STATEMENT OF COMPLIANCE
/ DEVIATION

ANNEXURE
-
VIII

TECHNICAL EVALUATION

ANNEXURE
-
IX

STANDARD OPERATING PROCEDURES FOR BC

ANNEXURE
-
X

DETAILS OF BUSINESS CORRESPONDENT OUTLETS

ANNEXURE
-
XI

OFFER COVERING LETTER

ANNEXURE
-
XII

UNDERTAKING LETTER

ANNEXURE
-
XIII

FORMAT OF BANK GUARANTEE
/ BID SECURITY

ANNEXURE
-
XIV

SERVICE LEVEL

AGREEMENT


Bid Ref. No.
KVGB
/
H
O:FID/
2013

dated
October 24
, 2013

Page
3

of
98

1.


PREAMBLE

With a view to ensuring greater financial inclusion and to provide
comprehensive financial services to the underprivileged, particularly in
unbanked and under
-
banked areas,
Karnataka Vikas
Grameena Bank
, having its
Head Office at
Dharwad
,


576 104 in
Karnataka state
,
hereinafter called
“Bank”,
propose
s

to engage the services of Business Correspondents as
permitted by Reserve Bank of India. The Business Correspondents will render
services on behalf of the bank, on contract basis, through their outlets through
use of Information and Communication Technolo
gy. The Financial Inclusion (FI)
programs have a larger objective of offering a variety of financial services
ranging from no
-
frill account with Limited Overdraft, other loan accounts,
Fixed Deposit, Recurring Deposit, KCC, GCC, Remittances, Micro Pension,

Micro
Insurance, and Mutual Funds etc.
Electronic Benefit Transfer Scheme
sponsored by Central /State Governments and also Direct Benefit Transfer
Scheme introduced in
3

Districts presently (being extended
to all district

in
phases) will also form part of

the current requirements.
The project includes
supply, commissioning, installation, up gradation, customization, integration,
operations, services, maintenance and management of the entire
implementation
, including cash management,

during
the contract per
iod of
three

years and which may be extended, subject to mutual agreement, by a
further period of
two

years.

The approximate number of
Sub
-
Service Areas and urban Clusters
to be
covered through this RFP will be around
513

which may be increased /
decreased

at the sole discretion of the Bank.

The eligibility criteria, the evaluation process and other terms and conditions
are set out in this RFP. Bank will enter into contract

with the selected Service
Provider on such terms and conditions as contained in this

RFP. The Service
Provider will act on behalf of the Bank in respect of the specified services and
will not be eligible to claim any benefit except for the fee or commission as
may be agreed. The Service Provider shall not use the trade mark, logo or any
p
roprietary right of the Bank without their written consent.


2.

DEFINITIONS

Bid Ref. No.
KVGB
/
H
O:FID/
2013

dated
October 24
, 2013

Page
4

of
98

Words used in this Request for Proposal shall have the meanings assigned to
them hereunder unless used in a context totally contrary:

2.1.

“Area of
O
peration” means geographic area alloc
ated to each B
usiness
Correspondent Agent (BCA)
.
Sub
-
Service Area (SSA
)

will be the unit for
operation. Each BCA will cover all the villages in the
Sub
-
Service Area

allotted to that BCA
. It is expected that each BCA will cater
to
approximately

1000
-
1500
households

in SSA
.

In respect of Urban clusters, details of wards or such other geographical
boundary as decided by the Lead Bank forms the Area of Operation.

2.2.

“Bank” mean
s
Karnataka Vikas Grameena Bank
.

2.3.

“Bid” means the offer made by the Bidder in respon
se to this RFP.

2.4.

“Bidder” means any person/entity who bids for offering services as a
Business Correspondent for the Bank pursuant to the terms of this RFP.

2.5.


BC” means
Corporate
Business Correspondent

a

person/entity who is
eligible to act as a business cor
respondent for the bank under the terms
hereof for providing services described in
Annexure
-
I, Annexure
-
II.



2.6.

“BCA” means
Business Correspondent
Agent

or an
Employee of BC
operating the CSP. The general guidelines to be followed by the BC for
engaging a B
CA are mentioned in
Annexure V.

2.7.

“Service Provider” (SP) means any person /entity with whom the Bank
enters into agreement for providing services of Business Correspondent
with
the T
echnology solution
based either on Smart Card technology
as
described in
the ‘Scope of Work’ in this document.

The terms BC and SP
are used interchangeably.

2.8.

“Services” means the services to be provided by the Service Provider
pursuant to the terms of the Service
Level
Agreement

2.9.

“Customer Service Point (CSP)

or Business Corresp
ondent Outlet (BCO)

means the outlet of the Service Provider which will be providing
Banking and financial services.

Bid Ref. No.
KVGB
/
H
O:FID/
2013

dated
October 24
, 2013

Page
5

of
98

2.10.



Service
Level

Agreement” means the agreement to be executed
between the Bank and the Service Provider containing the terms and
conditions on which the Services will be provided (a model agreement is
annexed to this RFP).

2.11.

“Financial Services” means
enrolment for
openin
g of no
-
frill accounts,
loan accounts, FD, RD, KCC, GCC etc., and various
transactions
operations through them, remittances,
extending services like
Micro
Pensions, Micro Insurance, Mutual Funds etc.

2.12.

“FI / FI Implementation” means extending financial servi
ces through
Branchless banking through Business Correspondent module, including
extending services under ‘Electronic Benefit Transfer (EBT)’ and / or
‘Direct Benefit Transfer (DBT)’

using Smart Card Technology
.

2.13.


“Eligibility Criteria” means the criteria re
quired to be satisfied by the
Bidder in order to be engaged as a Service Provider and as per
guidelines of RBI and more particularly described to in this RFP.

2.14.

“Hand Held Devices or Fi
eld

Devices” means
Micro
-
ATMs or Hand Held
Machines using Smart Card Tec
hnology supporting both Online/Offline
transactions.

2.15.

“FI Server or Intermediary Server” means Bidder’s server with fully
parameterized software module to Control, Drive Field devices, act as
router, facilitate conducting various FI Services after seeking
a
uthentication from
R
emote server / Bank’s Gateway etc.

2.16.

“Lead Bank” means the Public Sector Bank which convenes
DCC/
SLBC
meetings in the
District /
State

respectively
.

2.17.

“NPCI” means National Payment Corporation of India.

2.18.

“RBI’ means Reserve Bank of India

2.19.


Host” means Bank’s Core Banking Solution (CBS) System provided by

C
-
Edge Technologies Ltd


2.20.

“RFP” means this Request for Proposa
l bearing Bid Reference No.
KVGB/HO:FID/2013 dated
Oct 24
, 2013
.

Bid Ref. No.
KVGB
/
H
O:FID/
2013

dated
October 24
, 2013

Page
6

of
98

2.21.


“UIDAI” means Unique Identification Authority of India

2.22.

Words
“Service Provider” and “Bidder”
used in the RFP, carry the same
meaning.


3.

REQUEST FOR PROPOSAL

3.1

This Request for Proposal is being issued by
Karnataka Vikas Grameena
Bank

inviting proposal from eligible bidders
, offering
Smart Card
Technology
,

to be engage
d as Service Provider by the Bank for a period
of
3
years for providing services of Business Correspondents in
the Sub
-
Service Area and Urban clusters
in the area of operation of the Bank
. The
period
may
be further extended by another two years on the same

terms and conditions with mutual agreement between the
B
ank and the
successful bidder. The Bank requests response to this RFP only from
those bidders who are eligible as per the eligibility norms detailed in this
RFP.

