Karnataka Vikas Grameena Bank · 2018-10-16 · request for proposal for appointment of technical...

REQUEST FOR PROPOSAL FOR

APPOINTMENT OF TECHNICAL SERVICE PROVIDER CUM CORPORATE BUSINESS CORRESPONDENT FOR PROVIDING BANKING

SERVICES THROUGH BC PLATFORM

(RFP Ref. No. 96/KVGB/FI/KTB/2018 dated15.10.2018)

Karnataka Vikas Grameena Bank Head Office: Financial Inclusion Dept.

Belagavi Road DHARWAD – 580 008

(Telephone: 0836-2448626, Cell No. 9480699595, Mail: [email protected]) CONTENTS

1. PREAMBLE 2. DEFINITIONS 3. REQUEST FOR PROPOSAL 4. SCOPE OF SERVICE 5. ELIGIBILITY CRITERIA 6. CONSORTIUM ARRANGEMENTS 7. TARGET GROUP 8. COMPLIANCE REQUIREMENTS 9. RESPONSIBILITIES OF THE BIDDER 10. TECHNICAL DELIVERABLES 11. FUNCTIONAL ANDTECHNICAL REQUIREMENTS 12. ARCHITECHTURE IN BRIEF 13. BID PROCESS – GENERAL TERMS 14. SUBMISSION OF BIDS 15. DEADLINE FOR SUBMISSION OF BIDS 16. VALIDITY OF BIDS

mailto:[email protected]

RFP Ref. No. 96/KVGB/FI/KTB/2018 dated15.10.2018

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17. BID SECURITY 18. TECHNICAL AND COMMERCIAL BID 19. OPENING OF BIDS AND SELECTION OF SERVICE PROVIDER 20. CONTACTING THE BANK 21. BANK’S RIGHT TO ACCEPT ANY BID, REJECT ANY OR ALL BIDS 22. LIABILITIES OF THE BANK 23. PRODUCT PROCESS MANAGEMENT 24. PROPOSAL FORMAT 25. OWNERSHIP 26. CONTRACT/ SERVICE LEVEL AGREEMENT 27. PENALTY FOR DELAY 28. REVIEW OF SERVICES AND TERMINATION OF CONTRACT 29. EFFECT OF TERMINATION 30. PAYMENT TERMS 31. FORCE MAJEURE 32. INDEMNITY 33. CONFIDENTIALITY AND NON DISCLOSURE 34. JURISDICTION 35. COMPLIANCE WITH STATUTORY AND REGULATORY PROVISIONS 36. TAXES AND DUTIES

37. ANNEXURES : ANNEXURE-I SCOPE OF SERVICESOFFERED THROUGH BUSINESS CORRESPONDENT OUTLET BY SERVICE PROVIDER ANNEXURE-II FUNCTIONAL REQUIREMENTS ANNEXURE–III COMMISSION PAYABLE 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/BCA/BANK MITR ANNEXURE-X DETAILS OF BUSINESS CORRESPONDENT OUTLETS ANNEXURE-XI OFFER COVERING LETTER ANNEXURE-XII UNDERTAKING LETTER ANNEXURE-XIII FORMAT OF BANK GUARANTEE / BID SECURITY


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ANNEXURE-XIV SERVICE LEVEL AGREEMENT ANNEXURE-XV RULES FOR REVERSE AUCTION ANNEXURE-K-1COMPLIANCE STATEMENT FOR REVERSE AUCTION ANNEXURE-K-2 PRICE BID CONFIRMATION


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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 VikasGrameenaBank, having its

Head Office at Dharwad, District –Dharwad 580 008 in Indiahereinafter called

“Bank”, proposes 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 Technology. The Financial Inclusion (FI)

programs have a larger objective of offering a variety of financial services

ranging from Basic Savings Bank Deposit Account (BSBDA) with limited

Overdraft, other loan accounts, Fixed Deposit, Recurring Deposit, Kisan Credit

Card(KCC), General Credit Card (GCC),Remittances, Micro Pension, Micro

Insurance, and Mutual Funds, e-KYC, Aadhaar Seeding, Mobile seeding etc.

Electronic Benefit Transfer Scheme sponsored by Central /State Governments,

Direct Benefit Transfer and Government to Person (G2P) Schemeswill 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 period of Five years and which may be

extended, subject to mutual agreement, by a further period of five years. This

project is an end to end solution for implementation of Financial Inclusion in

Bank.

The approximate number of Sub-Service Areas and Urban Clusters to be

covered through this RFP will be around 750which 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 contractwith 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

proprietary right of the Bank without their written consent.


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2. DEFINITIONS

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 Operation” means geographic area allocated to each Bank Mitr

/Business Correspondent Agent (BCA). Sub-Service Area (SSA) will be the

unit for operation covering a village or group ofcontiguous villages. Each

BCA will cover all the villages in the Sub-Service Area allotted to that

BCA.In respect of urban clusters, details of wards or such other

geographical boundary as decided by the Lead Bank/Bank forms the area

of Operation.

2.2. “Bank” means Karnataka VikasGrameena Bank.

2.3. “Bid” means the offer made by the Bidder in response 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 is an entity who is

eligible to act as a business correspondent for the bank under the terms

hereof for providing services described in Annexure-I, Annexure-II.

2.6. “Bank Mitr /BCA” means Business Correspondent Agent appointed by

BC operating inthe Customer Service Point (CSP)/Business

Correspondent Outlet (BCO)or in an allotted SSA. The general

guidelines to be followed by the BC for engaging a Bank Mitr /BCA are

mentioned in Annexure V.

2.7. “TechnicalService Provider” (TSP) means any entity with whom the Bank

enters into agreement for providing services of Business Correspondent

with the Technology solution as described in the ‘Scope of Work’ in this

document. The terms BC and TSP 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 (SLA).


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2.9. “Customer Service Point (CSP) or Business Correspondent Outlet (BCO)”

are the terms used interchangeablyand mean the outlet of the Service

Provider which will be providing Banking and financial services.

2.10. “Bank Mitr” and BCA used in this RFP carry the same meaning and are

terms used interchangeably.

2.11. “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).

2.12. “Financial Services” means enrolment for opening of BSBD Accounts,

loan accounts, FD, RD, KCC, GCC etc., and various

transactions/operations through them, remittances, extending services

like Micro Pensions, Micro Insurance, Mutual Funds,Canvassing of

PMJJBY, PMSBY and APY accounts etc.

2.13. “FI / FI Implementation” means extending financial services through

branchless banking through Business Correspondent module, including

extending services under ‘Electronic Benefit Transfer (EBT)’ and / or

‘Direct Benefit Transfer (DBT)’, etc usingrelevant technology.

2.14. “Eligibility Criteria” means the criteria required 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.

2.15. “Hand Held Devices or Front end Devices or Field devices mean Micro-

ATMs or Hand Held Machines, Mobile Handsets / Mobile Devices /

Tablets /Laptop coupled with accessories like Finger print / IRIS scanner,

PIN pad and receipt printer or any other peripherals that are required

for carrying out transactionsboth in Online/Offline manner.

2.16. “FI Server or Intermediary Server” means TSP server with fully

parameterized software module to control, drive Field devices, act as

router, facilitate conducting various FI Services after seeking

authentication from Remote server / Bank’s FI Gateway etc.


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2.17. “Lead Bank” means the Public Sector Bank which convenes DCC/SLBC

meetings in the District / State respectively.

2.18. “NPCI” means National Payment Corporation of India.

2.19. “RBI’ means Reserve Bank of India

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

‘C-Edge Technologies Pvt Ltd’.

2.21. “RFP” means this Request for Proposal bearing Bid Reference No. RFP

Ref. No. 96/KVGB/FI/KTB/2018 dated15.10.2018

2.22. “UIDAI” means Unique Identification Authority of India

2.23. Words “Service Provider” and “Bidder” used in thisRFP carry the same

meaning.

3. REQUEST FOR PROPOSAL (RFP) 3.1 This Request for Proposal is being issued by Karnataka

VikasGrameenaBank inviting proposal from eligible bidders, offering

appropriate technology or to be engaged as Service Provider by the Bank

for a period of 5 years for providing services of Business Correspondents

in the Sub-Service Area and Urban clusters i.e. providing end to end

solution for FI implementation by Bank. The period may be further

extended by another five years on the terms and conditions with mutual

agreement between the Bank 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 activities is listed below:

Particulars Details

Last date to seek clarifications on the

RFP

October31, 2018

Last date & time for receipt of

response to this RFP together with

a) Bank Guarantee ofRs. 30,00,000/-

November05, 2018 (04.00 pm)

To be submitted at Karnataka

VikasGrameena Bank, Head


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Particulars Details

(ThirtyLacs Only) favoring

Karnataka VikasGrameenaBank, as

per the format in the RFP, as Bid

Security (returnable only to non-

successful Bidders)

b) `15,000/- (RupeesFifteen Thousand

only as Cost of the Bid (non-refundable)drawn in favor of Karnataka VikasGrameenaBank and payable at Hubli.

Office, FI Division, Belagavi Road-

DHARWAD 580008.

Date and time of opening the technical

bids

November.05, 2018 (04.30 pm)at

Karnataka VikasGrameena Bank,

Head Office, Belagavi Road,

Dharwad-580 008.

Date and time of reverse auction Will be advised to technically

qualifiedbidders later. Bidders

may arrange to obtain Digital

Signatures to participate in the

reverse auction

Address for communication Chief Manager, Karnataka VikasGrameena Bank, Financial Inclusion Division, Karnataka VikasGrameena Bank, Head Office, Belagavi Road, Dharwad-580 008. Phone: 0836-2448626, Mail ID: [email protected]

Important Note All the prospective Bidders and the stake holders are requested to visit Bank’s website at www.kvgbank.comunder ‘Announcement/ Tenders’ for updates / amendments, if any,

http://www.kvgbank./


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Particulars Details

with regard to this RFP, on daily basis.

Bank reserves the right to change the dates, timings and venue mentioned above or elsewhere mentioned in the RFP and the same will be communicated by placing 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 the Bidder(s) with information to assist in 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, reliability 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 completeness of this RFP. Bank may in its absolute discretion, but without being under any obligation to do so, update, amend or supplement the information in this RFP.

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 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.


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3.4.2 Notification of amendments will be put up on the Bank’s Website and will be binding on all Bidders. No individual communication / paper publication will be made for the same.

3.4.3 In order to allow prospective Bidders reasonable 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-Icovering the habitations in Bank’s allotted Sub-Service Areas and Urban clusters.

4.2. The Service Provider will provide an end-to-end solution to the Bank supporting online / off-line transactions through Micro ATMs/Mobile Device/ Tablet / Laptop and inter-alia includes that :

4.2.1 The solution shall be 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 shall be compatible and synergize with the FI Gateway/

Core Banking Solution of the Bank. 4.2.3 The solution shall support financial products such as Savings deposits,

fixed deposits, Loan products,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 course. The solution shall support authenticating the customer through Biometrics (finger prints/IRIS) or PIN.

4.2.4 The solution provided by the TSP/ Service Provider shall have a Key

Management System for secure transfer of data/messages across the eco-system with proper encryption.

4.2.5 The service provider shall supply, Maintain and Operate Hand Held

Devices/ Pin Pad/Micro-ATM/ Mobile Devices/ Mobile Sets/Laptops / Tablets etc, supportingAccount based transactions,RuPay card transactions, AEPS transactions, support equipment and application


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software that has capability to support Online /Offlinetransactions & operations at the service delivery 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 VikasGrameena Bank’s purpose.

4.2.7 FI Setup of Service Provider(SP), consisting of both Hardware and

Software, deployed at Bank’s Production site at Mumbai is to be replicatedsimultaneously 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 Devices/ Micro-ATM or Mobile

Devices/ Mobile Sets/Laptops / Tablets etc., will be driven by the FI Server of the SP,which in turn is connected to the Bank’s FI Gateway. SP 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 their cost. FI Server of the SPto seek biometric / PIN authentication from Bank’s FI Gateway.

4.4. The Service Provider shall provide the services through the Bank Mitr//BCA outlets engaged by him. The Bank will prescribe the number of Bank Mitr/ BCA to be engaged in the area of operation. The Bank will have the option of increasing/decreasing the number of BCoutlets to the extent of 35%ofthe quantities mentioned in this RFP. List of additional locations where BCO are to be established will be advised to the selected bidder by the bank separately from time to time, as per the need of the Bank / RBI/IBA/ Govt. guidelines. The bank would further have an option of discontinuing or continuing the BC outlets in areas where Karnataka VikasGrameena Bank or any other bank opens bank branch during the period of the contract at the sole discretion of the Bank withoutassigning any reason to service provider. It is essential that BC 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, without any additional cost to Bank.

4.5. Bank reserves the right to add up additional locations where BCAs are to be set up either in Rural / Semi-Urban / Urban areas indicated in Annexure-III.

4.6. The Service Provider assumes complete responsibility and provides an end-to-end solution for extending FI implementation, consisting of


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appointment of BCAs and providing Front end devices/ equipment to Bank Mitr, imparting training, establishing CSPs, customer enrolment including capture of customer photo and biometrics, opening of accounts, FI Server application, conduct customer transactions, seeking authentication from Bank’s FI Gateway, cash management for extending FI Services, reconciliation with Bank’s Host, MIS,Dash Board and Control reports etc.

4.7. The number of BC outlets to be offered to identified L1 Bidder is at the sole discretion of the Bank. Bank does not guarantee any minimum number of BC outlets and Bank’s decision in this regard is final and binding on the Bidders.

4.8. Bank intends to engage multipleservice providers and allocate BC locations amongst them. The modalities of such allotment are spelt out elsewhere in this document.

5. ELIGIBILITY CRITERIA

The RFP aims at engaging the Service Provider to offer services in the Area of

Operation to be informed by the Bank.Bids satisfying 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.5crore in any two of the three previous financial years(2015-16, 2016-17, 2017-18) and;

Audited Financial Statements for the previous three years of the Bidder and that of Parent/Holding Company for previous three years,


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submitted.

Bidder to mention


b) Positive Net worth during

any two of the three previous financial years (2015-16, 2016-17, 2017-18) and;

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

wherever applicable. Provisional Financial Statement for 2017-18 is acceptable, if not audited so far. 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 end-to-end FI

solution (such as EBT, DBT,

RuPay and Aadhaar based

Payment, etc.)

usingappropriateapproved

Technologyfor a large

Private Sector Bank or a

Public Sector Bank for a

minimum period of

60months.

b) The bidder should have

the previous experience

Letter from the

concerned Private /

Public sector Bank

confirming successful

implementation of FI

project, conforming to

criteria, with the

following details:

Name of the Bank

Number of Locations

Type of Technology

Scope of Project

Name of the contact

person with


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submitted.

Bidder to mention


of implementing the

solution in

atleast720locations in

any Bank under FI

project and Bank has the

discretion to relax this

condition.

designation, contact

number, fax, address,

e-mail id etc.,

Note : Bank reserves it’s

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 all theFI services as per Annexure-I and as per the direction of Government of India.

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 against by any Public Sector Bank to Indian Banks’ Association for any malpractice, fraud, poor service, etc.

Undertaking letter as per Annexure-XII.

7. Bidder is willing to take up additional locations for FI implementation to the extent of 35%, over and above the quantities mentioned in the RFP, on PAN India Basis, at the

Undertaking letter as per Annexure-XII


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submitted.

Bidder to mention


same Commercials and Terms and conditions being finalized in this RFP.

8. Bidders should have digital signature to participate in online sealed bid and reverse auction

Details of certificate

9. The bidder should not have been black listed by any Govt. Financial Institutions/Banks/ Government departments/ Semi-Government departments/ PSUs in India and the said debility must not be in force if blacklisted.

A self declaration by the Bidder

10. The Bidder’s company should not be owned or controlled by any Director or Employee (or Relatives) of Syndicate Bank

A self-declaration by the Bidder on Company’s letter head.

Note: 1. Bank may, at its discretion relax one or more of the above conditions

for the existing Service Providers for the same functionality.

2. Service Providers who were engaged by the Bank during the last 5

years but whose services were discontinued prematurely for whatever

reason are not eligible to participate in this tender.

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 will be the ‘Single Point Contact’ for the Bank for

technology and operations of Business Correspondent.Sub lettingof BC


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operations and technology is NOT permitted under this RFP and the successful bidder has to undertake all operations.

7. TARGET GROUP

7.1. Bank is planning to extend ICT-BC based outlets in about 725locations covering Sub-Service Area villages (District-wise matrix is provided as an annexure to this document). The Bank would, at its discretion, implement similar solution at additional locations/decrease existing locationsduring the contract period

7.2. It is proposed to extend banking/ financial services to all the

households of the aforesaid Areas 7.3. The geographic locations that fall within the scope of this project

can span over rural, semi-urban, urban, metropolitan, Island 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, NPCI, StateGovt/s, etc.

8.2. Micro ATM equipment used such as Hand Held Devices (POS/POT/HHM),laptops / tablets / Mobiles, Scanners, PIN pads, Key-Management system , specifications for interoperability, etc. , would conform to IDRBT’s latest version of “Open Standards for 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 Security 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 & procedures 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 RBI.


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8.7. Accounts, transactions, services, controls, etc., related to banking and financial services should integrate with Bank’s FI Gateway.

8.8. The solution should conform to and integrate with relevant solution proposed by Inter-Ministerial Group recommendations for financialinclusion.

8.9. The solution should conform to and integrate with UIDAI/NPCI’s /IBA /Regulator 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 by 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. 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.

8.14. 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.

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 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.

8.17. Micro-ATMequipment and/or Hand Held Devices should support Account based, Aadhaar/RuPaybased transactions.

9. RESPONSIBILITIES OF THE BIDDER


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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 appropriate technologywhich includes services likeintegration of various technological and 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 responsible 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. Bidder shall be Indemnifying the bank of risks indicated in the section “Indemnity” and specific 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 incidental activities

related to the scope of the RFP. 9.9. Bidder to provide details of Bank Mitr/ BCAs 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 terms of engagement for the infrastructural support and services extended to the bank as per the format provided as per Annexure – XIV of this RFP with modifications acceptable to 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, NPCI, UIDAI, 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.


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9.13. The selection of Bank Mitr/BCA be done by the SP with the consent of the concerned Branch Manager in whose service area the /BCO is located.

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 , agents or personnel engaged by the bidder in the project is not satisfactory or is detrimental to the interests of the Bank, the 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, agentsetc of the bidder for any assignment under this project.

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

9.18. Bidder will involve designated officials of the Bank in selection process of BC agents.

9.19. Cash Management is the sole Responsibility of Service Provider as discussed in annexure I.

9.20. Bidder to extend all of the outsourced banking and financial services by deploying such personnel that 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 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 / mobile devices/laptops/Tablets , enrollment system, digital fingerprint scanners,PIN pads, IRIS scanners, digital cameras, printers, intermediate switching, backend Banking software, etc.

10.2 Front end equipment deployed at the customer service point shall support RuPay card based (PIN &Aadhaar) authentication,Aadhaar based(finger print/ IRIS)authentication,Proprietary biometric (finger print ) based authentication, redundant power sources for continuous operation, voice guidance in the local language, ability to support multiple products and services, receipt printing, etc.


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10.3 The solution should support a model where the authentication would be based on the biometrics stored in remote authentication server. It shall be ensured that no customer information is stored in the front end / field devices or in FI servers of TSP.

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

10.7 Bidder shall undertake 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/offline transactions, other operations at the BCO.

10.9 All the hardware, software, consumables, location Boards, Dos & Do not’s Board, Uniform of Bank Mitr& other mandatory boards as specified by Bank atBCA premises would be at the cost of the Bidder.

10.10 Bidder shall provide services of an Intermediate System or FI Server (supporting functions like, 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 transactions/Customer enrolment data in online modes from a large number devices deployed in this project. Bidder shall provide Dash Board for monitoring of Bank Mitr attendance and performance in terms of transactions.

10.11 Bidder shall provide interface and 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 to the Bank.

10.13 Bidder shall supply infrastructure at theirown 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.


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10.14 Bidder shall own and operate entire infrastructure including the front-end systemsand the intermediary switching solution etc.

10.15 Bidder shall provide devices required at the BC locationsfor enrollment, registration, point-of-transaction such as HHM/mobile device/laptop/tablet, printer, finger-print scanner, IRIS 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 solution 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 Bank Mitrwould encourage and promote customers to use Bank’s services.

10.19 Bidder will have to deploy the solution 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 48hours of reporting.

10.21 Adequate number of spare front end equipment / batteries, etc., should be maintained by Bidder for immediate replacement. Sufficient stock of equipment shall be made available at all Bank Mitr supervisor locations.

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

10.23 Bidder shall submit details of the database backup maintained on their FI/Intermediary server, along with database schema, password credentials etc., to access the database at regular intervals as stipulated by the Bank. Service Provider shall take daily backup of application & database and inform details to Bank.

11 FUNCTIONAL AND TECHNICAL REQUIREMENTS 11.1 The solution shall support online transactions invariably and also

support offline transactions, if required at a later date by Bank. 11.2 Transactions are authenticated using finger print templates/IRIS

storedat 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


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Deposit, Withdrawal, Balance enquiry, Mini Statement, Remittance, fund transfer, loan credits, cash deposit using RuPay card etc., extending KCCs, GCCs, account management, financial literacy, electronic benefit transfer, direct benefit transfer,Micro Insurance, Micro pensionsetc. The bidder shall customize the solution for any requirement of the Bank at a later dateat their cost, as per the timelines stipulated by Bank.

11.4 Detailed functional requirements are enumerated in Annexure-II. 12 ARCHITECTURE IN BRIEF

12.1 The architecture includes [Hand Held Devices like Hand Held

Machines/ Mobile hand Sets/Laptop/Tablet,Pin pad etc., supporting RuPay cards (Chip and Magstrip based) and Aadhaar / Account based transactions as well, FI/Intermediary Server of the Bidder to be installed at Bank’s DC/DR sites, FI GATEWAY and Core Banking System (CBS) of OFSS installed again at Bank’s DC/DR sites.

12.2 Field 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, V-SAT etc., and the FI/Intermediary Server is connected to Bank’s FI Gateway which in turn is connected to CBS of the Bank.

12.3 FI Gateway has also a sub-module viz., Central Biometric Authentication 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 envisages online transactions. In Online mode, all Transactions are authenticated online, suitable accounting entries passed at Bank’s CBS Host, respond back in ISO messaging format with requisite response code to field devices. 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 indicating the reason for un-successful return of the transaction. The FI/Intermediary sever of the Bidder connects to Banks FI gateway for seeking the authentication, in online mode, from


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Central Biometric Authentication Server of the Bank or from the remote server like through NPCI/UIDAI/Bank ATM Switch etc.

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 Annexure etc., while submitting the response.

13.2 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 One year from the date of opening Technical Bid.

13.3 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.

13.4 Any bid submitted cannot be withdrawn / modified after the closing date and time for submission of the bid offers unless specifically 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 schedules, 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.

13.9 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.

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


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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 assigning 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 authorized 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 to 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. No 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, super scribed as “Technical Bid” along with Bid Security, DD towards cost of the Bid and offer covering letter as per Annexure-XI to this RFP within the time stipulated in the RFP.

14.3 Bank will be inviting on-line sealed indicativecommercial bids from

the technicallyqualified Bidders for fixing the floor price for ‘Reverse Auction’ process to be conducted, to finalize the bidder offering most competitive prices. The date and time to obtain such sealed Bids will be informed to all the qualified Bidders.

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


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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 thereafter 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 the 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 such information along with the offer shall result in disqualification.

15.4 The Bidder shall bear all costs associated 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 serially 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 bids not conforming to above.

16 VALIDITY OF BIDS


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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’ consent 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 SECURTY 17.1 The Bidder will have to submit Bid Security in the Form of a Bank

Guarantee, as per Annexure-XIII, issued by a scheduled bank in

India, for ` 30,00,000/- (Rupees ThirtyLakhs only) valid for period

of one year from the date of RFP. The bidder shall also undertake to get this BG renewed for further periods if required.

17.2 The Bid security will be returned 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 security deposit/performance guarantee as per the requirements of bank. The security deposit/performance guarantee shall be for 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 for any reasons, whatsoever; 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 Bidder, if the Bidder fails to :

(i) Sign the Service Level Agreement(s) with the Bank within a period of 90 days for any reasons, whatsoever; or

(ii) Furnish Security/Performance Guarantee to the Bank within the limit specified by the Bank.


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18 TECHNICAL AND COMMERCIAL BID

18.1 The technical Bid should provide complete details sought in the Annexure-VI of this RFP.

18.2 The Bidder has to invariably submit the Compliance, and detailsof deviation, if any, relating to both Commercial and Technical requirements. It is deemed that Bidder has complied with the entire commercial and technical requirements 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, Bankmay allow such deviation 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 evaluation.

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 cash handling services. The rate quoted by the Bidder 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..30,00,000/- and Cost of Bid of ` 10,000/- will be opened in the

presence of authorized representatives of the Bidders at Karnataka VikasGrameena Bank, Head Office, Belagavi Road, Dharwad-580 008 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 Bank will undertake evaluation of technical bids starting with examination of the Bids to determine whether documents are complete, are in the required formats, documents properly signed and the Bids are generally in order.


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

19.4 The Bank will examine whether 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.

19.5 During evaluation of the Bids, Bank, at its discretion, may ask a bidder for clarification 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.

19.6 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. Bidders who attain a minimum of 75% marks, as per Annexure-VIII, only will be qualified for further processing. The bidders who qualify in the technical bid will be shortlisted and then Reverse Auction process of bidding will be followed. Only the technically qualified bidders will be asked to participate in the reverse Auction. The business rules, term and conditions of the Reverse Auction process will be provided to the selected bidders in due course.

19.7 L-1 bidder will be determined on the basis of the lowest price quoted in the Reverse Auction.Following criteria will be adopted for identification of L1 Bidder and for allotment of Sub-Service Areas to Bidders.

19.8 Reverse auction will be conducted provided that there are at least two technically qualified bidders, If there is only one technically qualified bidder then Bank may either seek a physical bid or decide not to proceed with further evaluation process and may terminate the RFP process.

19.9 The rates quoted by the bidder/Service Provider will be valid for

FIVEyears.

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.

19.11 The allotment of SSAs/ BC locations to the bidders will be as per the procedure described hereunder:


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19.11.1 Based on the final quotes in the Reverse Auction Process, bidders will be ranked as “L1”, “L2”, “L3” and “L4” etc.

19.11.2 L1 will be offered the first lot of not less than 40% of SSAs/ locations and this will be done in phases based on the performance of the successful bidder.

19.11.3 Bank has the discretion to offer some locations, not more than no. of SSAs allotted to L1 to L2, L3 or L4 etcbased on the administrative and operational aspects, subject to their agreeing to match the price quoted by L1. Such allocation need not be dependent on the order of price ranking.

19.11.4 However, L2, L3 or L4 etcshall have NO right to demand for such allocation of SSAs under this RFP.

19.11.5 If L2 or L3 or L4 etcrefuses to accept or fails to execute the Bank’s offer of SSA allocation in full or part, then Bank at the discretion will allot such locations to other short listed bidders. If no such bidder accepts the location, then L1 has to necessarily accept such locations.

19.11.6 L1 shall not have right to refuse extend FI services in any SSA/ location allotted by Bank under this RFP.

20 CONTACTING THE BANK

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 without assigning any reason whatsoever.


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22 LIABILITIES OF THE BANK

22.1 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 between the bank and the bidder.

23 PROPOSAL PROCESS MANAGEMENT

23.1 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.

24 PROPOSAL FORMAT

24.1 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 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. Annexures of this RFP form integral part of the RFP.

25 OWNERSHIP

25.1 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 documentation submitted by bidders shall become the property of the Bank. Unopened bids will be returned to bidders.

26 CONTRACT / SERVICE LEVEL AGREEMENT

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

26.2 A Service Level Agreement format is placed as Annexure-XIV. The Bank will facilitate execution of contract with the Service Provider.


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27 PENALTY FOR DELAY

27.1 Without prejudice to Bank’s right to terminate the agreement, for any defective service or inability to provide the service for any reason or for non-functioning of the BCO for any reason, beyond 10 (Ten) days

continuously, a penalty@ ` 500/- per day (from the 11th day onwards)

will be levied for each of the BCO from the BC.

28 REVIEW OF SERVICES AND TERMINATION OF CONTRACT

28.1 The performance of the Service Provider will be reviewed, every month initially, and thereafter at such intervals as the bank may decide toidentify the bottlenecks and to initiate remedial measures. The bank reserves the right to terminate the contract at any point of time if,

a. The Bidder/service provider commits a breach of the terms and

conditions of the RFP/Contract and fails to remedy such breach for a

period of 30 Business Days, following receipt of written notice from

Bank specifying the breach or breaches;

b. An Insolvency event occurs in relation to the Bidder or it ceases to

carry on its business or substantially the whole of its business;

c. Services are found to be unsatisfactory; d. There is a consistent failure to maintain the customer satisfaction; e. Desired levels of output by the Service Provider are not met; f. There is a discrepancy found in the accounts maintained by the

Service Provider and the records of the Bank; g. The customers serviced by the Service Provider complain to the Bank

that the services provided by the Service Provider is inefficient; h. There is fraud in the accounts handled by the Service Provider; or i. 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

its convenience, availability of infrastructure, connectivity-etc.

28.2 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.


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28.3 Bank shall also evaluate the performance of the Service Provider and if it is found that 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.

28.4 It is expected that Bank Mitr /BCAs are engaged and are activated in the villages coming under the respective Sub-Service Areas within one month of award of contract. Shortfall of more than 10% in achieving thetargetwill result in the services being treated as ‘unsatisfactory’. A penalty @ Rs. 500/- per day (from the 31st day onwards) will be levied for each of the BCO from the Service provider.

28.5 The Bank shall not be liable for the acts ofcommission of the Bank Mitr/BCA engaged by the Service Provider. The Service Provider is responsible for compliance of all applicable laws and regulations of the land in relation to the Bank Mitr /BCA engaged by them and the Bank Mitr/ 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 towards the Bank Mitr/BCA engaged by the Service Provider.

29 EFFECT OF TERMINATION

i. The bidder agrees that it shall not be relieved of its obligations

under the reverse transition mechanism notwithstanding the

termination of the assignment. 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 and maintenance. The

reverse transition will be for the period of 3 months post the notice

period.

ii. Same terms (including payment terms) which were applicable

during the term of the contract should be applicable for reverse

transition services

iii. The bidder agrees that after completion of the Term or upon

earlier termination of the assignment the bidder shall, if required by the

Bank, continue to provide warranty services to the Bank at no less

favorable terms than those contained in this RFP. In case the bank wants


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to continue with the bidder’s services after the completion of this

contract then the bidder shall offer the same or better terms to the

bank. Unless mutually agreed, the rates shall remain firm.

iv. The Bank shall make such prorated payment for services rendered

by the bidder and accepted by the Bank at the sole discretion of the

Bank in the event of termination, provided that the bidder is in

compliance with its obligations till such date. However, no payment for

“costs incurred, or irrevocably committed to, up to the effective date of

such termination” will be admissible. There shall be no termination

compensation payable to the bidder.

v. Termination shall not absolve the liability of the Bank to make

payments of undisputed amounts to the bidder for services rendered till

the effective date of termination. Termination shall be without prejudice

to any other rights or remedies a party may be entitled to hereunder or

at law and shall not affect any accrued rights or liabilities or either party

nor the coming into force or continuation in force of any provision

hereof which is expressly intended to come into force or continue in

force on or after such termination.

30 PAYMENTTERMS

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 and

with atleast one financial transaction through Micro ATM/ BC point.

Payment for transactions will be done for all the transactions excluding

accommodative transactions likeBank Mitr own transactions/other Bank

Mitr transactions of our Bank/more than two transactions in same

account on a day etc. No payment will be done for balance enquiry,

Mini-statement or any other non-financial transactions.


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30.3 The Service Provider is eligible for charges as per Annexure-III& IV and

the amount to be shared with the BCA is indicated therein. The amount /

percentage of share may be varied based on the Regulatory stipulations.

30.4 The Service Provider will be paid charges for customer enrollment as

mentioned Annexure-III after the activation of customer account. The

date of activation would be the date of first financial transaction.

30.5 The Bank Mitr shall not deny opening of account for eligible citizens

without bank account in our Bank.

30.6 The Service Provider would authorize the bank to credit the amount

payable to Bank Mitr /BCAs directly to his/her account through the

account of Service Provider.

30.7 The Service Provider is eligible for charges as mentioned under

Annexure-III for various activities and cash handling charges as per

Annexure-IV. The service Provider should pass on a minimum of 80% of

these charges to the BCA. This is in addition to the charges under Clause

30.4 above. The percentage may vary based on the regulatory

stipulations.

30.8 The Service 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, Bonus 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,


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quarantine restrictions, trade embargos, declared general strikes in

relevant industries, 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 party 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

continues beyond a period of 180 days, the Bank and the Service

Provider shall hold consultations with each other in an endeavor to find

a solution to the problem. Notwithstanding above, the decision of the

Bank shall be final and 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

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:

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;


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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’

employees, 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 Deliverables 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

Bidder or its employees or sub-contractors.

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,

copyright, 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

person

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 Confidential Information to any

other person.


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33.3 The bidder shall execute a separate Non-disclosure agreement with the

Bank as per the requirement of the Bank.

34 JURISDICTION

34.1 All disputes would be subject to Indian laws and jurisdiction, and settled

at courts in Dharwad City only-state-Karnataka.