3.2

The time schedule for various activit
ies is listed below:

Particulars

Details

Last
d
ate to seek clarifications on the
RFP

November 2
nd

, 2013


Last date & time for receipt of
response to this RFP together with

a)

Bank Guarantee of
Rs.
3
,
5
0,000/
-

(Rs.

three lakhs fifty thousand

Only)
favoring
Karnataka Vikas
Grameena Bank
, as per the
format in the RFP,
as
Bid Security
(re
turnable
only to non
-
successful
B
idders)


November 13
, 2013

(
04
.
00
PM
)

To be submitted
at
Karnataka Vikas
Grameena Bank
,
Head

Office,
Dharwad
-
580008

Address for
communication

General Manager
,
Karnataka Vikas
Grameena Bank
,

Financial Inclusion Department,

Bid Ref. No.
KVGB
/
H
O:FID/
2013

dated
October 24
, 2013

Page
7

of
98

Particulars

Details

Head

Office,
Dharwad
,


Important Note

All
the
prospective Bidders and
the
stake holders are requested to visit
Bank’s website at
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ng the same as corrigendum on the Bank’s web
-
site.


3.3


DISCLAIMER


3.3.1

The information contained in this RFP document or any information
provided subsequently to Bidder(s) whether verbally or in documentary
form by or on behalf of the Bank, is provided to the
Bidder(s) on the
terms and conditions set out in this RFP document and all other terms
and conditions subject to which such information is provided.


3.3.2

This RFP is not an offer by the Bank, but an invitation to offer. The
purpose of this RFP is to provide t
he Bidder(s) with information to assist
the formulation of their proposals. This RFP does not claim to contain all
the information each bidder may require. Each Bidder should conduct its
own investigations and analysis and should check the accuracy, reliab
ility
and completeness of the information in this RFP and where necessary
obtain independent advice. Bank makes no representation or warranty
and shall incur no liability under any law, statute, rules or regulations as
to the accuracy, reliability or compl
eteness of this RFP. Bank may in its
absolute discretion, but without being under any obligation to do so,
update, amend or supplement the information in this RFP.


3.3.3

No contractual obligation, whatsoever, shall arise from the RFP process
unless and until
a formal contract is signed and executed by the duly
authorized signatories of the Bank and the Bidder.


3.4

AMENDMENT OF BIDDING DOCUMENT

Bid Ref. No.
KVGB
/
H
O:FID/
2013

dated
October 24
, 2013

Page
8

of
98


3.4.1

At any time prior to the deadline for submission of Bids, Bank, for any
reason, whether, at its own initiative or in
response to a clarification
requested by a prospective Bidder, may modify the Bidding Document,
by amendment.


3.4.2

Notification of amendments will be put up on the Bank’s Website and
will be binding on all Bidders.


3.4.3

In order to allow prospective Bidders reason
able time in which to take
the amendment into account in preparing their Bids, the Bank, at its
discretion, may extend the deadline for a reasonable period as decided
by the Bank for submission of Bids.


4.

SCOPE OF SERVICE

4.1.

The Service Provider would be
required to provide the services, facilities,
infrastructure, technology, etc.
,

listed in
Annexure
-
I

covering the
habitations

in Bank’s allotted Sub
-
Service Areas and Urban
in the
operational area of the Bank
. Also, a
dditional locations
will

be informed
by the Bank in due course
.

4.2.

The technology could be either Smart Card Technology
supporting
Offline

and Online transactions.

The Service Provider will provide an
end
-
to
-
end solution to the Bank which interalia includes

that
:

4.2.1

The solution
is

highly secure, amenable to audit and follow widely
accepted open standards to allow inter
-
operability among different
systems adopted by different Banks.


4.2.2

The solution
is
compatible and synergize with the core Banking solution
of the Bank.


4.2.3

The solution
support
s

financial products such as savings deposits, Fixed
deposits, recurring deposits, micro credits, micro insurance, micro
mutual fund, pension, remittances and other payment instruments and
such other products as may be decided by the Bank in due cou
rse. It
should have facility
for
bulk upload
of EBT
Payments like NREGA, Social
Security Pension, and Electronic Benefit transfer etc.


4.2.4

Supply, Personalization and delivery of
S
mart

to

the account holders,
Card Management System.

Bid Ref. No.
KVGB
/
H
O:FID/
2013

dated
October 24
, 2013

Page
9

of
98


4.2.5

Supply, Maintenance and Operation of
H
and

Held De
vices/ Micro
-
ATM,
also supporting card / Card less RuPay transactions,
support equipment
and application software that has capability to support
O
ffline
/ O
nline
transactions & operations at the service deli
very points.


4.2.6

All hardware, software, consumables, etc
.,

at the service delivery points
would be owned by the Service Provider and used exclusively for
Karnataka Vikas Grameena Bank
’s purpose.


4.2.7

FI Setup, consisting of both Hardware and Software, deployed at
Bank’s
Production site
at Mumbai
is to be replicated at Bank’s DR Site at
Bangalore as a part of Disaster Management and Business Continuity
Plan
.


4.3.

The field devices like the Hand Held
Machines, etc., will be driven by the
FI Server of the Bidder
, which i
n

turn is connected to the Bank’s FI
Gateway. Bidder to locate their FI server at Bank’s Data Centre at
Mumbai (Primary/Production Site) and also at Bank

s DR Site (Secondary
Site)

at th
eir cost
. FI Server of the Bidder to seek biometric
authentication from Bank’s FI Gateway.

4.4.

The Service Provider shall provide the services through the BCA/CSP
outlets engaged by
him
. The Bank will prescribe the number of BCA/CSP
to be engaged in the area
of operation. The Bank will have the option of
increasing the number of CSP outlets

to
the
extent of 50% over and
above

the quantities mentioned in this RFP
. List of additional locations
where CSPs are to be established will be advised to the selected bidd
er
by the bank separately from time to time
,

as per the need of the Bank /
RBI/Govt. guidelines. The bank would further have
an
option of
discontinuing the CSP outlets in areas where a bank branch of any bank
gets opened during the period of the contract.

It is essential that CSP
has the required resources to provide the services detailed in
the RFP
.
New services may be added from time to time as per the instructions of
the Bank and with mutual consent.

4.5.

Bank reserve the right to add
up additional

locations where CSPs/BCAs
are to be set up
either in
R
ural

/ Semi
-
Urban / Urban locations.

4.6.

The Service Provider assumes complete responsibility and provides an
end
-
to
-
end solution
for extending FI implementation,
consisting of
appointment of BCAs and imp
arting training, establishing CSPs,
Bid Ref. No.
KVGB
/
H
O:FID/
2013

dated
October 24
, 2013

Page
10

of
98

customer enrolment including capture of customer photo and
biometrics, opening of accounts, FI Serv
er

application, conduct customer
transactions,

seeking authentication from Bank’s FI Gateway,

cash
management for extendi
ng FI
S
ervices, reconciliation

with Bank’s Host
,


MIS and Control reports etc.

4.7.

The number of CSP outlets to be offered to identified L1 Bidder under
Smart Card Technology and is at the sole discretion of the Bank.
B
ank
does not guarantee any minimum number

of CSP outlets under each
technologies

and
Bank’s decision in this regard is final and binding
on
the Bidders.

5.

ELIGIBILITY CRITERIA

The RFP aims at engaging the Se
rvice Provider to offer services
in the
Area of
Operation to be informed by the Bank
.

Bids s
atisfying the eligibility criteria
mentioned below
will
only
be considered for evaluation.

Sl.No.

Criteria

Supporting Documents
required as Proof to be
submitted.

Bidder to
mention
Page no. of
document
submitted

1.


Bidder should be a registered
company in India under
Companies Act 1956 and
should have been in operation
for at least Three years as on
the date of RFP.

Copy of the Certificate of
Incorporation and
Certificate of
Commencement of
Business.


2.


Bidder should have

a)

A

minimum Turnover of
Rs.5 crore in

any
two
of the

three

previous financial
years

(2010
-
11, 2011
-
12,
2012
-
13)
and
;


b)

Positive Networth during
any two of the three
previous financial years
(2010
-
11, 2011
-
12, 2012
-
Audited Financial
Statements for the
previous three years of
the Bidder and that of
Parent/Holding
Company
for

previous three years,
wherever applicable.

Pr
ovisional Financial
Statement for 2012
-
13 is
acceptable, if not audited
so far.


Bid Ref. No.
KVGB
/
H
O:FID/
2013

dated
October 24
, 2013

Page
11

of
98

Sl.No.

Criteria

Supporting Documents
required as Proof to be
submitted.

Bidder to
mention
Page no. of
document
submitted

13)
.


In case of a
wholly owned
subsidiary, the turnover of
parent/holding Company will
be taken into consideration.




In case of Contributions
from Foreign &

Indian
agencies; or Grants and
Donations; or
Commission on Insurance
activities or IT Enabled /
infrastructure services
etc., if any received by
the Bidder, substantiate
as to how such receipts
qualify for the RFP
towards financial
strength.

3.


a)

The bidder should have
been a Service Provider for
providing FI solution (such
as EBT, DBT, Aadhaar based
Payment etc.)
using either
Smart Card Technology
for
a

Private Sector Bank or a
Public Sector Bank for a
minimum period of 12
months.

b)

The solution s
hould have
been implemented in at
least in
100

locations in
India

successfully
.


Letter from the
concerned
Private /
Public sector Bank
confirming successful
implementation of FI
project
, conforming to
criteria,

with
the
following details:



Name of the
B
ank



Number of Locations



Type of Technology



Scope of Project



Name of the
contact
person

with
designation, contact
number, fax, address,
e
-
mail id etc.,


Note : B
ank reserves
it’s


Bid Ref. No.
KVGB
/
H
O:FID/
2013

dated
October 24
, 2013

Page
12

of
98

Sl.No.

Criteria

Supporting Documents
required as Proof to be
submitted.

Bidder to
mention
Page no. of
document
submitted

right to inspect such
installations
as a part of
the evaluation process.

4.


Bidder should have strong
organizational strength to
undertake and execute large
FI
projects
.


Documentary proof

of
projects executed


5.


Bidder should be capable of
providing full services as per
Annexure
-
I

Bidder to furnish brief
write up to prove that he
has capability to provide
full services as per
Annexure
-
I.


6.


Neither the bidder nor its
promoters and Directors
should be defaulters to any
financial institution. The bidder
should not have been reported
a
gainst by any Public Sector
Bank to Indian Banks’
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Bidder is willing to take up
additional locations
for FI

implementation to the extent
of 50%, over and above the
quantities mentioned in the
RFP,

within our service are
,

at
the same
C
ommercials

and
Terms and conditions
being
finalized
in this
RFP
.

Unde
rtaking letter as per
Annexure
-
X
II


Bid Ref. No.
KVGB
/
H
O:FID/
2013

dated
October 24
, 2013

Page
13

of
98


6.

CONSORTIUM ARRANGEMENTS

6.1.

Consortium arrangements are not permitted under this RFP and Bidder
/ Service Provider is solely responsible for extending an end
-
to
-
end
solution for implementation of the
FI
project.


6.2.

The service provider may have a back to back a
rrangement with
a
BC
organization
, satisfying the ‘Eligible Entities and General Guidelines’
mentioned in the Annexure
-
V.


6.3.


The service provider will be the ‘Single Point Contact’ for the Bank.


7.

TARGET GROUP

7.1.

Bank is planning to extend ICT
-
BC based outlets
in
about
1000

locations covering
Sub
-
Service Area
villages

and Urban clusters
.
The Bank would
, at it’s discretion,

implement similar solution at
additional
locations
at a future date.


7.2.

The scope of the current project, being one of the ICT
-
BC based
banking channels, may extend to all or some of the envisaged
locations
depending on the performance. Bank may extend
services to other areas as well under this project. The aforesaid
figures a
re only indicative and the actual numbers may vary.


7.3.

It is proposed to cover all the households of the aforesaid
Areas of
Operations
using
S
mart

card
technology
within a defined
timeframe.


7.4.

The geographic locations that fall within the scope of this proje
ct
can span over rural, semi
-
urban
and
urban areas.


8.

COMPLIANCE REQUIREMENTS


8.1.


The entire activity under this solution would be guided by and
conform to policies and guidelines of the Bank,

GOI,

RBI,

UIDAI,

IDRBT,

IBA,

State Govt/s.

8.2.


Smart
-
card specifications,
Hand Held
Devices

(POS/POT/HHM),
Key
-
Management system , specifications for interoperability, etc.
,

would conform to IDRBT’s latest version of “Open Standards for
Bid Ref. No.
KVGB
/
H
O:FID/
2013

dated
October 24
, 2013

Page
14

of
98

Micro
-
ATMs
”, the details of which are available in NPCI / IBA /
IDRBT websites
.
Present version for Micro
-
ATM standards is 1.5.1.

8.3.


Biometric standards would comply with RBI’s “Report of the
Working Group on Standards for Raw Images of Finger Prints”

and
also conform to ISO standards 19794
-
2 and 19794
-
4
.

8.4.


Information Se
curity standards for end
-
to
-
end solution would
conform to ISO 27001, CERT
-
In guidelines, IT Act 2000, RBI, GOI,
IBA, IDRBT and Bank’s policies
.

8.5.


The business practices, processes adopted for rendering services,
maintenance of records, accounting norms & pr
ocedures etc
.,

for
Banking and Financial services shall conform to regulatory, legal
and bank’s policies and guidelines.

8.6.


Customers enrolled under the project shall meet “Know Your
Customer” norms as stipulated by the Bank.

8.7.


Accounts, transactions, service
s, controls, etc
.,

related to banking
and financial services should integrate with Bank’s Core
-
Banking
system
.

8.8.

The solution should conform to and integrate with micro
-
ATM
s

and mobile
-
banking solution proposed by Inter
-
Ministerial Group
recommendations for
Financial inclusion.

8.9.

The solution should conform to and integrate with UIDAI/NPCI’s
directions on Financial Inclusion / Direct Benefit Transfer.

8.10.

Bidder should ensure that in addition to security features
deployed, controls and operational procedures should

ensure
protection of the bank from loss, disclosure or frauds.

8.11.

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 b
y
employees, customers, agents, external entities, etc).

8.12.

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.

8.13.

B
idder 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.

8.14.

Bidder shall assist the Bank in identifying potential r
isks in the
solution, remedy any of the identified risks, develop strategies to
Bid Ref. No.
KVGB
/
H
O:FID/
2013

dated
October 24
, 2013

Page
15

of
98

measure, monitor and mitigate those risks and implement new
controls.

8.15.

Bidder shall maintain adequate documentation, records, audit
trails, etc
.,

and cooperate with RBI/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.

8.16.

Financial Exposures & Performance risks from t
hird
-
party service
providers under the project would be regulated and mitigated
through Financial Guarantees, Collateral Securities, etc
.,

based on
risk perception of the Bank.

8.17.

Micro
-
ATMs and/or Hand Held Devices should also support
Rupay
transactions
, in

addition to Smart Card transactions.


9.

RESPONSIBILITIES OF THE BIDDER


9.1.

Bidder shall be responsible for end
-
to
-
end solution covering the
entire scope of this RFP and shall assume the role of Systems
Integrator

with a Single point of contact for the Bank
.

9.2.

The roles and responsibilities of the Bidder will also include those
stated in greater detail in other parts of RFP.

9.3.