35 COMPLIANCE WITH STATUTORY AND REGULATORY PROVISIONS

35.1 The Bidder/Service provider shall undertake to observe, adhere to, abide

by, comply with and notify the Bank about all laws in force or as are or

as made applicable in future, pertaining to or applicable to them, their

business, their employees or their obligations towards them all purposes

of their services mentioned in the RFP.

35.2 The Bidder/Service provider shall promptly and timely obtain all such

consents, permissions, approvals, licenses, etc., as may be necessary or

required for any of the purposes of the services mentioned in the RFP or

for the conduct of their own business under any applicable Law,

Government Regulation/Guidelines and shall keep the same valid in

force during the terms of the contract.

35.3 In the event of failure or omission to do as above, the bidder/service

provider shall indemnify, keep indemnified, hold harmless, defend,

protect and fully compensate the 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 above and all other statutory obligations arising there from and the

Bank will give notice of any such claim or demand of liability with

reasonable time to the Bidder/service provider.

35.4 This indemnification is only a remedy for the Bank. The Bidder/service

provider is not absolved from its responsibility of complying with the

statutory obligations as specified above.

36 TAXES AND DUTIES


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36.1 The Service Provider shall be entirely responsible for all applicable taxes,

duties, levies, charges, license fees, road permits, etc., except Service

Tax which will be reimbursed by the Bank on actual basis as per the rules

in force. In the event of Service Tax getting replaced by any other levy

like GST, the same will be paid at the applicable rates instead.

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 Provider. 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 MANAGER


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ANNEXURE-I

SCOPE OF SERVICES OFFERED THROUGH BUSINESS CORRESPONDENT OUTLET BY SERVICE PROVIDER 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 Bank

Mitr/BCA engaged by the Service Provider. The Bank will prescribe the number of BCA to be engaged in the area of operation. The Bank will have the option of increasing/decreasing the number of BCAs up to 35%. List of additional locations where BCOs are to be established will be advised to the selected bidder(s) by the bank separately.

3. The bank would further have the option of relocating or discontinuing the BCA in areas where a bank opens a branch during the period of the contract or at the discretion of Bank for any other reasons.

4. In areas where relocation of BCO is suggested due to opening of bank branch, the Bank Mitrmay be allowed to continue at the discretion of the bank.

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.

6. This RFP covers the total number of locations mentioned in Annexure-X Bank reserves the right to add up additional locations up to35% where–BCOsare to be set up on the same commercials.

7. Bank may, as part of their urban Financial Inclusion plans, identify urban locations at its discretion

8. Bank Mitr /Business Correspondent Agent (BCA) activities: a. Enrollment of customers, including demographic data, photo,

and collection of biometric and other KYC documents of customers. Enrollment by e-KYC mode through Micro ATM for customers having Aadhaar number.

b. Login to Micro ATM by Aadhaar authentication

c. Provide interoperable transaction facility like Deposit of money in to bank accounts including loan

accounts and deposit accounts. Withdrawal of money from an account with the bank

including all EBT/DBT payments/G2P payments


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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.

Interoperable Aadhaar Enabled payments through Micro ATM, both on-us and off-us.

Interoperable RuPay card on-us and off-us d. Other activities:

Identification of borrowers as per bank’s requirements. Collection, Preliminary scrutiny of data and submission

of applications to the Bank for its reviewCreating awareness about savings and other products offered by the Bank, education or advice on managing money & debt counseling.

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 like Insurance, Pension products, Mutual funds etc.

Aadhaar and mobile seeding of Bank accounts through Micro ATMs.

Mobile number updation in Aadhaar database of UIDAI through Micro ATMs.

Facilitating RuPaycards deliveryto customers and encouraging RuPay card transactions by customers.

Canvassing of PMJJBY, PMSBY and APY accounts. Activation of RuPay /KCC Cards.

e. The above services are in respect of the following to be

offered at the BCO as a part of BCA activity: Savings Bank accounts Recurring Deposit Accounts Remittances Fixed Deposit Overdraft/Retail loan


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KCC/GCC Third party financial products like Micro insurance,

Pensions etc. EBT and DBT transactions

f. To sourcesome the following products for the branch, as permitted by RBI guidelines from time to time as part of Business Facilitator functions. Loans against TDR/NSC/ KVP etc. General purpose Credit card (GCC) Kisan Credit Card (KCC) Current Account Savings Bank account Term Deposits Recurring Deposits Mutual funds on a referral basis Insurance (Life and Non-Life), Pension and any other

third party financial product. Canvassing of PMJJBY, PMSBY and APY accounts .

g. Subject to meeting the eligibility criteria mandated by RBI,

/BCA may be engaged as Recovery Agent h. Customer authentication through RUPAY PIN / Aadhaar /

Banks proprietary biometrics as decided by Bank from time to time.

9. Cash Management: The Service provider will be solely responsible for the cash

management at all BC points irrespective of volume and value of transactions.

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 per the demand from each BCO location, apart from meeting the seasonal/monthly/weekly requirements relating to EBT and DBT on PAN India basis.


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ANNEXURE-II FUNCTIONAL REQUIREMENTS

1. ENROLLMENT OF CUSTOMERS 1.1. SP 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 SP should undertake enrollment to each of the products (as may be required by the Bank) as per the customers’ choice and bank’s policy.

1.2. Every customer shall 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.

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 Bank’s norm and other associated norms of GOI/RBI/UIDAI/IDRBT/IBA/legal guidelines.

1.4. SP will equip bank’s authorized field functionaries, authorized agents extending financial/banking services on behalf of the bank, SP’s authorized representatives etc., with necessary devices/instruments at their cost to electronically capture all the relevant details of the customer, digital photograph, digital raw images of required number of fingerprints, digital images of the support documents, etc., and provide the data in the format prescribed by bank through a secure transmission channel to Bank or Branches.

1.5. Due care and security should be accorded to all the related physical documents.

1.6. The equipment provided for the above stated front-end activity should be robust, reliable and easy-to-use, and customized to Indian rural conditions. The Micro-ATMs+ accessories like scanner, PIN pad etc to be deployed shall conform to IBA/NPCI/IDRBT/UIDAI standards prescribed from time to time which is presently version 1.5.1. This shall be capable of performing enrolment for productsapproved by the bank as well as transactions. The up gradation of equipment with Bank Mitr as per the directions of Bank/IBA/DFS etc shall be at the cost of the SP.


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1.7. SP shall also ensure that the agents are well trained and kept updated with bank’s new schemes, policies, etc as may be required to discharge their roles and serve the customers.

1.8. SP would also ensure that required supplies of stationery and other consumables are made available with agents for uninterrupted operations.

1.9. SP may be required to enroll the customer on production of documentary evidence/support that RBI or the Bank may prescribe duly complying with customer due-diligence (including Know-Your-Customer requirements).

1.10. The raw images of fingerprints will conform to ISO/IEC 19794 and standards prescribed by Reserve Bank of India vide their “Report of the Working Group on Standards for Raw Images of Fingerprints”. These raw images shall not be stored anywhere in the environment external to the Bank’s DC / DRS.

1.11. Having captured the enrollment data, the SP shall securely transmit the information required for account opening.

1.12. Bidder will conform to security best practices and any other guidelines stipulated by the Bank while capturing, storing, processing and transmitting, reporting enrollment data and related information.

1.13. The physical KYC documents,Photo and Account opening application forms of enrolled customers will be delivered at the designated location of the Bank Branch withinfiveworking Days.

2. CUSTOMER ENROLLMENT,ACCOUNT OPENINGAND ACTIVATION 2.1 GENERAL

2.1.1 Every customer Account shall be opened in the banking system after all the mandatory information about the applicant/customer has been captured.

2.1.2 System should be capable of handling all registrations and deregistration (subsequent to initial enrolment,) for additional schemes/products and services at the BCO, backend or at branch level as decided by the bank for each of the schemes/products and services.

2.1.3 However the account/scheme/product/service will be activated only after fulfilling the stipulations given by the Bank.


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2.1.4 The scheme/product or service may require authorization by Bank’s official before it becomes operational.

2.1.5 The front-end and intermediary systems together with the personnel handling the process should be capable of enforcing all the controls required by the Bank.

2.1.6 Suitable interface should be provided in the software solution that allows bank’s officials to view and authorize the opening of the account/registration for the scheme/product/service.

2.2 CUSTOMER OPERATIONS 2.2.1 Customers will carry out all types of banking transactions through

the BCA in the BCO. Customer Authentication is through Biometrics (Proprietary biometrics, Aadhaar biometrics-Finger print or IRIS) PIN (RuPaycard PIN).

2.2.2 Mode of transactions is online. 2.2.3 The solution shall have parameterized control to set online at each

card-level /account-level/ transaction-type level/ transaction value-level or a combination thereof.

2.2.4 A customer may have multiple accounts/services 2.2.5 Bank would determine from time to time the schemes or banking

services that may be extended to customers. 2.2.6 The services availed by the customers may vary. 2.2.7 Although initially, savings bank accounts are being offered, Bank

may extend other services also to the customers. . 2.2.8 Bidder would obtain application/enrollment forms for other

permitted schemes like loans, insurance, pension etc as and when they are offered by the Bank/subscribed by the customers.

2.2.9 Biometrics of non-Aadhaar customers are only to be captured and

such biometrics will be stored at the Bank’s Central Authentication Server. The related procedure would be finalized by the Bank in consultation with the SP/Bidder.

2.2.10 Procedure for reimbursement to Bidder towards Enrollment, will be as follows:

2.2.10.1 Reimbursement for these costs would be claimed from the Bank as per the contracted price on a monthly basis.

2.2.10.2 Bank will entertain claims for reimbursement from the Bidder only after Account opening and activation of account by Branch. Bank would pay at contracted Consolidated Unit Price


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foreachaccount activation and the first transaction through Micro ATM of Bank Mitr put through.

2.2.10.3 This Consolidated payment shall cover all the activities undertaken by the Bidder, their representatives/personnel under various stages commencing from obtaining the list of customers, identifying customers, enrollment, and transport of the physical and electronic records, updation of information of account openingin TSP data base.

2.2.10.4 Payments will be made on a monthly basis for all the accounts opened and activated in the previous month.

2.2.10.5 Reimbursements to the Bidder towards subsequent registrations shall be claimed from the bank on monthly basis.

2.2.10.6 Entire infrastructure required for these activities will be owned, maintained, managed and operated by the Bidder.

2.2.10.7 Biometric data need not be captured during enrollment process for customers who are sharing the Aadhaar number for account opening.

2.3 CUSTOMER ACCOUNT OPERATIONS 2.3.1 Customers who wish to receive or remit funds shall approach the

authorized representative of the SP i.e.the BCA. Customer will submit the Bank passbook /Aadhaar card / RuPay card or orally can tell account number or Aadhaar number.

2.3.2 The BCA will verify the identity of cardholder using the name & photograph on Aadhaar card/ Bank Pass book and name on RuPay Card.

2.3.3 BCA may verify additional details of the customer if stipulated by the Bank.

2.3.4 Customer is permitted to transact in online mode only through the Handheld device / Micro ATM

2.3.5 Customer is authenticated by verifying the fresh fingerprint/ IRIS sample (obtained through scanner at that time of every transaction) with the master templates/fingerprint/ IRIS datastored atremote location (Bank Central Authentication Server or UIDAI, etc). Customer can also be authenticated through PIN for RuPay card transactions.

2.3.6 Where ever the customer is having Aadhaar number, thelive biometrics (Finger prints or IRIS) are to be captured through scanners and verified through the UIDAI.


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2.3.7 The requested transaction is put through only if the conditions stipulated by the bank are met.

2.3.8 The successful cash transaction is concluded by payment of cash or receipt of cash by the Bank Mitr / BCA depending on whether the transaction is a Cash withdrawal or Cash deposit.

2.3.9 Each customer will be permitted only certain number of transactions and within a maximum limit prescribed by the Bank for each category for a given period.

2.3.10 These stipulations will be parameterized at front end system level and transactions shall be rejected beyond the set limit.

2.3.11 The above details will be furnished to the Successful Bidder by the Bank.

2.3.12 Receipts will be printed for each transaction including failed transaction with failed reason code and code description. One will be handed over to the customer and the other would be held with the Bank Mitr / BCA for records. The second receipt is optional.

2.3.13 Each transaction will have a unique reference number for the Bank and the same would be printed along with bank terminal ID and location name on every receipt.

2.3.14 All transactions are to be logged and the logs are to be preserved securely for future reference for time-periods stipulated by the Bank.

2.3.15 It should be possible to build audit trails of the transaction using the unique transaction number from the audit logs.

2.3.16 The account holder may request for statement of account and

the BCA at the village will provide a printout of last 10transactions including the outstanding balance in the desired account(s) initiating the customer transaction through Micro ATM.

2.3.17 The receipts and statements should be in English/vernacular language as may be stipulated by the Bank.

2.3.18 The credentials and digital images of fingerprints, etc should be tallied with that of the original records stored in the system ensuring that there is no impersonation.

2.3.19 The system should permit recording of nominations, noting of death etc.

2.4 OPERATIONS AT BC OUTLET (BCO)


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2.4.1 SP will be responsible for physical custody and upkeep of the systems/devices provided for front-end operations.

2.4.2 SP would also be responsible for cash and accounting of transactions; maintenance of record of enrollments/ accounts opened / rejected receipts of transactions, details of exceptional transactions, etc.

2.4.3 Authorized agents of the SP (BankMitr / BCA) who are permitted to operate the Front end systems shall be enabled with Aadhaar through which their identity is established and login is allowed to operate front end systems.

2.4.4 Cash replenishment and cash usage, transactions, etc should be recorded in the front-end terminal through which the transactions are being effected.

2.4.5 SP should be able to know the cash balances so as tobalance the physical cash available at any point at BCO during the day. The Bidder should also be able to take a printout of the Opening Balance of Cash, Closing Balance of Cash and the list of all transactions in between.

2.4.6 The printout shall also contain commission payable to the Bidder. 2.4.7 The printouts shall be obtained in duplicate every day. 2.4.8 One copy will be retained by the Bidder for records. 2.4.9 The second copy shall be handed over to the Bank while

submitting the claim. 3 Key Management: 3.1.1 Key Management System – Key management system should be

deployed centrally for the Bank and it should permit security framework of interoperability between bank terminals although the terminals are supplied by different Bidders. The process of generation, derivation, maintenance and revocation of keys needs to be provided.

3.1.2 The front end equipment cards should be capable of supporting EMV standard/specifications. The bidder shall comply with any Key Management standards that are to be implemented by Bank, without any additional cost to the Bank.

3.2 Customer DATA 3.2.1.1 Photographs, Documents of proof of identity / residential

address, entitlement to receive remittances under various


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schemes, application form, and raw finger print images( for non-Aadhaar customers )etc that are scanned at the time of enrollment or thereafter have to be securely stored. The physical copies of documents etc that have been collected from the customers should be securely stored. All this data in physical and electronic form are property of the bank and should not be used by the Bidder without bank’s express authorization.

3.3 Facilitation of issue of Passbook and RuPay Card to the customer:

Bank Mitr /BCA appointed by TSP shall facilitate issuance of Passbook /RuPay card to the customer by maintaining close coordination with Branch/Bank.

3.4 Login and operation of Micro ATM by BCA 3.4.1 Agents/Bidder’s representatives extending the services to bank’s

customers are required to authenticate themselves to the front-end systems through Aadhaar biometrics

3.4.2 The access to front-end system would be restricted to only select authorized agents. The front-end system should validate the agent’s credentials before allowing any access to the contents of the front-end system. All such access would be based on Aadhaar authorization.

3.4.3 In case of prolonged absence or indisposition of the appointed Bidder’s representative, Bank will insist replacement/appointment of a substitute.

4 REMITTANCE SERVICES 4.1 Bank would extend electronic cash/fund remittance facilities to

customers under this project. Bidder’s solution should have the capability to effect fund-transfer from one account to another account within the Bank and inter-bank. The solution should be able to send and receive funds electronically. These could be using inter-account transfer within the Bank or using AEPS across the banks.

4.2 Necessary interfaces have to be created with bank’s FI Gateway.


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4.3 Customer should be able to remit funds a using the front-end system with the BCA.

4.4 System should support all types of interoperable transactions with/without Aadhaar seeking authentication from NPCI/UIDAI or from remote Central biometric authentication server of the Bank.

5 OTHER PRODUCTS AND SERVICES 5.1 Bank would share operational guidelines for other products and

services that would be extended through this channel. The same will be shared with the Successful bidder.

6 STANDARD OPERATING PROCEDURE (SOP) FOR BC 6.1 The Standard operating procedure for the Business

correspondents/BC agents are mentioned under Annexure-IX 6.2 BCOs which are identified as Ultra small Branches, In addition to

the BC activities mentioned in the RFP, Ultra Small branch shall function as per working hours of the base branch. The weekly / public holidays of Ultra Small branch shall be as applicable to the base branch. However the BCAs can perform transactions in the Hand Held Machines (HHM)/ Micro ATM on 24x7 basis.

7 MANAGEMENT INFORMATION SYSTEM 7.1 Bidder shall put in place a robust MIS system / Dash board in order

to monitor all the activities under BC model connected with the Bank Financial Inclusion Plan.

7.2 Bidder shall assist the bank in defining exceptional transactions and monitor all such exceptional transactions from a central location in the Bank.

7.3 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/sub district/district, Scheme-wise, period wise etc as and when required.

7.4 Bidder shall provide data of Geographical Information System (GIS) of Bank Mitr, location photograph, etc for publishing in Banks website/ GOI website.

8 REVIEW AND MONITORING MECHANISM


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8.1 Bank will evaluate the Bidder on an ongoing basis and may take a

suitable decision for continuation/ termination / expansion of contracted services based on the performance.

8.2 The project shall conform to Bank’s policies and would be subject to Internal and External audits. The Bidder is required to extend all necessary co-operations to facilitate audit process.

8.3 Bidder shall have adequate audit controls and track normal and exceptional transactions.

8.4 Bank will utilize the services of internal or external auditors for ensuring proper operations by Bidders.

8.5 Bank may also arrange for a random verification of enrollment/ payments, etc for better control.

8.6 The bidder shall attend to the rectification of audit observations within timeframe stipulated by Bank from time to time.


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ANNEXURE-III

Commission Payable

Fixed Charges to be paid to the Service Provider:

1. Details of remuneration proposed to be paid to Service Provider, for the

activities mentioned in Column-A, are furnished in Column-B and Bank

Mitr share in Column C.

2. All Payments claimed by the Service Provider and accepted by the Bank

for payment, after verification, will be credited to the Service Provider's

account, with the Bank. The portion of remuneration to be shared to

BCA, has been listed in Column-C for which the Service provider will

authorize the Bank to transfer the payment to the credit of BCA’s

account, from out of the total payments made to the Service Provider.

Bidder has to confirm their acceptance for the same :

Activity Remuneration Of (B), % to be shared with BCA

[A] [B] [C]

Cash Handling charges :

a) Cash Deposits

b) Cash Withdrawals

c) Cash Handling Off-Us Txns

0.80%

0.75%

0.50% of txn amount with

max of Rs. 10/- per txn.

50%

50%

50%

Monthly BC Charges :

No. of Txns Amount

Of (B), % to be

shared with

BCA

1) 0-249 NIL NA


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[A] [B] [C]

2) 250-300

3) 301-500

4) Above

500 txns

Rs. 3000/-

Rs. 4000/-

Rs. 4500/-

80%

80%

80%

Cash Handling charges – Maximum limit per customer :

Per BC first 8 transactions per customer per month with maximum amount of Rs.

25000/- will be taken in to account.

Customer mobilization (for BC activities)

SHG Repayments 0.20% of Cash in amount 50%

Customer enrollment &Savings

Bank Account opening `Rs. 20/- per account 80%

Recurring Deposit account

opening `Rs. 5/- per account 60%

Fixed Deposit `Rs. 5/- per account 60%

Customer Initiated Non cash transactions

Remittance/Fund transfer `Rs. 5/- per transaction 80%

Balance Enquiry or Mini

Statement-No charges payable

Nil NA

Aadhaar No. seeding Rs. 5/- for each successful 70%


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[A] [B] [C]

updated record

Mobile No. seeding through Micro

ATM

Rs. 5/- for each successful

updated record

70%

Note: Bank also offers incentives to Bank Mitr for Business facilitation activities like sourcing of Loan applications, SHG group formation, Loan recovery, canvassing APY, Micro Insurance, Pension etc which will be decided from time to time by the bank. List of services and Products offered by the Bank may be added/ deleted from

time to time as per Bank’s policy.

Cap on Business/Commission: Reserve Bank has expressly prohibited sourcing

of Bulk deposits, NRE/NRO FCNRB deposits, and deposits from Public Sector

Companies/Government Departments by this channel.

-o-0-o-


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ANNEXURE-IV

COMMERCIAL BID INDICATIVE FORMAT

1. The Service Provider would be entitled to receive the fixed charges

mentioned at Annexure- III for the various services listed therein. The

Service provider would be entitled to receive Variable charges towards

Technology and Supervisor services in the Financial transaction.

2. All Payments claimed by the Service Provider and accepted by the Bank for

payment after verification will be credited to the Service Provider's account,

with the Bank. A portion of the charges for various activities as mentioned

in the RFP, under Annexure-III and Annexure-IV, will be transferred to BCA's

account from out of the total payments made to the Service Provider, for

which the Bidder is agreeable and offers his express concurrence /

Authorization.

3. The Service Provider is required to quote, during the reverse auction

process, his offer towards technology and supervisory cost per FI

transaction per locationas per the proforma of the Commercial Bid. The

payment will be made to the Bidder and the respective BCA on actualRate

quoted should be presented as per the format given below. The rate

quoted must be inclusive of all taxes, levies, etc., except Service Tax,

wherever applicable. Service Tax will be paid by the bank on actual basis.

4. The prices contracted should not be affected by exchange rate fluctuations,

changes in import duty and other taxes etc.

….. Contd


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Indicative Commercial quote format

Sl.

n

o

Nature

of

activity

Range BCA

charges

Service

provider

charges

Quantity for

evaluation

purpose

Total

(Rs)

A B C D

(A+B)

*C

1 Financial

transacti

ons

51 to 100

transactions No.of locations

X 60 (months)

2 Financial

transacti

ons

>100

transactions No. of

transactions X

*No. of

locations X 60

(months)

GRAND TOTAL xxx

Note: Fixed charges are applicable as described elsewhere in the document

where number of transactions for any location is not more than 50 in a month.

*Financial transactions means Cash withdrawal and cash deposit transaction.

XXX:To be quoted during the reverse auction Note :

1. Technology services covering all connected activities narrated in the RFP for FI implementation. The services include supply of hardware, software, middleware and other infrastructure, Hand Held Devices together with scanner, printer, pin pad etc., backend FI server storage, switching costs, connectivity including booster charges, centralized terminal management services, facility management, cash handling, transportation, insurance, facilitating enrollment for new schemes, transactions including EBT / DBT payments balance enquiry, mini statement etc, cost of consumables (printer paper, ribbons, cells) etc.


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2. Bidder to include all charges required for extending End-to-End solution for FI implementation. Bank only pays the Charges mentioned above on actual.

3. Quantities indicated above are only indicative and Bank does not guarantee/assure minimum quantities to the Bidder for the Technologies. Indicative quantities will however be used for deciding the L1 vendor,during the reverse auction process.

4. Payments will be made only on actual.

(Signature of the Bidder with Seal)

-o-0-o-


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ANNEXURE-V

ELIGIBLE ENTITIES AND GENERAL GUIDELINES

I. Entities eligible to be appointed as Bank Mitr / Business

Correspondents/BCAs:

The Service Provider would be required to appoint from among the following

as the Business Correspondent/BCA. This list would be revised from time to

time based on Reserve Bank of India directives.

1. NGOs/MFIs set up under Societies/ Trust Acts

2. Cooperative Societies registered under Mutually Aided Cooperative

Societies Acts or the Cooperative Acts of States/ Multi State

Cooperative Societies Act.

3. Section 25 companies.

4. Post Offices.

5. Ex-Service men.

6. Individual owners of kirana/ medical/fair price shop owners.

7. Individual Public Call Office (PCO) operators.

8. Agents of small savings schemes of Government of India/ Insurance

Companies

9. Individual who own petrol pumps.

10. Authorized functionaries of well-run Self Help Groups (SHGs) linked to

banks.

11. Individual members of Farmer’s Clubs.

12. Individual members of Self Help Groups.

13. Individual operators of Rural Multipurpose kiosks/ Village Knowledge

Centers

14. Individuals/ proprietors/ owners who manage Agri Clinics/

AgriBusinessCenters.

15. Individuals such as auto dealers, tractor dealers and FMCG stockiest.

16. Insurance agents including of private insurance companies (IRDA

certified) and postal agents.

17. Individuals operating Common Services Centers (CSCs) established by

Service Centre Agencies (SCAs) under the National e-Governance Plan

(NeGP).


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18. Any other individual considered suitable by the bank.

19. Companies registered under the Indian Companies Act 1956 with large

and wide spread retail outlets, excluding Non-Banking Financial

Companies (NBFCs).

20. Identified Business Correspondents and BCAs should not have been

defaulters to any financial institution.

21. Identified Business Correspondents should not have been blacklisted

by any bank in the last two years for deficiency of service.

II. While appointing Bank Mitra /Business Correspondent Agents (BCAs),

following general guidelines should be followed by BC:

1. As far as possible the existing BCAs/Bank Mitr who are already working

in the location are to be appointed.

2. The location/premises of Bank Mitr should be such that it is easily

accessible to all customers.

3. The selection of BCA must be done by the SP with the consent of the

concerned Branch Manager in whose service area the BCOis located.

Preference should be given to such persons who are already doing

some activity in the village or who are having experience in BC

operations. But, one Bank Mitr shall work for only one SSA and he/she

shall not be working with any other Bank.

4. Bank Mitra with minimum qualification (preferably 12th pass) and

obtain IIBF/Bank approved certification within three months and

ensures that he/she works from a fixed location (a room with minimum

space of 10x10 ft) for branding purpose and also extend banking

service to the customers by visiting all the villages in that SSA

5. The front end equipment / device to be given to BCA should be

interoperable through the gateway of Bank/ NPCI so that the customer

can access to any bank by using the device. The device must have

biometric facility (finger print & IRIS) plus card swiping facility with on-

line connectivity to perform transactions on-line


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6. The BCA must be responsible to receive and pay money, to transfer

money from one to another. Each BCA must also be able to do

BusinessFacilitator (BF) activities as permitted by the RBI/ Bank. BCAs

may also be used for deposit mobilization and for recovery as per the

terms of the scheme finalized by the Bank.

7. The BCA will also to undertake enrollmentsfor micro insurance, animal

insurance, crop insurance and micro pension. The bank will ensure

coordination with the agencies, viz., LIC and other agencies dealing

with these products.

8. An officer/Branch Manager of the concerned branch of the bank may

visit the BCO location normally once in a week/fortnight/month

initially, on a fixed time and day to instill greater confidence among the

customers and facilitate increased banking transactions through BCAs.

9. The BCA must be responsible for routing all transactions of all villages

in the assigned villages so that effective marketing and follow up can

take place.

10. It is necessary to ensure that there is a continuous improvement in the

quality of services through the BCAs.

11. There should be regular training and capacity building programmes of

the BCAs and ensure BCA certification within 3months of appointment.

–o-0-o-


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ANNEXURE-VI

TECHNICAL BID FORMAT

Sl. No.

PARTICULARS DETAILS

A. BIDDER’S PROFILE IN BRIEF :

1 Name of the Company

2 Address of Registered Office / Head Office

3 Phone Number with STD Code

4 Fax Number

5 E-mail id 6 Constitution

(Public / Pvt Ltd Co./ Partnership/ Proprietorship)

7 Date of Establishment: 8 Name of Chief Executive:

9 Name of Contact Person with regard to this RFP : Landline Phone No. : Mobile No. : Fax No. : e-mail id :

10 Line of Activity 11 Date from which the bidder is

experienced in similar type of activity

12 Products Developed / Serviced (Attach product literature)

13 Details of Quality Certifications Obtained for the Company & its Products, such as ISO-9001:2000 etc. (attach Xerox copies).

14 Total Number of Employees: 15 PAN Number

16 In case of a Company, furnish data on share holding pattern, names of


Page 61 of 118

Sl. No.

PARTICULARS DETAILS

main promoters and names of Directors.

17 a. Furnish following details for getting report from CIBIL on the Company, Promoters and Directors. B. Confirm having attached a separate Sheet tabulating the following : Name of the Company /

Promoters / Directors Detailed address with Pin Code Date of incorporation / Date of

Birth of an individual PAN Number allotted TIN Number of the Company

B. FINANCIAL STRENGTH :

1.

2013-14 2014-15 2015-16* a. Total Turnover (in Crs.)

b. Net Profit / (Loss) (in Crs.)

c. Share Capital (in Crs.)

d. Tangible Net worth (in Crs.)

d. Total Liabilities (in Crs.)

e. Total Assets (in Crs.)

* Provisional, If not Audited

2. Submit Audited Financial Statements for the previous three years (In case of a wholly owned subsidiary, audited financial statements of parent/holding company duly certified by a Chartered Accountant to

2013-14

2014-15

2015-16*

* Provisional, If not Audited


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Sl. No.

PARTICULARS DETAILS

befurnished.)

3. Submit Income Tax Returns / Assessments for the previous three years

2015-16

2016-17

2017-18

4. If the bidder is a Company, please confirm that the Memorandum and Articles of Association do not prohibit the Business Correspondent activity (Attach copies of Memorandum and Articles of Association and mark the relevant provisions with a highlighter).

5. Submit the letter of undertaking as per Annexure-XII.

6. Submit compliance to Eligibility Criteria with the requisite proof, as per Clause-5.

C. TECHNICAL STRENGTH :

1. a. Confirm that line-item wise requirements mentioned in Annexure-I and Annexure-II are complied by you. b. In case of non-compliance or deviation/variance to the line item-wise requirements, ensure to mention the same as per Annexure-VII. It is thus confirmed that Bidder is complying with all the requirements excepting those mentioned in thisAnnexure-VII.

2. Indicate the proposed technology solution provided from the following:


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Sl. No.

PARTICULARS DETAILS

i) Mobile device with FP biometric scanner, printer and Magnetic Stripe reader etc. Capability of device connecting to V-Sat through wired or wireless technology

ii) HHM/Micro ATM with FP Biometric scanner, printer, IRIS scanner, Magnetic Stripe/EMV chip reader, PIN Pad etc. Capability of device connecting to V-Sat through wired or wireless technology iii) Laptop with HHM with FP Biometric scanner, IRIS scanner, printer, Magnetic Stripe/ EMV chip reader, PIN Pad etc. Capability of device connecting to V-Sat through wired or wireless technology iv) Tablet with FP Biometric scanner, IRIS scanner. Printer, Magnetic Stripe/ EMV chip reader, PIN pad etc. Capability of device connecting to V-Sat through wired or wireless technology

3. Bidder is required to describe proposed Technology Solution covering the following :

Clear articulation and description of the understanding of the scope of work and technology solution proposed by the bidder

Extent of compliance to requirements specified in the scope of work (Annexure-I), clearly mentioning reservations / deviations if any with cross reference to the relevant clause of RFP as per Annexure-VII.


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Sl. No.

PARTICULARS DETAILS

Areas of non-compliance.

Strength of the Bidder to provide services including examples of similar work completed.

Adherence to best practices prevailing in the industry.

Business continuity and Disaster recovery facility

4. Experience of the Bidder on similar assignments implemented in the past in tabular form :

Name of the client

Name and contact details of the dealing official of the client

Nature of project

Size of the contract (Order value Rupees in lakhs)

Present status of the project

Highlight the services involved in the projectlikenumber of enrolments made, smart cards issued, no of transactions done, etc., which are similar in nature to the services to be rendered in this RFP.

5. Please give information on Key business and technology personnel: a) Name of the Staff b) Designation c) Educational qualification d) Experience e) Area of expertise


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Sl. No.

PARTICULARS DETAILS

D. BACK TO BACK BC ARRANGEMENTS MADE, IF ANY 1. Name and address of the Agency for

Back to Back BC arrangements, conforming to the provisions under Annexure-V.

2. Experience of the BC Agency

3. Name of Banks with whom BC Agency is working

4. Back to Back Arrangements valid upto

E. REFERANCES WHERE SIMILAR PROJECTS ARE IMPLEMENTED

1. Name of Bank / Govt. Agency with Contact details

2. Services offered and No. of Cards used

3. Implementation taken up, Since 4. Present status of implementation

F. DETAILS OF BIDDER’S SUPPORT CENTRES 1. City / Town

2. Detailed Address 3. Name of Officer in Charge with

Contact Number

4. No. of qualified and trained personnel

5. Maintained inventory of the critical spare parts

G. ARCHITECTURE OF FINANCIAL INCLUSION SYSTEM

1. Whether Architecture Proposed is Centralized? Briefly explain the architecture.

2. Whether the solution proposed is “Scalable?” if so, justify.

3. Whether the solution proposed provides reliable security end-to-


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Sl. No.

PARTICULARS DETAILS

end? Explain the security measures .

4. Whether the solution proposed is having redundancies, if so details

5. Indicate the response time for different transactions

6. Indicate the minimum Bandwidth requirements

7. Whether easier back up and retrieval mechanisms are built in to the solution proposed?

8. Business Process Continuity features

9. Whether the proposed solution is all set for DR Replication

10. Specify the standards / protocols used in the solution offered

H. INTREROPERABILITY

1 Supports Interoperable with Other Acquirers and Issuers

2 Comment on the interoperability of the solution proposed with other applications/platforms.

3 Supports AEPS transactions through NPCI / UIDAI

Support of RuPay card transactions through NPCI/UIDAI

I. CONFIRM SUBMISSION OF FOLLOWING

1. Annexure-I Compliance to Scope of Work

2. Annexure-II Compliance to Functional Requirements

3. Annexure-III Compliance to Fixed charges payable to SP and sharing a portion of it with BCA; and authorising Bank to make direct payment to BCA as indicated therein.