Bidder shall provide an end
-
to
-
end solution

using Smart card
Technology
which
includes services

like integration of various
technological a
nd functional components, supporting
organizational structures and skilled human resources to educate,
facilitate and deliver financial services to the targeted customers,
apart from technological solution and technical services.

9.4.

Bidder shall be responsibl
e for compliance with mandatory
compliance requirements indicated in the section “Compliance
Requirements” and at various specific requirements indicated in
other parts of the RFP;

9.5.

indemnifying the bank of risks indicated in the section
“Indemnity” and

spe
cific requirements indicated in other parts of
the RFP;

9.6.

Bidder shall act as the single point of contact for the Bank.

9.7.

Bidder shall be responsible to resolve all issues that may arise
from the end
-
to
-
end solution

9.8.

Bidder shall also man and manage all the in
cidental activities
related to the scope of the RFP.

Bid Ref. No.
KVGB
/
H
O:FID/
2013

dated
October 24
, 2013

Page
16

of
98

9.9.

Bidder to provide
details of BCA
s

along with the photograph
to
host on
Bank’s
website
.

9.10.

Bank will enter into a detailed agreement with the Bidder clearly
defining the roles and responsibilities and the te
rms of
engagement for the infrastructural support and services extended
to the bank as per the format prescribed by the Bank.

9.11.

Render banking and financial services as entrusted by the Bank
under BC model at designated locations to all the customers of
Bank
, duly complying with Bank, RBI, IDRBT, IBA, NABARD, GOI,
State Govt
.

guidelines.

9.12.

Bidder shall provide well trained personnel and extend necessary
mentoring and operational support to the intermediary network
of agents, etc.

9.13.

Bidder shall confirm that every

person deployed by them on the
project has been vetted through

third
-
party background check
prior to their engagement.

9.14.

Bidder shall manage the activities of its personnel or others
engaged in the project etc
.,

and will be accountable for all the
personnel deployed/engaged in the project.

9.15.

In case the performance of the Business Correspondents, their
agents or personnel engaged in the project is not satisfactory or is
detrimental to the interests of the Bank, th
e Bidder shall have to
replace the said person within the time limits stipulated by the
Bank.

9.16.

No right to employment in the Bank shall accrue or arise, by virtue
of engagement of employees, agents, contractors, subcontractors,
etc of the bidder for any ass
ignment under this project.

9.17.

Bidder will exercise due diligence and only engage persons having
established identity, integrity, requisite qualifications and skills
and deployment experience for all critical activities.

9.18.

Bidder will involve designated offici
als of the Bank in selection
process
of BC

agents.

9.19.

Cash Management is the sole Responsibility of
Service Provider

and funding will
not
be done by the Bank.

9.20.

Bidder to extend all of the outsourced banking and financial
services by deploying such personnel th
at have high integrity and
meet the qualifications and other criteria stipulated by the
Reserve Bank of India, Government or the Bank from time to time.


10.
TECHNICAL DELIVERABLES

Bid Ref. No.
KVGB
/
H
O:FID/
2013

dated
October 24
, 2013

Page
17

of
98


10.1

The Bidder shall provide hardware, software, personnel, technical
services, connectivity; maintenance, provide training and
operational support for the end
-
to
-
end infrastructure including
handheld devices, enrollment system, digital fingerprint scanners,
digital cameras, printers, intermediate switching, backend Banking

software, etc.

10.2

Terminal
s deployed
at the customer contact point shall support
S
mart

cards

/ RuPay cards (Including cardless operations)
,
biometric
-
based (finger print) authentication, redundant power
sources for continuous operation, mobile and easy to ca
rry, voice
guidance in the local language, ability to support multiple products
and services, receipt

printing, etc.

10.3

The solution should also be able to support a model that does not
require issue of a smartcard where the authentication would be
based on t
he biometrics stored on the handheld banking terminal
or held on a remote Authentication server.

10.4

The proposed solution may be rolled out to cover various other
products & services to other customers as well, in any part of the
country, as may be identified

by the Bank.

10.5

The solution should have adequate provision to support marketing
of Bank’s other products such as deposits, loans, fee
-
based
products such as insurance premium, remittances, etc
.


10.6

Bidder shall ensure that this solution is based on a reliable

and
scalable architecture so as to handle higher volumes and at larger
number of locations all over India. Bidder shall supply
S
mart cards
or Mobil
-
Id cards
as required by the Bank for the project.

10.7

Bidder shall undertake Personalization of cards, Card Man
agement
System and Key Management using Bidder’s own assets and
personnel.

10.8

Bidder shall Supply, Maintain and Operate handheld devices,
support equipment and application software that can support
online transactions, other operations at the BCO.

10.9

All the ha
rdware, software, consumables, etc at the BCO would be
to the cost of the Bidder.

10.10

Bidder shall provide services of an Intermediate System
or FI
Server
(supporting functions like Card Management, BC
Management, Banking Terminal/handheld device Management,
Switching, MIS Solution, etc) that is owned, maintained and
managed by the Bidder, that is capable of handling
Bid Ref. No.
KVGB
/
H
O:FID/
2013

dated
October 24
, 2013

Page
18

of
98

transactions/Customer enrolment data in online modes from a
large number of devices deployed in this project

10.11

Bidder shall provide interface an
d establish connectivity between
front end system and Intermediate System and also
Bank’s

FI
gateway.

10.12

The architecture should meet industry standards, reliability,
scalability, interoperability and conform to best practices that
minimize costs and risks t
o the Bank.

10.13

Bidder shall supply infrastructure at their own cost and operate
the solution on behalf of the Bank. Bank may at a future date
seek transfer of ownership of the solution to the bank if it so
desires.

10.14

Bidder shall own and operate entire infra
structure including the
front
-
end systems, the intermediary switching solution and card
management system, etc.

10.15

Bidder shall provide devices required at the villages for
enrollment, registration, point
-
of
-
transaction such as printer,
finger
-
print scanner
, camera, back
-
up power /batteries, spares,
software, technical training, user training, technical
documentation, training materials, etc.

10.16

Bidder shall provide hardware, software, facility management, and
secure environment for supporting the end
-
to
-
end so
lution and
functionality stipulated in the RFP.

10.17

Technical specifications of various components involved in the IT
solution are dealt with in greater detail in subsequent sections.

10.18

Bidder shall ensure that the service is rendered in a manner that is
comprehendible
i.e.
simple and easy to understand to the
customer and conduct of the agents would encourage and
promote customers to use Bank’s services.

10.19

Bidder will have to deploy the so
lution at the designated locations
within the time period specified for the purpose.

10.20

Bidder shall ensure that faulty front
-
end equipment should be got
repaired or replaced within 24 hours of reporting.

10.21

Adequate number of spare machines / batteries, etc
.,

s
hould be
maintained by Bidder for immediate replacement.

10.22

The detailed technical requirement/specifications/services to be
provided is mention
ed under Annexure
-
I and Annexure
-
II
.

10.23

Bidder shall submit a copy of the database backup maintained on their
FI/Inte
rmediary server, alongwith database schema, password
Bid Ref. No.
KVGB
/
H
O:FID/
2013

dated
October 24
, 2013

Page
19

of
98

credentials etc., to access the database at regular intervals as stipulated
by the Bank


11

FUNCTIONAL
AND TECHNICAL
REQUIREMENTS

11.1

The solution shall support both online and offline transactions

in
case of Smart Card Technology.

11.2

Transactions are authenticated using finger print templates stored
on Smart Card / Bank’s Central Biometric Authentication Server /
UIDAI.

11.3


The solution provided by the Bidder

together with the human
resources shall be able to support
basic banking services like
Deposit, Withdrawal, Balance enquiry, Mini Statement, Remittance
etc., Extending KCCs, GCCs
, account management, financial
literacy
,

electronic benefit transfer,
direct
benefit transfer
etc.