4. Annexure-IV Indicative commercial


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Sl. No.

PARTICULARS DETAILS

Bid with relevant noting. Unit Prices should not be mentioned.

5. Annexure-VII Statement of Compliance / Deviation

6. Annexure-VIII Technical Evaluation for Technology .

7. Annexure-XI Offer Covering Letter

8. Annexure-XII Letter of Undertaking 9. Bank Guarantee as per Annexure-

XIII for Rs.30.00 Lacs.

10. DD/Banker’s Cheque towards Cost of Bid.

11. Power of Attorney / Board Resolution/Letter from Director etc., authorising the signatory

(Signature of the Bidder with Seal)


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ANNEXURE-VII STATEMENT OF COMPLIANCE /DEVIATION

All Terms and Conditions - Commercial and Technical Requirement We hereby agree to abide by all the terms and conditions stipulated by the Bank in this RFP including all addendum, corrigendum etc., issued by the Bank and certify that the Bid response submitted by us confirm to the specifications stipulated by youexcept the items mentioned below :

Sl. No. of

Deviations

Clause No. as per RFP

Page No. of the RFP

Brief Description of the Provision in RFP

Deviation and Remarks by the Bidder

A. COMMERCIAL :

1.

2.

3.

4.

5.

B.TECHNICAL :

1.

2.

3.

4.

5.

Signature of the Bidder with Seal of company


Page 69 of 118

ANNEXURE-VIII

A. TECHNICAL EVALUATION:

Sl. No.

Traits Max

Marks Reply of Bidder

Marks Awarded

1 Hand held machine to be supplied to comply with Micro ATM standards version 1.5.1

5

2 Capability of supporting e-KYC while enrollment of customer for account opening.

4

3 The solution shall be capable of handling Bankingproducts (Prods) such as opening of SB,RD& Term deposit accounts, Remittances, Loans, cash deposits, withdrawals, balance inquiry, mini statement, Micro insurance, Micro Pension Govt. payments like NREGP, SSP, various DBT payments etc. Min 5 Prods – 3 Marks 5 to 8 Prods – 4 Marks More than 8 Prods– 5 Marks

5

4 The solution should ensure secure (encrypted) communication between HHMs, inter FI Server of the Bidder and Bank’s Gateway and to comply with acceptable security standards such as SSL/https for data download and upload.

3


Page 70 of 118

Sl. No.

Traits Max


Marks Awarded

5 Capacity of the Solution: No of financial transactions supported per day. Upto 100 --1 Marks 101 - 200 --2 Marks 201- 300 -- 3 Marks 301 - 400 -- 4 Marks More than 400 -- 5 Marks Whether the Hardware and Software can be further sized to meet additional transactions envisaged

5

2

6 Voice guidance mechanism in local language

4

7 Provide audit trails 4

8 Parameterization capability for settings at upper /lower limits of all type of transactions in the Micro ATM /Intermediary server of the Bidder

5

9 Capability to support inter operability

5

10 Capability to support Aadhaarseeding

5

11 Capability to support Mobile seeding

5

12 Disaster recovery management as apart of Business continuity Plan

5

13 Scope of Facility Management

3

14 Does the bidder undertake 5


Page 71 of 118

Sl. No.

Traits Max


Marks Awarded

all activities of BC along with the Technical solution (5 marks) OR have Back to Back arrangements with other BC (3 marks).

15 Total no of banks in India for which similar solution has been successfully Implemented 1 to 3 Banks – 3 Marks 4 Banks - 4 Marks 5 & more Banks – 5 Marks

5

16 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.

4

17 The solution should have provision for taking backups of the transaction data and master data at periodical intervals and conform to Backup standards as per Information Technology Act, 2000.

3

18 The Front end equipment should support connectivity through any communication channels such as GPRS, GSM, CDMA, PSTN and V-SAT (wired or wireless)depending upon

4


Page 72 of 118

Sl. No.

Traits Max


Marks Awarded

the type of connectivity available at the local place of operation.

19 Front end equipment to offer various Services/Options available in the application software, on booting, only after biometric authentication of BCA through Aadhaar.

4

20 Any activity through the front end equipment should be processed with biometric authentication of the customer.

4

21 Front end equipment and its application should be capable to fetch software upgrades, revision in business rules etc from the servers

5

22 Capability toconnect Printer, Biometric Scanner and other external devices through Blue tooth or USB in secured manner

3

23 Capability to print receipts of all type of transactions in local language.

3

24 TOTAL 100

-o-0-o-


Page 73 of 118

ANNEXURE-IX

Standard Operating procedure for BC/BCA/Bank Mitr Logistics at the BC /Business Correspondent Outlets 1. Display of signage as approved by the Bank. (Signage by Bank

and Registers by Bidder)at BCO 2. Display of Phone numbers of Help line, Bank officials, grievance

redressal officer (link Branch / Circle Officeetc) at BCO 3. Display of the list of Dos and Do not’s for customers at BCO 4. ID card to be issued to BCA by BC. 5. Ensure availability of required Stationery – forms of account

opening,Micro insurance, Micro pension, loan application forms, check lists, publicity materials / pamphlets / job cards for banking products provided by Bank.

6. Appoint Bank Mitra with minimum qualification (preferably 12th pass) and obtain IIBF/Bank approved certification within one month and ensures that he/she works from a fixed location (a room with minimum space of 10x10 ft) for branding purpose and extend banking service to the customers by visiting the villages allotted.

7. Bank Mitr is treated as inactive if he fails to login and do the transactions continuously for 3 days and necessary action will be taken including replacing of bank Mitr.

8. Bank Mitr shall NOT have any subcontracts for managing BC outlets and operate himself and there shall not be any intermediate layer between SP and BankMitra.

Maintenance of Registers: 1 Records of customers enrolled; 2 Account opening forms sent and pending to be sent to

BaseBranch; 3 Aadhaar seeding requests register. 4 Mobile seeding requests register 5 Customer contact register; 6 Visitors/Bank officials visit register. 7 Details of Name of grievance redressal official and contact

number.


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8 Ensure provision like Cash box and safe keeping of Field devices, registers.

9 List of Do’s and Don’ts for customers to be displayed. 10 Pass book and RuPay cards issued to customers register. 11 Complaints register 12 Registers for noting applications canvassed for different

insurance and pension products. Image and TrustBuilding 1. SP/BCAs to create awareness about the channel among the

area of operation. 2. SP/BCAs to market Banking products and attract customers in

the Area of Operation 3. BCs to do due diligence for BCA selection.

4. SP to Arrange for training and capacity building of BCAs and

complete certification of BCA in three months of appointment. 5. Ensuring Wearing of uniform by Bank Mitrwhile on duty. Technical Requirement 1. Safe upkeep of front end field devices like HHM, Mobile

devices, printer, scanner,PIN Pad ,VSATsetc 2. Keepdevice batteries charged and in ready mode for providing

services. 3. Maintain help line number of technology / device provider. 4. Download updated versions of the front end applications. 5. Keeping the PIN / BCA cards / Passwords secret to obviate any

possibility of unauthorized use of the technology device. Operational Requirement 1. Approval from Bank to establisha BCO in the Area of Operation. 2. Account opening form filling, collection of required KYC

documents, photograph and biometrics of the customers etc. 3. Enrollment of customer as per the process approved by bank. 4. Digitization of customer details within 3 days of customer

enrollment and safe and secure transmission of data to bank.


Page 75 of 118

5. Coordinating with base branches to expedite verification and upload of customer data in CBS for account creation.

6. Facilitating Distribution/delivery of RuPaycard / activation of the card / delivery of passbook on account being opened in CBS of the Bank.

7. Maintaining secrecy about customer account information. 8. Maintenance of sufficient balance in the BC settlement account

to support customer transactions and fund settlement with the bank. Seasonal requirements for disbursals under EBT and DBT requirements are also to be met and sufficient balance maintained. Under no circumstances, the customer is sent back for want of funds.

9. Increase of BCA cash threshold limits to ensure continuity in customer services as per bank’s requirement.

10. Arrange for availability of sufficient physical cash at BCO. 11. Ensure replenishing / collection of surplus cash from/to Base

Branch. 12. Service Provider to ensure availability of consumables like

printing paper, ribbon etc at the BCO. 13. BCA to ensure issuance of system generated receipt to

customers on completion of transaction both for successful and failed.

14. Service Provider to define dispute resolution mechanism. 15. Forward any feedback / complaint received from the customers

to the bank. 16. Define Risk mitigation process in operations. 17. Service provider to arrange insurance for cash on hand, in

transitetc; and devices with BCA/BCO. 18. Service provider to make alternate arrangement to ensure

continuity of banking services to the customers, in case of temporary / permanent termination of BCA at any outlet.

Legal Requirement 1. Service Provider to note that Persons / BCAs engaged by them

are not the employees of the bank; and bank shall not be responsible in any manner for payment of wage remuneration nor payment for PF, EPF etc., due to such persons.

2. Service Provider is solely responsible for any frauds, misdeeds etc whatsoever committed by the Bank Mitr and SP shall make


Page 76 of 118

good of any financial loss to the Bank or Bank customers due to the acts of BC or BCAs.

The Bank shall not be responsible in any manner for any penalty/fine imposed by any statutory body/authority towards any dues/liabilities towards any of the above.

-o-0-o-


Page 77 of 118

ANNEXURE-X

DETAILS OF BUSINESS CORRESPONDENT OUTLETS

Number of Sub-Service Areas and the urban wards to be covered, on PAN India

basis, under this RFP are as under:

Sr. No. Details Quantity

1. Sub-Service Areas 528

2. Non-SSA Areas 99

3 Bank Sakhi 104

TOTAL 731

a) In addition to the above, Bank at its discretion may increase / decrease

the quantity to the extent of 35%. Additional Sub-Service Areas/Wards,

if any allotted, will be furnished to the successful bidder on later dates.

b) Sub-Service Areas where Bank opens their brick and mortar branches, at

a later date, will stand reduced from the total number of Sub-Service

Areas mentioned above.

-o-0-o-


Page 78 of 118

ANNEXURE-XI OFFER COVERING LETTER

The General Manager

Karnataka Vikas Grameena Bank,

Financial Inclusion Department,

Head Office,

Belagavi Road

Dharwad – 580 008.

Sub: RFP for appointment of Service Provider for BC Services

Ref:

Dear Sir,

1. We have examined the RFP and we offer to extend Business Correspondent

Services including the technology service as per the terms, conditions and

scope of services spelt out therein, and in accordance with the schedule of

prices indicated in the Commercial Bid and made part of this Bid, which may

be considered by the Bank for conducting the reverse auction.

2. While submitting this Bid, we certify that:

a) Prices in the Bid have been arrived at without agreement with any other

Bidder of this RFP for the purpose of restricting competition.

b) The prices in the Bid have not been disclosed and will not be disclosed to

any other Bidder of this RFP.

c) We have not induced nor attempted to induce any other Bidder to

submit or not submit a bid for restricting competition.

3. We certify that the information/data/particulars furnished in our RFP are

factually correct. We also accept that in the event of any information/

data/ particulars proving to be incorrect, Bank will have the right to

disqualify us from the bid.

4. We undertake to comply with the terms and conditions of the RFP. We

understand that the Bank may reject any or all of the offers without

assigning any reason whatsoever.


Page 79 of 118

5. We confirm that the Bid submitted by us is valid for a period of one year

from the date of opening of the Bid.

6. We have submitted the EMD as per the terms of the RFP and are agreeable

to the forfeiture conditions mentioned therein.

7. The single point of contact for seeking information / clarifications, etc.,

relating to this Bid is furnished below:

a) Name of the Authorized Person and Designation:

b) Detailed Postal Address for communication:

c) Email id of the Authorized Person:

d) Contact No. 1) Land line with STD code

2) Mobile No.

e) Fax No with STD code:

Yours faithfully, (Name and Designation)

For and on behalf of _______________________


Page 80 of 118

ANNEXURE-XII (Letter of undertakings on the letter head of the Bidder)

The General Manager

Karnataka Vikas Grameena Bank,

Financial Inclusion Department,

Head Office,

Belagavi Road

Dharwad – 580 008.

Dear Sir

Ref: Bid Ref. We refer to your above mentioned RFP and undertake the following: 1. We hereby confirm that neither <Name of the Bidder>, the bidder, nor our

Promoters and Directors are defaulters to any financial institution in India and abroad.

2. We have not been reported by any Public Sector Bank / Financial

Institutions to Indian Banks’ Association (IBA) for any malpractice, fraud, poor service, etc. and that we are not on the caution list maintained by IBA, listing service providers whose services have been terminated by other Banks.

3. We hereby agree to submit Security Deposit / Performance Guarantee at

the rate of 10% of the Contract Value. 4. We hereby agree that we will follow the general guidelines mentioned in

Annexure-V while appointing the Business Correspondent Agents. 5. We hereby agree to open a current account with the Bank and also offer

our concurrence to share that portion of the charges payable to the BCAs (as per Annexure-III&IV) to be decided during the reverse auction process. Also, from out of Bills/Invoices/Claims to be submitted by us to the Bank for payment, we hereby authorize the Bank to credit the payments to our account with you and transfer that portion of the charges payable to the respective BCA's accounts, as per the details mentioned in the RFP.


Page 81 of 118

6. We confirm that our entity is not owned or controlled by any Director or

Officer/Employee of the Bankor their relatives, as per the meaning assigned under Section-6 of the Companies Act 1956.

7. We confirm that we are not involved in any major litigation that may have

an impact of affecting or compromising the delivery of services required under this RFP.

8. We confirm that we are agreeable to take up FI implementation in

additional locationsover and above the quantities mentioned in the RFP on the same Commercials and Terms and Conditions being finalized for the RFP.

9. We confirm that we will not collect non-refundable deposits from BCAs. 10. The Business Correspondent should not collect interest free deposits from

BCAs. 11. We confirm that we will own the Hand Held Devices and their peripherals. 12. We confirm that we will not, in any way, convey to the BCAs that they can

claim jobs with the bank on account of becoming BCA. 13. We confirm that we will enter into a comprehensive agreement with BCA.

A copy of such agreement is submitted along with the Technical Bid and we will include suggestion given by the bank, if any, in the BCA agreement.

Yours faithfully, (Authorized Signatory with Seal)


Page 82 of 118

ANNEXURE-XIII

FORMAT OF BANK GUARANTEE / BID SECURITY Whereas ______ (herein after called “the Bidder”) has submitted its response to Bid vide RFP No. ________________ dated __________, offering End-to-End solution through Business Correspondent Services forimplementation of Financial Inclusion projects (hereinafter called “the Bid”) KNOW ALL PEOPLE by these presents that we ___________ having our Registered Office at ___________ (hereinafter called “the Bank”) are boundtoSyndicateBank, Corporate Office, FI Department, Gandhinagar, Bangalore(hereinafter called “Purchaser” or “Bank”) in the sum of _____ for whichpayment well and truly to be made to the said Purchaser, the Bank binds itself,its successors and assigns by these presents. Affixed with the Seal of the saidBank this ____ day of __________2018. THE CONDITIONS of this obligation are: 1. If the Bidder withdraws its Bid during the period of Bid validity specified

bythe Bidder on the Bid Form; or 2. If a Bidder fails to participate in Online Sealed Bids/ Reverse Auction

Process; or 3. If the Bidder, having been notified of the acceptance of its Bid by the

Bankduring the period of Bid validity: a) Fails or refuses to furnish the Performance Security, in accordance with

theterms of the Bid; or

b) Fails to supply the Goods within the stipulated period; or

c) Fails to accept the Purchase Order. We undertake to pay the Bank up to the above amount upon receipt of its firstwritten demand, without the Bank having to substantiate its demand, providedthat in its demand the Bank will note that the amount claimed by it is due to it,owing to the occurrence of one or more of the above conditions, specifying theoccurred condition or conditions.

1. This Guarantee will remain in force up to and including -----------------, 2018, and any demand in respect thereof should reach the Bank not later than the abovedate.

Notwithstanding any other terms contained herein;


Page 83 of 118

a. This guarantee is irrevocable during the period of its currency and shall not be revoked without the prior consent of the Bank in writing.

b. We further agree and undertake to pay the Bank without demur the amount demanded by the Bank in writing notwithstanding any difference or dispute that may exist or arise between the Bank and the Bidder.