11.4

Detailed functional requirements are enumerated in Annexure
-
II
.


12

ARCHITECTURE IN BRIEF

12.1

The architecture includes [
Hand Held D
evices like
Hand Held
M
achines, etc.

supporting RuPay cards as well
]
, FI/Intermediary
Server
of the Bidde
r
to be installed at Bank’s DC/DR sites and Core
Banking System (CBS) installed again at Bank’s DC/DR sites.

12.2

Fi
el
d devices
, conforming to open standards released by
IBA/NPCI/IDRBT (presently Micro
-
ATM standards version 1.5.1),

are driven by the
FI/intermediary
Server
of the Bidder with
connections like
GPRS, GSM, CDMA etc., and the
FI/Intermediary
Server is connected to Bank

s FI Gateway which i
n

turn is
connected to CBS of the Bank.

12.3

FI Gateway has also a sub
-
module viz., Central Biometric
Authen
tication Server (CBAS) wherein all biometrics of the
enrolled customers, conforming to ISO19794
-
2/19794
-
4 standards,
are maintained and the same are used for authenticating customer
initiated transactions through the field devices.

12.4

The architecture envisag
es
Offline and Online transactions with
Smart Card Technology. In Online mode,
all Transactions are
A
uthenticated online, Suitable accounting entries passed at Bank’s
CBS Host, Respond back in ISO messaging format with requisite
response code to fi
eld

devi
ces. Thus customer transaction is
completed with accepting / withdrawal of the cash, as the case
may be. In case of un
-
successful transactions during the above
process, ISO message includes requisite response code indicting
Bid Ref. No.
KVGB
/
H
O:FID/
2013

dated
October 24
, 2013

Page
20

of
98

the reason for un
-
successful re
turn of the transaction

.
In offline
mode transactions are authenticated based on biometrics stored
on smart cards and transactions are pushed to Bank’s host as soon
as the connectivity is restored.

12.5

The FI/Intermediary sever of the Bidder seeks the authent
ication,
in online mode, from Central Biometric Authentication Server of
the Bank or from the remote server like through NPCI/UIDAI.


13

BID PROCESS


GENERAL TERMS


13.1

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
Annexures etc.,
while submitting the response.

13.2

All responses sho
uld be in English language. All responses by the
Bidders to this RFP document shall be binding on such Bidders for
a period of
One year
from the date of opening Technical Bid.

13.3

All responses including commercial and technical bids would be
deemed to be irre
vocable offers / proposals from the Bidders and
may, if accepted by Bank, form part of the final contract between
Bank and Bidder.

13.4

Any bid submitted cannot be withdrawn / modified after the
closing date and time for submission of the bid offers unless
spec
ifically permitted by Bank.

13.5

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 and responded to by the Bidders, the same shall be
deemed to be provided by the Bidder at no
extra cost to Bank.

13.6

All out of pocket expenses,
traveling
, boarding and lodging
expenses for the entire life of the contract should be a part of the
commercial 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.

13.7

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 schedule
s, timeframe for
implementation etc. as mentioned in RFP documents.

13.8

By submitting a proposal, the Bidder agrees to promptly contract
with Bank for any work awarded to the Bidder.

Bid Ref. No.
KVGB
/
H
O:FID/
2013

dated
October 24
, 2013

Page
21

of
98

13.9

This RFP or clarifications or writings issued pursuant thereto shall
not be c
onstrued as an obligation on the part of Bank to award a
purchase contract for any services or combination of services.

13.10

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

13.11

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 assign
ing any reason by
notifying in the Website / displayed on the Notice Board.

13.12

To assist in the scrutiny, evaluation and comparison of offers, Bank
may, at its discretion, ask any of Bidders for clarifications to their
offer.


14

SUBMISSION OF BIDS

14.1

A duly autho
rized signatory of the Bidder under seal should
authenticate all pages in the Bid. The signatory wherever
necessary should submit a copy of the Power of Attorney / Board
Resolution / letter from Director(s) or other relevant document
authorizing him/her t
o sign the above bid documents on behalf of
the Bidder. Responses submitted by a Bidder to this RFP represent
a firm offer to contract on the terms and conditions described in
the Bidder’s response. The proposal in original (hard copy) will be
accepted. N
o photocopy/ email of the proposal will be accepted.


14.2

The technical bid should be submitted in hard copy (along with a
soft copy) as per
Annexure
-
VI

(along

with other Annexures
mentioned therein) in sealed envelope, superscribed as “Technical
Bid” along wi
th
Bid Security
,
DD towards
cost of the Bid and offer
covering letter as per
Annexure
-
X
I

to this RFP within the time
stipulated in the RFP.


14.3

The bidder has to submit the commercials in separate sealed
envelope
.


14.4

Bidder’s confirmation of Bank’s requirements should be
categorical. Violation of these requirements will disqualify the
bidder. Failure to provide information called for or vague response
Bid Ref. No.
KVGB
/
H
O:FID/
2013

dated
October 24
, 2013

Page
22

of
98

shall constitute violation of the Bid terms and such bids shall be
s
ummarily rejected.


15

DEADLINE FOR SUBMISSION OF BIDS


15.1

Bids should be received by the Bank at the address specified, not
later than the date and time specified. Any Bid received after the
deadline for submission of Bids prescribed, will be rejected and

returned unopened to the Bidder.


15.2

The Bank may, at its discretion, extend this deadline for
submission of Bids by amending the Bid Documents, in which case,
all rights and obligations of the Bank and Bidders previously
subject to the deadline will thereaf
ter be subject to the deadline
as extended
.


15.3

The offer made under the Bid may not be evaluated by the Bank in
case of non
-
adherence to the format or partial submission of
details as per the format. The Bank shall not allow/permit changes
in the Bid once th
e Bid is submitted. All relevant details that the
Bidder wishes to include in its bid should be submitted along with
the offer. Failure to submit this information along with the offer
shall result in disqualification.


15.4

The Bidder shall bear all costs assoc
iated with the preparation and
submission of its Bid and Bank will in no case be responsible or
liable for these costs, regardless of the conduct or outcome of the
Bidding process.


15.5

The Bid shall be typed or written in indelible ink and shall be
signed by
the Bidder or a person or persons duly authorized to
bind the Bidder to the Contract. The person or persons signing the
Bids shall initial all pages of the Bids, except for un
-
amended
printed literature. Also, all pages of the Bid submitted should be
seria
lly numbered like Page 1 of xx or 1 / xx where xx is the total
number of pages of the Bid.


15.6

Any inter
-
lineation, erasures or overwriting shall be valid only if
they are counter
-
signed by the person signing the Bids. The Bank
reserves the right to reject bi
ds not conforming to above.

Bid Ref. No.
KVGB
/
H
O:FID/
2013

dated
October 24
, 2013

Page
23

of
98


16

VALIDITY OF BIDS


16.1

Bids shall remain valid for one year from the date of opening of
the Bid. A Bid valid for a shorter period may be rejected by the
Bank as non
-
responsive.


16.2

In exceptional circumstances, Bank may seek Bidders’ c
onsent for
extension of the period of validity. The request and response
thereto shall be made in writing. Retention of
Bid Security
shall
also be suitably extended. A Bidder may refuse the request
without forfeiting its Earnest Money Deposit.



17

BID SECURT
Y


17.1

The Bidder will have
to submit Bid Security in the Form of a Bank
Guarantee, as per Annexure
-
XI
I
I
, issued by a scheduled bank in
India, for
Rs.
3
,
5
0,000/
-

(Rupees
three

Lakh
fifty thousand
only)
valid for period of one year from the date of RFP.


17.2

The
Bid security
will be refunded to the unsuccessful bidders on
completion of the bid process within a month.


17.3

The Bid security of the successful bidder will be retained
till the
successful bidder signs
Service Level

Agreement with bank and
submits the secur
ity deposit/performance guarantee as per the
requirements of bank.
The security deposit/performance
guarantee will be
10% of the contract value.


17.4

The
Bid security
may be forfeited:

17.4.1

If a Bidder withdraws or amends its Bid during the period of Bid validity
specified; or

17.4.2

If a Bidder makes any statement or encloses any form which turns out
to be false/incorrect at any time prior to signing of Contract; or

17.4.3

In the case of a successful Bi
dder, if the Bidder fails

to
:

(i)

S
ign the
Service Level

Agreement(s) with the Bank within a
period of 90 days; or

Bid Ref. No.
KVGB
/
H
O:FID/
2013

dated
October 24
, 2013

Page
24

of
98

(ii)

F
urnish Security/Performance Guarantee to the Bank.

18

TECHNICAL AND COMMERCIAL BID


18.1

The technical Bid should provide complete details sought in t
he
Annexure
-
VI

of this RFP.


18.2

The Bidder
has to invariably
submit the

Compliance,
and details

of
Deviation
, if any, relating to both Commercial and Technical
requirements. It is deemed that Bidder has complied with all the
commercial and technical requirem
ents of the RFP, except those
mentioned in the ‘Statement of
Completion /
Deviation’ which

is part of
the Technical Bid Form
.

18.3

If the deviations mentioned by the Bidder, in the opinion of the Bank,
are minor in nature
, Bank

will take them into account and proceed with
the evaluation of the Bid. On the contrary, if the deviations are not
acceptable to the Bank, the Bid response submitted by the Bidder will be
treated as Non
-
responsive
,
rejected

and
will not be considered for
further
e
valuation
.

18.4

The bidder would be paid fixed charges specified in
Annexure
-
III

for the
services mentioned therein. The bidder would be required to offer the
commercial bid for
cost of Smart Card and
cash handling services. The
rate quoted by the Bidd
er should be inclusive of all
applicable
taxes,
duties and levies
,

except Service Tax which will be reimbursed by the
bank on actual basis
,
for the services proposed to be offered.

19

OPENING OF BIDS AND SELECTION OF SERVICE PROVIDER

19.1

The technical bids of Bidders who have furnished the
Bid Security
of
Rs.
3
,
5
0,000/
-

will be opened in the presence of authorized
representatives of the Bidders at
Karnataka Vikas Grameena Bank
,
Head

Office,
Dharwad



580008

on the date and time specified
under
paragraph
3.2
of the time schedule

,
even if

the representative of any
bidder does not turn up at the specified time.

In case, the venue, date
and time of opening is modified for any unavoidable circumstances, the
details of the same will be informed
to the Bidders.

19.2

The Bidders’ names, withdrawals and the
submission or otherwise of the
Bid security
,
DD towards
Cost of Bid and such other details as the Bank,
at its discretion, may consider appropriate, will be announced at the
time of Bid opening. No bi
d shall be rejected at bid opening, except for
late bids, which shall be returned unopened to the Bidder.

Bid Ref. No.
KVGB
/
H
O:FID/
2013

dated
October 24
, 2013

Page
25

of
98

19.3

The Bank will undertake evaluation of
technical bids
starting with
examin
ation of

the Bids to determine whether documents are complete,
are in the req
uired formats
,

documents properly signed and the Bids are
generally in order.

19.4

The
Bank
, at its discretion,
may
waive any minor infirmity, non
-
conformity, or irregularity in a Bid, which does not constitute a material
deviation.

19.5

The
Bank
will examine wheth
er the Bid and the Bidder is eligible in terms
of the Eligibility Criteria specified in
the RFP
and the decision of the Bank
shall be final and binding on all parties.

19.6

During evaluation of the Bids,
Bank
, at its discretion, may ask a bidder
for clarificati
on of its bid. The request for clarification and the response
shall be in writing, and no change in the price or substance of the bid
shall be sought, offered or permitted.

19.7

Evaluation of technical bids will be
taken up
with
regard to

meeting
requirements towards eligibility criteria followed by evaluation of the
technical
parameters mentioned in the bid
. B
idders who attain a
minimum of 75% marks
, as per Annexure
-
VIII
,

only will be qualified for
further processing.
The bidders who qua
lify in the technical bid will be
short

listed

for commercial evaluation.


19.8

L
-
1 bidder will be determined on the basis of the lowest price quoted in
the
bid
.

Following criteria will be adopted for identification of L1 Bidder
under Smart Card Technology.


19.8.1

If

there is only one technically qualified bidder, then Bank may
not proceed with further evaluation process for that technology.

19.8.2

If there is only one technically qualified bidder, then the RFP
process will be terminated.

19.8.3

FI implementation will be done in
a phased manner.


19.9

The rates quoted by the Service Provider will be valid for three years.

19.10

The bank
may

invite the bidders as part of the evaluation process, for a
presentation of bid response before the
Bank
. The date and time for
such presentation shall
be informed to the bidders in due course.

20

C
ONTACTING THE
B
ANK

Bid Ref. No.
KVGB
/
H
O:FID/
2013

dated
October 24
, 2013

Page
26

of
98

No Bidder shall contact the Bank on any matter relating to its Bid, from the
time of opening of Bid to the time the Contract is awarded. Any effort by a
Bidder to influence the Bank in its
decisions on Bid evaluation, Bid comparison
or contract award may result in the rejection of the Bidder’s Bid,

including
forfeiture of the Bid Security
.

21

BANK’S RIGHT TO ACCEPT ANY BID, REJECT ANY OR ALL BIDS

21.1

The Bank reserves the right to accept or reject
any Bid /offer received in
part or in full, and to cancel the Bidding process and reject all Bids at any
time prior to contract of award, without thereby incurring any liability to
the affected or Bidder or Bidders or any obligation to inform the affected
Bidder or Bidders of the grounds for the Bank’s action. Bank reserves the
right to reject any Bid on security and/or other considerations without
assigning any reason.

21.2

Bank reserves the right to cancel the entire Bidding/procurement
process at any stage w
ithout assigning any reason whatsoever.

22

TERMS AND CONDITIONS FOR THE PROPOSAL

22.1

The following terms and conditions underline the terms of this RFP and
provide the understanding between the interested parties.


23

LIABILITIES OF THE BANK

23.1

This RFP is not an
offer by the Bank, but an invitation for bidder
’s

response. No contractual obligation whatsoever shall arise on
the
Bank
from the RFP process
,

unless and until a formal contract is signed
and

executed by duly authorized officers of the bank and the bidd
er.


24

PROPOSAL PROCESS MANAGEMENT

24.1

The Bank reserves the rights to amend, modify, add, delete, accept or
cancel, in part or full, any condition of the RFP without assigning any
reason there for at any time during the process. Each bidder shall be
entirely
responsible for the costs and expenses incurred while
participating in the bid.

25

PROPOSAL FORMAT

25.1

As the bidder’s proposal is central to the evaluation & selection process,
it is important that the bidder carefully prepares the proposal as per the
Bid Ref. No.
KVGB
/
H
O:FID/
2013

dated
October 24
, 2013

Page
27

of
98

prescribed

formats only. Under no circumstance, the format can be
changed, altered or modified. There should be no hand
-
written material,
correction or alteration in the offer. Bidders must provide categorical
and factual replies to specific questions. Bidders may
provide additional
technical literature relating to their proposals but in a separate
annexure. Correct and current technical details must be completely
filled in.
A
nnexure
s of
this RFP form integral part of the RFP.

26

OWNERSHIP

26.1

The RFP and all supporting
documents are the sole property of the Bank
and violation of the terms of this RFP will be a breach of trust and breach
of the initial contract conditions and Bank has a right to initiate any
action deemed appropriate. The proposal and all supporting
docum
entation submitted by bidders shall become the property of the
Bank. Unopened bids will be returned to bidders.