(Signature and Seal of Bank)


Page 84 of 118

ANNEXURE-XIV

SERVICE LEVEL AGREEMENT

(Subject to Modification and approval by the Bank)

This agreement executed at DHARWAD on the ________________________ betweenKarnataka VikasGrameena Bank, a Regional Rural Bank constituted and functioning under Regional Rural Bank Act 1976 and Govt of India Amalgamation dated 12.09.2005 having its Head Office at Belaum road Dharwad-580008. Represented by its General Manager, Sri I.G.KumarGoud hereinafter referred to as Bank which term and expression shall unless repugnant to the context or meaning thereof shall include successors and permitted assigns of the First Part

AND

______________________, incorporated under Companies Act having its registered office _________________________ and principal place of business _________________________ hereinafter referred to as “Service Provider (SP)” which expression shall unless repugnant to the context or meaning thereof shall include its successor & permitted assigns of the Second Part.

WHEREAS the Bank is desirous of availing services to facilitate its business growth and the SP has offered to provide services as may be required by the Bank.

NOW THEREFORE this agreement witnessed as under:

1. SCOPE OF SERVICES

1.1 The SP agrees to provide the services as per Schedule A, as per instructions and as may be required by the Bank from time to time, in the habitations coming under the Bank’s allotted Sub-Service Areas and Wards of Urban clusters specified in Schedule B.

1.2 SP shall ensure that its agents/employees, a) are properly trained to handle with care, their responsibilities

particularly aspects like soliciting customer, hours of calling, privacy of customer information and informing the correct terms and conditions of the products offered etc.


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b) adhere to extant instructions on Fair Practices Code for lending as also their own code for collection of dues or in the absence of such a code at the minimum adopt the IBA’s code for collection of dues and repossession of security. It is essential that they refrain from action that could damage the integrity and reputation of the Bank.

c) Shall not resort to intimidation or harassment of any kind either

verbal or physical against any person in their debt collection efforts, including acts intended to humiliate publicly or intrude the privacy of the borrowers’ family members, referees and friends, making threatening and anonymous calls or making false and misleading representations.

1.3 SP shall adhere to the performance standards in respect of services and

products as detailed in Schedule ‘A’ hereunder written, which forms part & parcel of this agreement. The Bank reserves the right to change / vary / the contents of Schedule ‘A’ by advising the same to SP in writing and upon such advise, the amended Schedule ‘A’ shall become effective.

1.4 The list of entities from which the BC can engage BC Agents and the

general guiding principles for the same are given in Schedule C. 1.5 The technological service standards for the services to be offered are in

Schedule D. 1.6 The performance of the Service Provider will be reviewed, BCO/CSP

wise, by the Bank every month initially, and thereafter at such intervals as the bank may decide.

1.7 It is expected that Bank Mitr /Business correspondent Agents (BCAs) are

engaged and are activated in the villages / locations coming under the jurisdiction of the Sub-Service Areas and Urban Clusters, the details of which will be shared by the Bank, within one month from the date of award of contract.

1.8 It is also expected that each BCA will continue to enroll the customers in

SSA allotted to them for account opening.


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1.9 The SP/BCA shall in consultation with the bank/branch announce to the customers, the place where they can access and operate their account. However, Bank shall have the right to direct the SP/BCA regarding the place/premises, working hours, etc. of the SP/BCA.

1.10 The BCA shall compulsorily wear the uniform&Identity card provided to

him by the SP /or Bank when they perform the services for the bank. Further the SP/BCA shall answer only to the queries of the customer related to that customer only and shall not reveal / discuss matters pertaining to others.

1.11 The SP shall engage only individuals with good track record and

antecedents as Bank Mitr / BCA will be performing the services under this agreement, on behalf of the Bank. For this purpose, the SP shall take all necessary steps for verifying the antecedents and track record, including obtaining report from police, exercise due diligence and also ensure following while engaging BCAs.

a) BCA should be hailing from the same area/permanent resident of the

area at least for the past 3 years. b) BCA should be within the age limit of 60 years and should be able to

read, write and speak the local language, besides English. c) Bank Mitra should be with minimum qualification (preferably 12th

pass) and obtain IIBF/Bank approved certification within 3 months and ensures that he/she works from a fixed location (a room with minimum space of 10x10 ft) for branding purpose and extend banking service to the customers by visiting the villages allotted

d) BCA should be non political, without any case for criminal act registered against him.

e) Bank Mitra appointed should abide by the dress code as specified by Bank / GOI.

f) BCAs should be physically fit to move around the areas envisaged to be covered.

g) SP shall obtain photos, address proof, conduct certificate from two respectable persons and other required documents from BCA while engaging /appointing them. Bank has the right to publish the photo and other details of the BCA and other related staff of SP in the Bank's website.

h) SP shall ensure that BCAs engaged by them are not in service after attaining the age of 70 years.


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i) SP shall properly guide the BCA including giving training to them at their cost for providing services under this agreement and shall ensure that BCAs are providing the service within the area/jurisdiction allotted to them.

j) SP shall ensure that BCA shall not render similar services to anybody while acting as BCAs to them, unless specified by the Bank.

k) SP agrees that all clauses as applicable to them under this agreement shall be applicable to the BCA and for this purpose, the SP shall enter into an agreement with their BCA, which shall be strictly in conformity with this agreement with corresponding clauses in the said agreement and shall ensure that BCAs render their service strictly in tune with the terms and conditions of the agreement and applicable RBI/GoI/MoF guidelines from time to time.

l) SP agrees that the bank reserves the right of approval of all BCAs appointed by them. Approval of BCA by the bank shall not discharge the SP from any of their liability under this agreement, whether express or implied or constitute waiver of any of the right or create any obligation/liability on the bank under this agreement. Further Bank shall have the right to ask for the change of BCAs .appointed by SP at the cost of the SP, if bank feels that the services of the BCAs are not up to the expected level or bank receives any adverse report about the functioning of the BCA.

m) SP agrees that they shall be fully responsible for all acts and omissions of their BCAs and nothing in this agreement shall be construed to create any contractual or other relationship between the bank and BCA appointed by them. Any dispute between the SP and their BCA shall be dealt by the SP without reference to the bank and the bank shall not take cognizance of such things.

n) SP shall duly notify the bank, immediately on termination of their agreement with the BCA and shall ensure that the obligation of BCA with regard to confidential information shall survive even after termination of the agreement. The SP agrees to send a monthly report to the Bank, of such termination and re/appointment before 5th of the succeeding month.

o) All charges towards engagement of BCA shall be borne by the SP. p) On the termination of the services of the BCA, SP shall inform to all

the customers in the area at their own cost, about his termination and to ensure thatBCA does not deal with the customers, forthwith, in connection with any of the transaction under this agreement.

q) BCA/Bank Mitra is prohibited from charging any fee to the customers


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for the services rendered by them on behalf of the Bank. r) Bank Mitra / BCAs are enrolled for Aadhaar and Aadhaar is seeded in

their accounts in Bank and they should login to Micro ATM through Aadhaar.

2. MAINTENANCE OF RECORDS BY BC AND MONITORING / INSPECTION BY THE BANK.

2.1 SP specifically agrees to maintain all records accounts including registers / documents etc. as per instructions of the Bank from time to time and ensure safe and proper custody of all records, accounts including documents etc.

2.2 SP specifically agrees that the Bank shall be entitled to inspect and audit the records maintained by SP through its officers/employees or agents / auditors as may be decided by the Bank at its sole discretion and SP hereby undertakes to promptly produce all records and information required for this purpose / for the purposes of inspection and audit. SP shall provide access, to the officers / employees / representatives / agents or auditors of the Bank to the premises / places where such records are kept / maintained. The Bank shall have a right to obtain copies of any audit report, review reports and findings made on the SP in connection with the services performed by SP for the Bank.

2.3 Further, SP specifically agrees that it shall allow access to Reserve Bank of India (RBI) or persons authorized by RBI or its employees/officers or other persons to inspect and access the documents, accounts, records of transactions and all necessary information in possession of, or stored or processed by the SP within a reasonable time. The persons authorized by RBI shall have right to obtain copies of the records, information etc. in possession of SP. SP further agrees that in case access is not allowed to the persons authorized by RBI for the purposes of inspection which results in imposition of supervisory fees by RBI upon the Bank, and the Bank is required to pay such supervisory fees to RBI, SP shall be liable to reimburse to the Bank such fees including any penalty, interest levied and recovered by RBI.

2.4 SP specifically agrees that the Bank has full right to monitor and assess the performance of services by SP and wherever the Bank discovers any deficiency or non-performance of the services up to the mark, the Bank shall instruct the SP in writing and SP agrees to rectify the deficiencies or to ensure compliance of the instructions of the Bank within a maximum of one month.


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2.5 SP agrees to prepare and produce a `Business Continuity Plan’ for the purposes of ensuring continued rendering of services undertaken by the SP to the Bank or latest within one month from the date of execution of the agreement. SP agrees to make necessary changes to the Business Continuity Plan or Contingency Plan as per instructions / directions given by the Bank after examination of the plan submitted by the SP.

3. CONFIDENTIALITY

3.1 SP is aware that all information disclosed to the SP by the Bank and all records, accounts, documents maintained by SP are confidential in nature and having regard to the sensitive nature of the information and records, specifically agrees to maintain secrecy and confidentially of all the information and records, accounts in respect of the outsourced services in the same manner & degree of care as SP would ensure for its own confidential & sensitive information. SP shall ensure that appropriate and suitable undertaking / agreements are obtained and maintained from its employees, agents and representatives as the case may be to ensure compliance with confidentiality obligations of SP.

3.2 SP agrees to indemnify and hereby keeps the Bank indemnified against

all actions, claims, loss, damages, Costs, Charges, expenses (including Attorney / Advocate fees and legal expenses) which the Bank may suffer or incur on account of breach of confidentiality obligations as per clause 3.1 above by SP or its employees, agents, representatives. SP further agrees to make good the loss suffered by the Bank upon its first demand by the Bank i.e. on receiving the demand in writing informing the amount of loss suffered, which shall be final, conclusive and binding on SP.

3.3 It is agreed between the parties that all the data and other information

supplied to the SP during the course of engagement is proprietary information owned by the bank and the SP shall not have any claim or right or ownership over such information.

3.4 SP or their staff shall not disclose or divulge at any time to any person,

any communication made to them in confidence or otherwise by the Bank or by the customer directly or indirectly or any information directly or indirectly connected with or relating to or in respect of business of the Bank gained/received or acquired in the course of the engagement of services.


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3.5 SP undertakes to take utmost care and diligence to hold and keep secure

and confidential at all times and avoid publication, dissemination or disclosure to persons other than their authorized personnel as permitted by the Bank and to prevent the use of any Confidential Information relating to organization, structure, procedures, financial details and other matters relating to the business affairs of the Bank and all documentation, communications and information relating to the Bank and customers whatsoever written or otherwise provided to them in the course of their service.

3.6 SP undertakes and agrees to isolate and clearly identify the Bank and its

customers' information, documents, records, data and assets to protect the confidentiality of the information.

3.7 SP shall at all times during the period of engagement will honestly and

diligently discharge or fulfill the duties and/or obligations in accordance with the terms and conditions mentioned herein and the rules of business of the Bank in force from time to time, keeping highest confidentiality in the matter.

3.8 However, the Confidential Information shall not include any

informationthat: Was publicly known and made generally available in the public

domain prior to the time of disclosure.

Becomes publicly known and made generally available.

Is required to be disclosed by law.

3.9 In the event that SP is required to disclose Confidential Information by Law, SP agrees to: Promptly notify the bank of the existence, terms and circumstances

surrounding the requirement;

Consult with the bank on the advisability of taking legally available steps to resist or narrow such requirement or to waive compliance, in whole or part and;

Furnish only that portion of the Confidential Information as is legally required to be furnished /disclosed.

3.10 The obligation of SP under this clause shall survive even after expiry of the agreement by efflux of time or termination.


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4. RELATIONSHIP BETWEEN THE PARTIES

4.1 It is specifically agreed that SP shall act as independent service provider and shall not be deemed to be the Agent of the Bank except in respect of the transactions/services which give rise to Principal Agent relationship by implication.

4.2 Neither SP nor its employees, agents, representatives shall hold out or

represent as agents of the Bank. None of the employees, representatives or agents of SP shall be entitled to claim permanent absorption or any other claim or benefit against the Bank.

5. COMPLIANCE WITH LAWS BY SP

5.1 SP hereby agrees and declares that it shall be the sole responsibility of SP to comply with the provisions of all the applicable laws, concerning or in relation to rendering of services by SP as envisaged under this agreement.

5.2 SP shall procure and maintain all necessary licenses, permissions, approvals from the relevant authorities under the applicable laws throughout the currency of this agreement.

5.3 SP 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, Bonus or other benefits to which they may be entitled and the Bank shall have no liability in this regard.

5.4 SP hereby represents and warrants that it has full authority to enter into this Agreement and render the services as envisaged under this agreement and all Corporate or other necessary approvals have been obtained for entering into this Agreement with the Bank. Further, the persons executing this agreement on behalf of SP have full authority and power to execute this agreement and bind SP.

6 FEES, TAXES, DUTIES, PAYMENTS AND PENALTY

6.1 SP shall be paid fees and commission, based on the services availed at rate/s determined by the Bank and detailed in schedule E, subject to the services rendered are to the full satisfaction of the Bank. All payments made by the bank to SP shall be subject to TDS as applicable. SP shall not be entitled to claim any other amount by way of reimbursement,


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remuneration, honorarium, allowances or otherwise, or benefits of any other type whatsoever. Further no fee shall be collected directly by the BCAs from the customers. The remuneration payable is for the service rendered by SP including their BCA and SP is not entitled for any amount over and above the remuneration payable to them.

6.2 SP will submit invoices for the current month in the subsequent month along with the required system generated reports so as to show theterminal transactions done during the month as annexure.

6.3 SP hereby authorizes to debit their current account no.___________ with, Karnataka VikasGrameena Bank, _________ branch for the total amount payable to the BCAs as per the enclosure submitted along with the invoice. The bank will credit the individual accounts of BCAs once the payment is effected by the Bank and the net of the amount payable will be credited to the account.

6.4 All other taxes duties and other charges which may be levied excluding service tax shall be borne by the SP and the Bank shall not be liable for the same. Bank will reimburse service tax at actual.

6.5 All expenses, stamp duty and other charges expenses in connection with execution of this agreement shall be borne by SP.

6.6 Without prejudice to the banks’ right to terminate the agreement, for any defective service or inability to provide the service for any reason or for non-functioning of the BCO for any reason, beyond 10 (ten) working

days continuously, a penalty @ `. 500/- per day (from the 11th day

onwards) will be charged with a maximum of ` 5000/- for each of the

Business Correspondent outlet from the Service Provider.

7 BUSINESS CONTINUITY PLAN (BCP)

7.1 SP agrees to appoint BCA immediately in case of termination/resignation/long absence etc., of the BCA already appointed of BCA and ensure resumption of services within the maximum period of 10 days.

7.2 SP agrees to reconcile the cash, collect all the records, Hand Held

Devices etc., and immediately configure the HHD to the new BCA by providing BCcard, access etc.

7.3 SP agrees to ensure closure of Settlement account of the

terminated/resigned BCA and arrange to open settlement account of


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new BCA. 7.4 SP agrees to notify the bank such changes immediately along with any

adverse developments if any that could significantly impact the service provided to the Bank / its customers.

7.5 SP will provide assurance on their state of BCP preparedness once in a

calendar quarter. 8. INDEMNITY 8.1 SP agrees and undertakes to keep and hold the Bank indemnified and

harmless from time to time and at all times due to any expenses incurred by the bank for repairing the equipments that have occurred due to their/BCA misuse and also against all actions, proceedings, claims, counter claims, suits, liabilities (including statutory liability), penalties, demands, charges, costs (including legal costs) and expenses, awards, damages, losses and any other expenses which may be caused to or suffered by or made or taken against the Bank arising out of:

8.1.1 The breach, default of or non-performance of undertakings,

warranties, covenants or obligations under this Agreement by the BC/their BCA;

8.1.2 Any contravention or Non compliance with any applicable laws, regulations, rules, statutory or legal requirements by the BC/their BCA;

8.1.3 Any improper or negligent performance, act or omission or misappropriation of funds of the customer and the bank, improper use of machinery by SP or any of its officers, employees, agents or representatives or BCA;

8.1.4 Any claim or proceeding brought out by any person against the Bank arising out of Confidential Information provided by the BC/BCA without permission of the Bank or breach of confidentiality clause.

8.1.5 Any loss to the money of the bank and customer and the machinery in the custody of the BC/BCA either by his own act or the act of whatsoever nature of its officers, employees, agents, representatives, third parties, BCA etc.

8.1.6 Any claim or proceeding brought out by the customer against the Bank due to failure of the BC/BCA to export and import correct data to and from the server of the Bank; and


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8.1.7 Any claim from third party due to the act of the BC/BCA beyond the actual authority conferred to them by the Bank.

8.1.8 SP 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.

8.1.9 SP 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.

8.1.10 SP 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.

8.2 SP 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.

8.3 SP shall be liable to pay the amount that is found by the Bank due from them on any account whatsoever including costs incurred by the Bank in delisting SP on termination of the services.