27

CONTRACT / SERVICE
LEVEL
AGREEMENT

27.1

Upon completion of the selection process,
B
ank shall arrange to enter
into
an
agreement with the Service
Provider who shall agree to the
terms and conditions stipulated by the Bank
.

27.2

A
Service Level A
greement format
is placed as
Annexure
-
X
IV
. The Bank

will facilitate execution of contract
with the
Service Provider.

28

PENALTY FOR DELAY

28.1

Without prejudice to B
ank
’s

ri
ght to terminate the agreement, for any
defective service or inability to provide the service for any reason or for
non
-
functioning of the CSP for any reason, beyond
10

(
Ten
) working days
continuously, a penalty

@ Rs. 500/
-

per day (from the 11
th day
onwards)
will be levied for each of the Customer Service Point from the BC.

29

REVIEW OF SERVICES

29.1

The performance of the Service Provider will be reviewed, every month
initially, and thereafter at such intervals as the bank may decide

to
identify the bottle
necks and to initiate remedial measures
. The bank
reserve
s

the right to terminate the contract at any point of time if,

a.

S
ervices are found to be unsatisfactory;

b.

There is a consistent failure to maintain the customer satisfaction;

c.

Desired levels of output
by the Service Provider are not met;

Bid Ref. No.
KVGB
/
H
O:FID/
2013

dated
October 24
, 2013

Page
28

of
98

d.

There is a discrepancy found in the accounts maintained by the
Service Provider and the records of the Bank;

e.

The customers serviced by the Service Provider complain to the Bank
that the Service Provider is inefficient;

f.

There is fraud in the accounts handled by the Service Provider; or

g.

If the NPAs in the loans sourced by BCA are abnormally high, that is,
the percentage of NPAs in the loans sourced by the BCA is higher
than the Gross NPAs of the branch.

h.

Any other
reason which in the opinion of the bank is not conducive to
the continuation of the Services of the Service Provider.


The Bank shall have the discretion to switch implementation at Sub
-
Service Area level, to other technologies, business models etc., based

on
it’s convenience, availability of infrastructure, connectivity etc.

29.2

However
, before terminating the contract, a written notice specifying
the defects in services to the Service Provider
will be served
and ask him
to rectify the defects within a period of 30 days. In case the defects are
not rectified, the contract with the Service Provider will be terminated.
Further, Bank shall also evaluate the performance of the Service
Provider and if it is found th
at the performance is not satisfactory on any
point mentioned above, that Bank shall be at liberty to terminate the
contract after giving a notice of 30 days.

29.3

It is expected that each BCA will enroll at least 25% of target households
in the area of operat
ion within six months of starting the activity

subject
to a minimum of
300
enrolments
in the first year of operation. Accounts
if any migrated from existing BC/BCA will also be counted for the
purpose of meeting this target. However, no payment will be mad
e
towards this acquisition. It is expected that BCAs are engaged and are
activated in the villages
coming under the respective Sub
-
Service Areas
within six months of award of contract. Shortfall of more than 20% in
achieving the

target will result in the s
ervices being treated as
‘unsatisfactory’.

29.4

The Bank shall not be liable for the acts and commission of the BCA
engaged by the Service Provider. The Service Provider is responsible for
compliance of all applicable laws and regulations in relation to the BCA

Bid Ref. No.
KVGB
/
H
O:FID/
2013

dated
October 24
, 2013

Page
29

of
98

engaged by them and the BCA engaged by the SP shall not be eligible to
claim any benefit or fee or charge from the Bank. The Service Provider is
responsible for all performance of obligations under the agreement and
the Bank shall have no obligation towar
ds the BCA engaged by the
Service Provider.

30

PAYMENT

TERMS

30.1

Payment will be made by the Bank on monthly basis in arrears on
aggregated basis within 20 days on submission of invoices by the Service
Provider.

30.2

Payment will be made for the enrollments
completed in all respects i
.
e
.

demographic data, photo and biometrics with CBS account number.
Payment for transactions will be done for all the transactions excluding
accommodative transactions. No payment will be done for balance
enquiry.

30.3

The Service P
rovider is eligible for Fixed charges (Annexure
-
III) and
Variable Charges (Annexure
-
IV) and the amount to be shared with the
BCA is indicated therein.

30.4

The Service Provider will be paid a fixed
BC Charges

per month as
mentioned below

for each BCA/BC outlet
after the activation
, of which
70% is to be shared with the BCA
. The date of activation would be the
date of first transaction.
The fixed charges will be paid subject to the
condition that the BCA records
:

30.4.1

Rs 3000.00(Rupees three thousand only) per month

provided a
t
least
25

Enrolments per month and at least
25

transactions per
month

are performed
.

30.4.2

Rs 3500.00 (Rupees three thousand five hundred only) per
month provided a
t least
25

Enrolments per month and at least
50

transactions per month

are perform
ed.

30.5

The enrolments will continue till all eligible population are covered.

30.6

The Service Provider would authorize the bank to credit the amount
payable to BCAs
directly

to his account
.

Bid Ref. No.
KVGB
/
H
O:FID/
2013

dated
October 24
, 2013

Page
30

of
98

30.7

The
Service Provi
d
er

is eligible for fixed charges as mentioned unde
r
A
nnexure
-
III for various activities
;

and cash handling charges

under
Variable charges (Annexure
-
IV)
.
The service Provider
should pass on a
minimum of 30% of these charges to the BCA
. This is in addition to the
charges
under Clause
30
.4 above
.

30.8

The Servic
e Provider

shall be solely liable & responsible for compliance

of applicable Labor Laws in respect of its employees, agents and
representatives and in particular Laws relating to terminal benefits such
as minimum wages, Pension, Gratuity, Provident Fund, B
onus or other
benefits to which they may be entitled and the Bank shall have no
liability in this regard.

31

FORCE MAJEURE

31.1

The Service Provider or the Bank shall not be liable for default or non
-
performance of the obligations under the contract, if such
default or
non
-
performance of the obligations under this contract is caused by any
reason or circumstances or occurrences beyond the control of the
Service Provider or the bank, i.e. Force Majeure. For the purpose of this
clause, “Force Majeure” shall mean

an event beyond the control of the
parties, due to or as a result of or caused by act of God, wars,
insurrections, riots, earth quake and fire, revolutions, floods, epidemics,
quarantine restrictions, trade embargos, declared general strikes in
relevant i
ndustries, satellite failure, act of Govt. of India, events not
foreseeable but does not include any fault or negligence or carelessness
on the part of the parties, resulting in such a situation. In the event of
any such intervening Force Majeure, either p
arty shall notify the other in
writing of such circumstances or the cause thereof immediately within
five calendar days. Unless otherwise directed by the Bank, the Service
Provider shall continue to perform/render/discharge other obligations as
far as they

can reasonably be attended/fulfilled and shall seek all
reasonable alternative means for performance affected by the Event of
Force Majeure.

31.2

In such a case, the time for performance shall be extended by a period(s)
not less than the duration of such delay
. If the duration of delay
Bid Ref. No.
KVGB
/
H
O:FID/
2013

dated
October 24
, 2013

Page
31

of
98

continues beyond a period of 180 days, the Bank and the Service
Provider shall hold consultations with each other in an endeavour to find
a solution to the problem. Notwithstanding above, the decision of the
Bank shall be final a
nd binding on the Service Provider.