8.4 The Bank is also entitled to adjust any amount due from SP on account

of non-compliance of terms and conditions of this Agreement by them from the Security Deposit/bank Guarantee. After adjusting the amount due from SP from the deposit/Bank Guarantee made by them, the balance due, if any shall be paid by SP to the Bank and the Bank's decision as to the liability of SP shall be final and binding on the BC.

8.5 SP agrees that this clause 8 shall survive termination of this agreement. 9. TERM AND TERMINATION 9.1 The agreement shall be valid for a period of THREE years from the date

of its execution and may be renewed for further period of two years on the existing terms and conditions or the modified terms and conditions as may be mutually agreed between the parties.

9.2 The banks reserve the right to terminate the contract at any point of time if,


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The services are found to be unsatisfactory;

There is a consistent failure to maintain the customer satisfaction;

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

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

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

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

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 its convenience, availability of infrastructure, connectivity etc.

9.3 However, before terminating the contract, the bank will give a written notice specifying the defects in services to the Service Provider and ask him to rectify the defects within a period of 30 calendar days. In case the defects are not rectified, the bank would be authorized to terminate the contract with the Service Provider.

9.4 In the event of termination of the agreement, all records, information including documents etc. shall be returned by SP to the Bank as per instructions of the Bank.

9.5 The Bank shall have a right to terminate the agreement immediately by giving a notice in writing to SP in the following eventualities :

If SP applies to the Court or passes a resolution for voluntary winding up of SP or any other creditor / person files a petition for winding up or dissolution of BC.

If any Receiver/Liquidator is appointed in connection with the business of SP or SP transfers substantial assets in favourof its creditors or any orders / directions are issued by any Authority / Regulator which has the effect of suspension of the business of BC.

If SP is unable to render the services up to the mark as envisaged under this agreement upon a reasonable assessment of the


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circumstances by the Bank which affect rendering of the services by SP as envisaged under this agreement.

If any acts of commission or omission on the part of SP or its agents, employees or representatives, in the reasonable opinion of the Bank tantamount to fraud or prejudicial to the interest of the Bank or its customers.

If SP is owned/ controlled wholly/ partly by any other bank operating in India

If any officer/ employee/ director of SP or their relatives as defined in section 6 of the Companies Act, 1956 becomes a director/ officer or employee of the Bank.

If SP fails to submit the Performance Guarantee as per the terms of the RFP.

If Bank wishes to terminate, before commencing system integration without assigning any reason.

9.6 In the event of the termination of the agreement by the Bank pursuant to clause mentioned above, SP shall be liable and responsible to return all records and information in its possession.

9.7 The SP authorizes the Bank to directly credit to respective BCA’s

account, that part of the payment payable to the SP, indicated in Schedules-E for Fixed Charges and Variable charges.

9.8 The performance of SP will be reviewed, every month initially, and

thereafter at such intervals as the bank may decide to identify the bottlenecks and to initiate remedial measures.

9.9 Bidder shall supply infrastructure at theirown 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.

9.10 The Business Correspondent should not collect non-refundable deposits

from BCAs. 9.11 The Business Correspondent should not collect interest free deposits

from BCAs. 9.12 Hand Held Device will be owned by Business Correspondent.


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9.13 The Business Correspondent should not, in any way, convey to the BCAs that they can claim jobs with the bank on account of becoming BCA.

9.14 BC will enter into a comprehensive agreement with the BCA. A copy of

the draft format of such agreement is to be submitted along with the Technical Bid. Any suggestion given by the bank should be incorporated in the BCA agreement.

9.15 If the BCA is engaged as a recovery agent /Business facilitator by the

bank, bank will enter into separate agreement with the BCA. In such case all payment towards the Business facilitator activity will be paid to the BCA.

9.16 The RFP issued by the Bank, vide its reference No. 96/KVGB/FI/KTB/2018 dated15.10.2018and the amendments / corrigendum / clarifications issued by the Bank subsequently forms an integral part of this agreement.

9.17 In case of interpretation of any of the clauses as appearing in the RFP

issued by the Bank vide referenceNo.96/KVGB/FI/KTB/2018 dated15.10.2018along with the amendments / corrigendums / clarifications etc., issued by the Bank and the clauses contained in this Agreement, the provisions contained in this Agreement overrule the provisions contained in the RFP.

10 LIMITATION OF LIABILITY

10.1 In no event the bank will be liable to the SP for any direct, indirect, special, punitive, consequential or incidental damages, or damages for the loss of use, profits or other intangibles or the cost of procurement of substitute services whether based on breach of contract, under statute, in equity, at lawor otherwise, whether or not the SP has been advised of the possibility of such damage.

11 GOVERNING LAWS & JURISDICTION

11.1 The agreement shall be governed and construed in accordance with the Laws of Republic of India.


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11.2 All disputes and differences of any kind whatsoever arising out of or in connection with the Purchase Order shall be referred to arbitration. The arbitrator may be appointed by both the parties or in case of disagreement each party may appoint an arbitrator and such arbitrators shall appoint an Umpire before entering on the reference. The decision of the Umpire shall be final. Such arbitration to be governed by the provisions of Indian Arbitration and Conciliation Act, 1996.

11.3 Notwithstanding anything contained herein above, in case of any dispute, claim and legal action arising out of this RFP, the parties shall be subject to the jurisdiction of courts at Bangalore, India only.

12 NOTICES

12.1 Any notice, invoice, approval, advice, report or any other communication required to be given under this Agreement shall be in writing and may be given by delivering the same by hand or sending the same by prepaid registered mail, facsimile to the relevant address set forth in Schedule F hereof or such other address as each Party may notify in writing to the other Party from time to time. Any such notice given as aforesaid shall be deemed to be served or received at the time upon delivery (if delivered by hand) or upon actual receipt (if given by facsimile) or fifteen (15) clear days after posting (if the addressee is outside the country of posting).

13 MISCELLANEOUS

13.1 Any provision of this Agreement may be amended or waived, if, and only if such amendment or waiver is in writing and signed, in the case of an amendment by each party, or in this case of a waiver, by the Party against whom the waiver is to be effective.

13.2 No failure or delay by any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise of any other right, power of privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law.

13.3 Neither this agreement nor any provision hereof is intended to confer upon any person/s other than the Parties to this Agreement any rights or remedies hereunder.

13.4 SP shall execute and deliver such additional documents and perform such additional actions, as may be necessary, appropriate or reasonably


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requested to carry out or evidence the transactions contemplated hereby.

13.5 In case of any change in applicable laws in India that has an effect on the terms of this Agreement, the parties agree that the Agreement may be reviewed, and if deemed necessary by the Parties, renegotiated in good faith.

13.6 The captions herein are included for convenience of reference only and shall be ignored in the construction or interpretation thereof.

13.7 If this Agreement is signed in counterparts, each counterpart shall be deemed to be an original.

13.8 SP shall not assign or transfer all or any of its rights, benefits or obligations under this Agreement without the approval of Bank. Bank may, at any time, assign or transfer all or any of its rights, benefits and obligations under this Agreement.

13.9 SP agrees that they shall not use the logo, trademark, copy rights of other proprietary rights of the bank in any advertisement or publicity materials or any other written communication with any other party, without the prior written consent of the Bank.

13.10 This Agreement shall not be construed as joint venture. Each party shall be responsible for all its obligations towards its respective employees. No employee of any of the two parties shall claim to be employee of other party.

13.11 SP agrees that in carrying out the outsourcing activities for the bank, they are only an independent contractor and shall control and direct the performance of their staffs, officers, agents, representatives, BCA etc deployed bythem subject to the rights of the bank specified herein. Nothing in this agreement shall imply a relationship of employment between the bank and the BC, their staffs, officers, agents, representatives, BCA etc.

13.12 SP shall preserve documents and data in accordance with the legal/regulatory obligations of the bank.

13.13 SP shall regularly assess the service provided by them/BCA and notify the bank on finding if any that may affect the performance of SP and Bank. Further any change in the BCAs due to termination or any other reasons shall be communicated by SP to the Bank immediately.


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13.14 The Schedules, Appendix/Annexure mentioned in this agreement shall form part of agreement and shall be enforceable like other parts of the agreement.

13.15 If any part, or provision of this Agreement not being of a fundamental in nature, is held illegal or unenforceable, the validity or enforceability of the remainder of the Agreement shall not be affected, if such part, term or provision of the Agreement is severable from the rest of the Agreement without altering the essence of the Agreement. If such part, term or provision is not severable, then the whole of the Agreement shall stand terminated, unless the parties thereupon negotiate in good faith in order to agree to the terms of a mutually satisfactory provision, achieving as nearly as possible the same effect, to be substituted for the provision so found to be invalid, illegal or unenforceable.

13.16 The Bank shall have the right for renegotiation regarding any service provided by the SP or any clause or whole of the Agreement and to intervenewith appropriate measures to meet its legal and regulatory obligations.

13.17 The terms and conditions set forth herein can be modified by mutual consent of the parties in writing.

13.18 The SP or BCA should not hire any of the existing/ex/retired employee of the Bank during the contract period or after the closure/ termination of the contract even on their seeking employment, and such employment if any shall be governed by the policies of the Bank.

14 FORCE MAJEURE

14.1 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 industries, 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 party shall notify the other in writing of such circumstances or the cause thereof immediately within


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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.

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


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SCHEDULE `A’ Details of specific Services & Products to be rendered by BCA

As per Annexure-I of the RFP

SCHEDULE `B’

Number of Habitations under Sub-Service Area and Wards under Urban

Clusters to be covered by the Service Provider

As per Annexure-X of the RFP

SCHEDULE `C’

ELIGIBLE ENTITIES AND GENERAL GUIDELINES

As per Annexure- V of the RFP

SCHEDULE 'D'

TECHNOLOGY SERVICES

As per Annexure-Iand Annexure-II of the RFP

SCHEDULE `E’

FEE PAYABLE TO SERVICE PROVIDER

A. FIXED CHARGES (As per Annexure-III)

B. VARIABLE CHARGES (As per Annexure - IV)


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SCHEDULE `F’

Address for communication to be stated under Schedule ‘F’

The General Manager <Name of the Service Provider> Karnataka VikasGrameena _______________________ HeadOffice, FI Divn, _______________________ Belagavi Road._______________________ DHARWAD-580008 _______________________

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement

the day and year first hereinabove written.

For Karnataka VikasGrameenaBank For<Name of the Service Provider>

Witness Witness

1. 2.


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ANNEXURE-XV

RULES FOR REVERSE AUCTION

Sl.No. Particulars Details

1.

Buyer Name

Karnataka VikasGrameena Bank

Head Office, FI Division

Belagavi Road

DHARWAD – 580008

2.

Auction to be conducted

by Service Provider

3.

Website address for

Online Sealed Bid/

Reverse Auction

Date of Auction

www.kvgbank.com

Auction Date : Will be Intimated

Online Initial Sealed Bid Time:

Online Reverse Auction Time:

(With extension as applicable)


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4.

Documents attached

Rules and Terms & Conditions of Reverse Auction :

Compliance Statement (Annexure K-1)

Price Bid Confirmation (Annexure K-2)

Online Sealed Bid:

Bank desires to make use of e-procurement process for selection of TSP cum Corporate

BC.

Online sealed bid is to be conducted from the technically responsive bidders to get the

indicative price to the Bank during the online sealed as per price schedule of RFP.

Participating bidders should have a valid digital certificate to participate in online sealed bid.

Basing on the indicative commercial quotes submitted by technically responsive

biddersandalso market enquiries; start price will be fixed for conducting the Reverse Auction.

Decrementalvalue and its multiples are also fixed and communicated.

Online Reverse Auction

Reverse Auction event will be carried out among the Technically Responsive

Bidders, for providing opportunity to the Bidders to quote the price dynamically for the

procurement for which RFP is floated and also to get the most competitive price.

PROCESS OF REVERSE AUCTION :

a) Bank had engaged the services of Service Provider through RFP process for

conducting Online Reverse Auction on behalf of the Bank.

b) The Bank had issued a Purchase Order on the Service Provider, clearly detailing the

roles and responsibilities of the Service Provider who hosts the web portal and

conducts the online sealed Bid and Reverse Auction.

c) For the proposed reverse auction, technically responsive bidders having a valid digital

certificate alone shall be eligible to participate.

d) Details like event date and time, start price, bid decrement, extensions etc., will be

communicated to the participating Bidder.

e) For creating necessary obligations and rights, the Service Provider will also enter into

an agreement with each eligible Bidder for this purpose, if required.

f) The Service Provider will provide all necessary training and assistance where

ever required before commencement of online bidding ( sealed bid/reverse auction)

on Internet. Service Provider/ auctioneer is responsible for conducting training to all

technically responsive bidders participating in the reverse auction and bidding process.

Bidder may contact the Service Provider in this regard for any clarifications.


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g) Wherever it is considered necessary and asked by the Bidders or as decided by the

service provider or by Bank, a mock auction may also be conducted for the benefit of all

concerned.

h) Each Bidder shall participate in the training/ mock reverse auction at his / their own cost.

i) Bidder / Authorised representatives of the Bidders named in the authorization letter

given by the Bidder shall be given with a unique user name, password by the Service

Provider / auctioneer. Each Bidder / Authorised representatives shall change the

password after receipt of initial password from Service Provider.

j) Reverse auction will be conducted on schedule date & time and the same shall be

communicated in advance.

k) Bidders have to submit the compliance form in the prescribed format, if any, provided by

Service Provider before start of Reverse auction. Without this the Bidder will not be

eligible to participate in the event.

l) Bidder is required to give their indicative price to the Bank during the online sealed bid, if

required by the Bank. Timings of the online sealed bid will be intimated by the Bank in

advance.

m) Start price and decremented value for conducting the Reverse Auction will be notified

by the Bank.

n) All the bids made from the login ID given to Bidder will be deemed to have been made

by the Bidder to whom the login ID and password were assigned by the Service Provider

/ auctioneer.

o) Any bid once made through registered Login ID & password by the Bidder cannot be

cancelled. The Bidder, in other words, is bound to supply the items as per the RFP/ for

which reverse auction was conducted at the bid price offered during the Reverse

Auction.

p) Every successive bid by the Bidder being decremental bidding shall replace the earlier

bid automatically and the final bid as per the time and login ID shall prevail over the

earlier bids.

q) The Bank shall conduct the reverse auction as per the Standard English reverse auction,

that is, no two bids can have identical price from two different Bidders. In other words,

there shall never be a “Tie” in bids.

r) The time limit for online Reverse Auction is half an hour to two hours excluding further

extensions. Bank can fix 5 to 10 further extensions at 10 minutes each depending upon

the size of the project.

s) Reverse auction may be conducted either on entire line items as per the price schedule

of RFP or on single total evaluated cost. At the end of reverse auction event, the lowest

Bidder value will be known on the network and have to submit the detailed price

schedule as per RFP.

t) The lowest Bidder has to fax the duly signed filled-in prescribed format along with break-


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up as provided on case-to-case basis to the Bank within 24 hours of auction

without fail.

u) Any variation between the online Bid value and the signed document will be liable for

rejection of the Bid, forfeiture of the Bid Security etc., and the Bidder may be disqualified

to conduct business with the Bank in future.

v) The reverse auction will be treated as closed only when the bidding process gets closed in all respects for the item listed in the tender.

w) The Service Provider at the end of each Reverse Auction shall provide the Bank with all details of the bids and reports of Reverse Auction.

x) Bank's decision on award of Contract shall be final and binding on all the Bidders.

Rules and Terms & Conditions of Reverse Auction

Online Reverse Auctions are carried out under the framework of a set of business

rules. Following are the „Rules and Terms & Conditions‟ of Online Reverse Auction.

1. Definition :

“Bank” means KanratakaVikasGrameena Bank

“Service Provider” means the third party agency / company who have been selected by the Bank for conducting online sealed bid/Reverse Auction through RFP process.

“Bidder” means the party or his authorised representative who has participated in the RFP / Tender Process, Technically qualified, having valid Digital Certificate, and willing to comply with all the instructions and terms and conditions of RFP.

“L1” means Bidder who is quotes lowest during the online reverse auction.

2. Eligibility of Bidders to participate in Online sealed bid/Reverse Auction:

2.1. Bidders who are technically responsive in terms of the relative Terms & Conditions

(Eligibility criteria/Technical specifications) of the RFP and accept the Business

Rules of Reversion Auction and submit the undertaking as per the prescribed

format in ANNEXURE-K-1 can only participate in Reverse Auction related to the

procurement for which RFP is floated.

2.2. Bidders not submitting the above undertaking or submitting the same with deviations /

amendments thereto will be disqualified from further evaluation / participation in the

process of relevant procurement.

2.3. Bidders should ensure that they have valid digital certificate well in advance to

participate in the Reverse Auction. Bank and / or Service Provider will not be

responsible in case Bidder could not participate in Reverse Auction due to non

availability of valid Digital Certificate.