32

INDEMNITY

32.1

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
aga
inst 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:

32.2

Bank’s

authorized / bonafide use of the Deliverables and /or the Services
provided by Bidder under this RFP

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;



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 Bidder under this RFP;



claims made by employees or subcontractors or subcontractors’
employee
s, who are deployed by the Bidder, against Bank 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 Bidder under this RFP;



any or all Deli
verables or Services infringing any patent, trademarks,
copyrights or such other Intellectual Property Rights;



breach of confidentiality obligations of the Bidder contained in this
RFP;



willful negligence or gross misconduct solely attributable to the
Bi
dder or its employees or sub
-
contractors.

Bid Ref. No.
KVGB
/
H
O:FID/
2013

dated
October 24
, 2013

Page
32

of
98

32.3

The Bidder shall at its own cost and expense 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,
copy
right, trade secret, mask work or trade mark in the country where
the Deliverables and Services are used, sold or received.

33

CONFIDENTIALITY AND
NON
-
DISCLOSURE

33.1

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 RFP. 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
perso
n

33.2

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 Confide
ntial Information to any
other person.

34

JURISDICTION

34.1

All disputes would be subject to Indian laws and jurisdiction, and settled
at courts in
Dharwad
.


35

COMPLIANCE WITH STATUTORY AND REGULATORY PROVISIONS

35.1

It shall be the sole responsibility of the Service
Provider to comply with
all statutory and regulatory provisions while delivering the services
mentioned in this RFP.

36

TAXES AND DUTIES

36.1

The Service Provider shall be entirely responsible for all applicable taxes
,
duties, levies, charges, license fees, road p
ermits, etc
.,
except Service
Tax which will be reimbursed by the Bank on actual basis.

Bid Ref. No.
KVGB
/
H
O:FID/
2013

dated
October 24
, 2013

Page
33

of
98

36.2

Providing clarifications/particulars/documents etc. to the appropriate
tax authorities for assessment of tax, compliance with labour and other
laws, etc
.,

will be the responsibility of the Service Provider at his cost.

36.3

Tax deduction at Source
-

Wherever the laws and regulations require
deduction of such taxes at the source of payment, Bank shall effect such
deductions from the payment due to the Service Pro
vider. The
remittance of amounts so deducted and issuance of certificate for such
deductions shall be made by the Bank
,

as per the laws and regulations in
force. Nothing in the Contract shall relieve the Service Provider from his
responsibility to pay any
tax that may be levied in India on income and
profits made by the Service Provider in respect of this contract.



GENERAL MAN
A
GER

Bid Ref. No.
KVGB
/
H
O:FID/
2013

dated
October 24
, 2013

Page
34

of
98

ANNEXURE
-
I


SCOPE OF BASIC BANKI
NG PRODUCTS & SERVIC
ES TO BE OFFERED


1.

The Service Provider would be required to provide the services,
facilities, infrastructure, technology,
connectivity
etc.

2.

The Service Provider shall provide the services through BCA
/BCOs

engaged by the Service Provider. The Bank will prescribe the
number

of BCA
/BCOs

to be engaged in the area of operation. The
Bank will have the option of increasing/decreasing the number of
BC
As

up to
50
%. List of additional locations where BCOs are to be
established will be advised to the selected bidder by the bank
sepa
rately.

3.

The bank would further have the option of relocating or
discontinuing the
BCA/
BCO in areas where a bank branch gets
opened during the period of the contract.

4.

In areas where relocation of BCO is suggested due to opening of
bank branch, the BCO ma
y be allowed to continue if the bank and
the S
ervice
P
rovider

mutually agree that the BCO will still be
viable.

5.

It is essential that BCO has the required resources to provide the
service mentioned in this RFP. New services may be added from
time to time
as per the instructions of the Bank and with mutual
consent.

6.

This RFP covers

the total number of
locations mentioned in
Annexure
-
X

Bank reserves the right to add up
additional locations
upto 50
% where BCOs/BCAs are to be set up on the same
commercials.

7.

B
ank may, as part of their urban Financial Inclusion plans, consider
request from the selected Service Provider to set up BCOs in urban
locations

also.
Commercials for these urban locations will be
at
1
20%
of the charges indicated in Annexure
-
III (Fixed Cha
rges)
.

8.

Business Correspondent (BC) activities
:

a.

Enrollment of customers, including demographic data, photo,
collection of biometric and other documents of customers.


b.

Provide PIN/

Biometric based Smart Card

as decided by the
bank.


c.

Provide interoperable
transaction facility like

Bid Ref. No.
KVGB
/
H
O:FID/
2013

dated
October 24
, 2013

Page
35

of
98



Deposit of money in an account with the bank



Withdrawal of money from an account with the bank
including EBT/DBT payments.



Remittances from an account with a bank to an
account with the same or any other bank



Balance Enquiry and
issue Receipts/ Statement of
Accounts.



Disbursal of credit facilities to borrowers involving
small amounts strictly as per the instructions of the
Bank.


d.

Other activities:



Identification of borrowers and classification of
activities as per bank’s requireme
nts.



Collection and prima facie scrutiny of loan applications
including verification of primary data.



Creating awareness about savings and other products
offered by the Bank
,
education or advice on managing
money & debt counseling.



Preliminary scrutiny of
data and submission of
applications to the Bank for its review.



Promotion, nurturing, monitoring and handholding of
Self Help Groups and/or Joint Liability Groups and/or
Micro Credit Groups and others.



Facilitating the repayment of dues owed to the Bank by

its customers/guarantors.



Sale of third party financial products


e.

The above services are in respect of the following to be
offered at the BCO as a part of BC activity:



Savings Bank accounts



Recurring Deposit Accounts



Remittances



Fixed Deposit



Overdraft/Retail loan



KCC/GCC



Third party financial products
like Micro insurance etc.



EBT and DBT transactions

f.

Source

some the following products
for the branch
,
as
permitted by RBI guidelines

from time to time :

Bid Ref. No.
KVGB
/
H
O:FID/
2013

dated
October 24
, 2013

Page
36

of
98



Loans against TDR/NSC/ KVP etc.



General
purpose Credit card (GCC)



Kisan Credit Card (KCC)



Current Account



Savings Bank account (other than No Frills Account)



Term Deposits



Recurring Deposits



Mutual funds on a referral basis



Insurance (Life and Non
-
Life), Pension and any other
third party finan
cial product


g.

Subject to meeting the eligibility criteria mandated by RBI,
BC/BCA may be engaged as Recovery Agent and separate
agreement(s) will be signed by the bank with SP/BCA.


9.

Cash Management
:



The Service provider will
be
solely responsible for
the cash
management




The Service provider has to make his own arrangements for the
Cash requirements and Bank will not fund towards cash
requirements for the field operations.



The Service provider has to make arrangements for normal cash
requirement as pe
r the demand from each BCO location, apart
from meeting the season
al
/monthly/weekly requirements relating
to EBT and DBT on
across operation area of the Bank

basis.


Bid Ref. No.
KVGB
/
H
O:FID/
2013

dated
October 24
, 2013

Page
37

of
98

ANNEXURE
-
II

FUNCTIONAL REQUIREMENTS



1.

ENROLLMENT OF CUSTOM
ERS

1.1.

Bidder shall enroll
customers to various products using the same
solution. Customers may enroll themselves for several products
simultaneously or to different products at different points
-
in
-
time.
The Bidder should undertake enrollment to each of the products
(as may be requi
red by the Bank) as per the customers’ choice and
bank’s policy.

1.2.

Every customer in the target group will have at least a savings
bank account. Other schemes and banking products would also be
offered to customers of target
-
group based on the policy of the
bank. The savings Bank opened will have an inbuilt Overdraft
facility
, the limit of which is
parameterized
.

1.3.

Bank will entrust the process of enrollment to the Bidder. Bidder
may engage his representatives to carry out the operations duly
complying with Ban
k’s norm and other associated norms of
GOI/RBI/UIDAI/IDRBT/IBA/legal guidelines.