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2.4. Bidders participating in Reverse Auction shall submit the following duly signed by

the same Competent Authority who signs the offer documents in response to the

RFP floated by Bank.

2.4.1. Undertaking letter for acceptance of Rules for Online Reverse Auction and Letter

of Authority authorizing the name/s of official/s to take part in Reverse Auction

as per the format Annexure K-1 (Compliance Statement)

2.4.2. Agreement between Service Provider and Bidder, if any. This format will be

given by the service provider prior to announcement of Reverse Auction.

3. Training:

3.1. The Service Provider shall impart training on the Reverse Auction to representatives

of all technically responsive bidders as provided by CO:DIT for participation in

Reverse Auction.

3.2. All rules & procedure related to Reverse Auction will be explained during the training.

3.3. The Bank/Service Provider may also conduct a “Mock Reverse Auction” to familiarise

the Bidder/s with Reverse Auction process.

3.4. Date, Time, Venue etc of training will be advised at appropriate time by the service

provider.

3.5. Technically responsive bidder / his authorized representative have to attend the

training, if required to the participating bidders, as per the schedule and at the

specified venue at his / Bidder‟s own cost.

3.6. No request from the Bidders for change in training schedule and/or venue will be

entertained.

3.7. However, Bank reserves the right to postpone / change / cancel the training schedule

for whatsoever reasons without assigning any reasons there for, even after its

communication to eligible Bidders.

3.8. Any Bidder not participating in the training process, will do so at his own risk and it

shall not be open for him to make any complaint / grievance later.

4. Reverse Auction Schedule:

4.1. The date & time of commencement of Reverse Auction and its duration of time shall

be communicated to the eligible and technically responsive Bidders at least one or two

days prior to the Reverse Auction Date.

4.2. Bank reserves the right to postpone / change / cancel the Reverse Auction event even

after its communication to Bidders without assigning any reasons there for.

4.3. Reverse Auction initial period will normally be for one hour.


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i. If further extensions are there after the initial reverse auction period and If a Bidder places a bid price in last 10 minutes of closing of the Reverse auction, the auction period shall get extended automatically for another 10 minutes. In case there is no bid price in the last 10 minutes of closing of Reverse Auction, the auction shall get closed automatically without any extension.

ii. If further extensions are not there, auction shall get closedautomatically within the specified initial period.

4.4. The initial time period of Reverse Auction and Maximum number of its extensions

and its time, decremental value and details of multiples of decremental value are

subject to change and will be advised to technically responsive bidders before the

start of the Reverse Auction event.

4.5. During English Reverse (no ties) Auction, if no bid is received within the specified time,

the Bank, at its discretion, may decide to revise Start price OR scrap the reverse

auction process OR proceed with conventional mode of tendering.

5. Bidding Currency:

Bidding will be conducted in Indian Rupees (INR).

6. Price Schedule: The Bidder, during the „Reverse-auction‟, shall quote the Hardware

Prices as per the following format


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Price Schedule forselection of Technical Service Provider cum Corporate

Business Correspondent

(Amount in Rs.)

Indicative Commercial quote format

Sl.

no

Nature of

activity

Range BCA

charges

Service

provider

charges

Quantity for

evaluation

purpose

Total (Rs)

A B C D (A+B)*C

1 Financial

transactions

51 to 100

transactions

(No. of locations) X

60 (months)

2 Financial

transactions

>100

transactions

(No. of

transactions)X (No

of locations) *

60(months)

GRAND TOTAL xxxxxx

Notes:

a. If no price is quoted for any line item, it will be assumed that the bidder will supply those item at free of cost.

b. The Commercial offer shall be on a fixed price basis. c. The above quotes are exclusive of taxes. d. GST at actual, is payable extra. However both service tax & VAT will not be paid on

any item or component. e. The quantity mentioned in the RFP is indicative and the Bank reserves the right to

vary the quantity as per requirement f. L1 bidder has to submit detailed breakup of the quotes as per price schedule, in

addition to Annexure-K-2. g. All applicable taxes are payable extra at actual on submission of proof. h. The final quotes during reverse auction should be valid for 5 (Five) years from the

date of acceptance of purchase order by the L1 Bidder. i. All the technically responsive bidders should participate and quote for all items

including optional items during the Online Sealed Bid. j. Bank may conduct Reverse Auction for the Total Cost of ownership (TCO).

7.Start Price:

7.1 Bidder needs to give their indicative price to the Bank during the ONLINE SEALEDBID.

Timings of the online sealed bid will be intimated by the Bank in advance.

7.2 Bank shall determine the Start Price for Reverse Auction

a. On its own and / or


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b. Bank may determine the start price on the basis of the lowest quote of indicative commercial bids received during ONLINE SEALED BID, or

c. on the basis of market enquiries about the rates at that time

7.3. Bank may conduct the Reverse Auction on a single amount i.e., grand totals of all

items including AMC as per price schedule of RFP. The Lowest Evaluated bidder

has to submit the detailed price schedule as per RFP.

8. Decremental Bid Value:

8.1. The bid decrement value and whether decremental value is in multiples- Yes or

No option, will be specified by Bank before the start of Reverse Auction event.

It can be a fixed amount or percentage of Start Price as per Banks requirement.

8.2. Bidder is required to quote their bid price only at a specified decremented

value.

8.3. Bidder need not quote bid price at immediate next available lower level, but it

can be even at 2 / 3 / 4 ….level of next available lower level.

8.4. Bid decrement value shall be rounded off to nearest 100s or 1000s etc

9. Web Portal and Access:

9.1. Reverse Auction will be conducted on a specific web portal meant for this purpose

with the help of the Service Provider identified by the Bank.

9.2.Service Provider will make all necessary arrangement for fair and transparent

conduct of Reverse Auction like hosting the web portal, imparting training to

eligible Bidders etc., and finally conduct of Reverse Auction.

9.3. Bidders will be participating in Reverse Auction event from their own office / place

of their choice. Internet connectivity and other paraphernalia requirements shall

have to be ensured by Bidder themselves.

9.4.In the event of failure of Systems/Connectivity at the Bidders end (due to any reason

whatsoever it may be)

9.4.1. It is the Bidders responsibility/ decision to send fax communication

immediately to Service Provider furnishing the bid price, they want to bid

online, with a request to upload the faxed bid price online so that the service

provider will upload that price online on behalf of the Bidder.

9.4.2. It shall be noted clearly that the concerned Bidder communicating this price to

Service Provider has to solely ensure that the fax message is received by

Service Provider in a readable / legible form and also the Bidder should

simultaneously check up with Service Provider over phone about the clear

receipt of the bid price faxed.

9.4.3. It shall also be clearly understood that the Bidder shall be at liberty to send

such fax communications of prices to be uploaded by Service Provider only


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before the closure of Reverse Auction time and under no

circumstances it shall be allowed beyond the closure of Reverse Auction

event time.

9.4.4. Such Bidders have to ensure that the Service Provider is given reasonable

time by the Bidders, to upload such faxed bid prices online and if such

required time is not available at the disposal of Service Provider at the time

of receipt of the fax message from the Bidders, Service Provider will not be

uploading the bid prices. It is to be noted that neither the Bank nor the Service

Provider will be responsible for these unforeseen circumstances.

9.5. In order to ward-off such contingent situation

9.5.1. Bidders are advised to make all the necessary arrangements / alternatives

such as back-up power supply, whatever required so that they are able to

circumvent such situation and still be able to participate in the reverse

auction successfully.

9.5.2. Bidders are requested not to wait till the last moment to

quote their bids to avoid any such complex situations.

9.5.3. Failure of power at the premises of Bidders during the Reverse auction

cannot be the cause for not participating in the reverse auction.

9.5.4. On account of this the time for the auction cannot be extended and BANK

is not responsible for such eventualities.

9.5.5. Bank and / or Service Provider will not have any liability to Bidders for any

interruption or delay in access to web portal site of Reverse Auction

Irrespective of the cause.

9.6. For making the process of Reverse Auction and its result legally binding on the

participating Bidders, Service Provider will enter into an agreement with each Bidder,

before the start of Reverse Auction event. Without this Bidder will not be eligible to

participate in the event.

9.7. Neither Bank nor Service Provider / auctioneer can be held responsible for

consequential damages such as no power supply, system problem, internet problem,

inability to use the system, loss of electronic information, power interruptions, UPS

failure, etc. (Bank will not entertain any correspondence in this regard). Bidder

should make alternate arrangements in place of such eventualities.

TRANSPARENCY IN BIDS:

All participating bidders will be able to view during the auction time the current lowest

price in portal. Bidder shall be able to view not only the lowest bid but also the last bid

made by them at any point of time during the auction time.

11. MASKING OF NAMES:

11.1. Bidder will be able to view the following on their screen along with the


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necessary fields in Reverse Auction :

i) Start (Opening) Price

ii)Leading / Lowest Bid Price in Auction (only total price)

iii) Last Bid Price placed by the respective Bidder.

11.2. Names of Bidder/s shall be anonymously masked in the Reverse Auction

process and Bidders will be given suitable dummy names.

11.3. After completion of Reverse Auction, the Service Provider/auctioneer shall submit

a report to the Bank with all details of bid and the original names of all the

participating bidders with his / their original names.

12. Finalization of the Successful Bidder:

12.1. At the end of Reverse Auction event Service Provider will provide all necessary details of the bid prices and reports of Reverse Auction to the Bank.

12.2. Upon receipt of above information from Service Provider, Bank will evaluate the same and will declare the L1, L2, L3 and L4 Bidder, if there is no further techno-commercial evaluation. Bank‟s decision on award of Contract shall be final and binding on all the Bidders.

12.3. L1 Bidder or all bidders ( in case of further techno-commercial evaluation) have to fax the duly signed filled-in prescribed format (ANNEXURE-K-2) as provided to Bank within 24 hours of Reverse Auction without fail. The Original signed ANNEXURE-K-2 should reach the Bank within 48 hours of Reverse Auction without fail along with detailed price schedule as per RFP.

12.4. Any variation between the on-line Reverse Auction bid price and signed document will be considered as sabotaging the tender process and will invite disqualification of Bidder/vender to conduct business with Bank as per prevailing procedure.

12.5. Successful Bidder is bound to supply at their final bid price of Reverse Auction. In case of back out or fail to supply as per the rates quoted, Bank will take appropriate action against such Bidder and / or forfeit the Bid Security amount, debar him from participating in future

12.6. In case Bank decides not to go for Reverse Auction related to the procurement for which RFP is floated, Bank has discretion to call for sealed Commercial Bids from all the Technically responsive Bidders and the commercial bids shall be opened as per Bank‟s standard practice.

13. Bidder’s Obligation:

13.1. Bidder shall not involve himself or any of his representatives in Price

manipulation of any kind directly or indirectly with other suppliers / Bidders at

any point of time. If any such practice comes to the notice, Bank shall disqualify

the Bidder / bidders concerned from the reverse auction process.

13.2. Bidder shall not divulge either his Bid details or any other details of Bank to any


Page 114 of 118

other party without written permission from the Bank.

14. Change in Rules and Terms & Conditions of Reverse Auction:

14.1. Any change in the Rules as may become emergent and based on the experience

gained shall be made only by a Committee consisting of Senior

Executives of Bank.

14.2. Bank reserves the right to modify / withdraw any of the Rules and Terms &

conditions of Reverse Auction at any point of time.

14.3. Modifications of Rules and Terms & conditions of Reverse Auction will be

made available on website immediately.

14.4. Modifications made during the running of Reverse Auction event will be

informed to participating Bidders immediately.

15. Errors and Omissions

On any issue or area of material concern respecting Reverse Auction not

specifically dealt with in these Rules, the decision of the bank shall be final and

binding on all concerned.

ANNEXURE - K – 1


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COMPLIANCE STATEMENT FOR REVERSE AUCTION

(To be submitted in Company‟s letterhead by all the Bidders participating in Reverse Auction)

To Date:

The General Manager


Head Office: Financial Inclusion Division

Belagavi Road

DHARWAD – 580 008

DECLARATION

1. We _____________________(name of the company) hereby confirm having submitted our bid for participating in Bank‟s RFP Ref. No. _________dated _________ for __________.

2. We also confirm having read and understood the terms of RFP as well as the Rules

relating to the Reverse Auction for this RFP process.

3. We hereby undertake and agree to abide by all the terms and conditions stipulated by

Karnataka VikasGrameenaBank in the RFP document including the Rules for Reverse

Auction, all annexure, addendum, and corrigendum.

4. We shall participate in the on-line auction conducted by _______________ Ltd. (Service

Provider) and submit our Commercial bid. We shall agree to enter into an agreement

with the Service Provider for making the process of Reverse Auction and its results

legally binding on us.

5. Bank and Service Provider shall not be liable & responsible in any manner whatsoever

for our failure to access & bid in Reverse Auction due to loss of internet connectivity,

electricity failure, virus attack, problems with the PC, any other unforeseen

circumstances etc. before or during the auction event.

6. We understand that in the event we are not able to access the auction site, we may

authorize Service Provider to bid on our behalf by sending a fax containing our offer

price before the auction close time and no claim can be made by us on either Bank or

Service Provider regarding any loss etc. suffered by us due to acting upon our

authenticated fax instructions.

7. We do understand that Service Provider may bid on behalf of other Bidders as well in case of above mentioned exigencies.

8. We also confirm that we have a valid digital certificate issued by a valid Certifying Authority.

9. We shall fax the duly filled in signed Price Bid format as provided in the RFP to the

Bank and to the Service provider within 24 hours of end of online Reverse Auction

without fail.

10. We undertake to submit the Original confirmation of last bid price by us to the Bank as

well as to the Service provider within 48 working hours of the completion of event. We

also undertake to submit the Bill of Materials as per the Price Schedule of this RFP.


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11. We, hereby confirm that we will honour the Bids placed by us during the auction

process, failing which we shall forfeit the EMD. We also understand that the Bank may

debar us from participating in future tenders.

12. We undertake to supply at our final lowest bid price of Reverse Auction. In case of back

out or not supply as per the rates quoted by us, Bank is free to take appropriate action

against us and / or forfeit the Bid Security amount, debar us from participating in

future tenders.

13. We confirm having nominated Mr./Ms.________________, designated as ______________ of our company to participate in the Reverse Auction on behalf of the Company. His contact numbers Mobile: Tel: e-mail ID: and office address is as of the company address furnished here below.

14. We accordingly authorize Bank and / or the Service Provider to issue user ID and

password to the above named official of our Company.

15. Both Bank and the Service Provider shall contact the above named official for any and

all matters relating to the Reverse Auction showing any of the communication modes

mentioned in the item No. 13 above.

16. We undertake that the Company shall be bound by the bids made by the above named official of our Company in the Reverse Auction, failing which the Bank shall forfeit the EMD. We agree and understand that the Bank may debar us from participating in future tenders for any such failure on our part.

Signature of the Authorised Signatory with company seal

Name of the Authorised Signatory -

Company / Organization -

Designation within Company / Organization –

Address of Company / Organization –

Name of Authorised Representative: Mr. /Ms. ____________________

Designation of the Authorised Representative: ____________________

Signature of Authorised Representative: _________________________

Verified the above signature by:

Signature of the Authorised Signatory Company seal

Date: _________________

ANNEXURE - K – 2


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PRICE BID CONFIRMATION

(To be submitted in Company‟s letterhead by L1 Bidder

Participated in Reverse Auction along with detailed price schedule)

Date:

The General Manager


Head Office: Financial Inclusion Division,

Belagavi Road,

DHARWAD – 580 008

Dear Sir,

SUB: Final / Lowest Bid Price quoted in Reverse Auction held on _____________in respect of RFP Ref. No. _______________________Dated ______

We confirm that the final total bid price quoted by us in the captioned Reverse Auction event for captioned tender is as under –

Rs. (in figure): ___________________________

Rs. (in words): ___________________________

and also submitting the detailed price schedule with item wise details.

We confirm that:-

We enclose herewith the detailed break-up of above price as per Bill of Material OR We undertake to submit the Original duly signed detailed break-up of above bid price as per Bill of Material of the subject RFP within 48 hours from the end-of Reverse Auction event.

Any variation between the on-line Reverse Auction bid price quoted by us and this document will be considered as sabotaging the tender process and will invite disqualification of Bidder/vender to conduct business with Bank as per prevailing procedure. In such case Bank is free to take appropriate action and / or forfeit the Bid Security amount and / or debar him from participating in future.

We are bound to supply at the above final bid price of Reverse Auction.

We note that in case of back out or not supply as per the above rates quoted by us, Bank will take appropriate action against us and / or forfeit our Bid Security amount and / or debar him from participating in future.

Signature of the Authorised Signatory with company seal

Name of the Authorised Signatory –

Company / Organization –

Designation within Company / Organization –

Address of Company / Organization –

e-Mail id:


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Mobile: Tel. No:

Fax No:

CC: Service Provider

.

*****

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