PRATHAMA BANK HEAD OFFICE :: MORADABAD REQUEST FOR PROPOSAL FOR APPOINTMENT OF NEW SERVICE PROVIDER FOR BC SERVICES UNDER FINANCIAL INCLUSION (RFP Ref. No.PBHO/FID/RFP/ 273/2017 dated 01.06.2017) PRATHAMA BANK Head Office F I Department Prathama Bhavan, Ramganga Vihar, Phase-II Moradabad (UP) 244001 Telephone: 0591- 2455178, Fax: 0591-2455179 E-Mail: [email protected], [email protected] Bid RFP Ref. No. PBHO/FID/RFP/ 273/2017 Dated 01.06.2017 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 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 Page 2 of 127 Bid RFP Ref. No. PBHO/FID/RFP/ 273/2017 Dated 01.06.2017 37. ANNEXURES : ANNEXURE-I SCOPE OF SERVICES OFFERED 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-VI-(I)SPECIFICATIONS & FEATURES OF HHT (MICRO ATM) ANNEXURE-VII STATEMENT OF COMPLIANCE / DEVIATION ANNEXURE-VIII TECHNICAL EVALUATION ANNEXURE-IX STANDARD OPERATING PROCEDURES FOR BC/BCA/BANK MITRA ANNEXURE-X DETAILS OF BUSINESS CORRESPONDENT OUTLETS ANNEXURE-XI OFFER COVERING LETTER ANNEXURE-XII UNDERTAKING LETTER ANNEXURE-XIII FORMAT OF BANK GUARANTEE / BID SECURITY ANNEXURE-XIV SERVICE LEVEL AGREEMENT ANNEXURE-XV RULES FOR REVERSE AUCTION ANNEXURE-K-1 COMPLIANCE STATEMENT FOR REVERSE AUCTION ANNEXURE-K-2 PRICE BID CONFIRMATION Page 3 of 127 Bid RFP Ref. No. PBHO/FID/RFP/ 273/2017 Dated 01.06.2017 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, Prathama Bank, having its Head Office at Moradabad (UP), 244001 in India, hereinafter 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) Schemes will also form part of the current requirements. The project includes supply, commissioning, installation, up gradation, customization, integration, operations, services, maintenance and management of the entire implementation, including cash management, during the contract 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 548 in 4 districts (Moradabad, Rampur, Amroha & Sambhal) of Uttar Pradesh which may be increased / decreased at the sole discretion of the Bank. The eligibility criteria, the evaluation process and other terms and conditions are set out in this RFP. Bank will enter into contract with the selected Service Provider on such terms and conditions as contained in this RFP. The Service Provider will act on behalf of the Bank in respect of the specified services and will not be eligible to claim any benefit except for the fee or commission as may be agreed. The Service Provider shall not use the Page 4 of 127 Bid RFP Ref. No. PBHO/FID/RFP/ 273/2017 Dated 01.06.2017 trade mark, logo or any proprietary right of the Bank without their written consent. 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 Mitra /Business Correspondent Agent (BCA). Sub-Service Area (SSA) will be the unit for operation covering a village or group of contiguous 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 Prathama 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 Mitra /BCA” means Business Correspondent Agent appointed by BC operating in the 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 Mitra /BCA are mentioned in Annexure V. 2.7. “Technical Service 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 Page 5 of 127 Bid RFP Ref. No. PBHO/FID/RFP/ 273/2017 Dated 01.06.2017 ‘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). 2.9. “Customer Service Point (CSP) or Business Correspondent Outlet (BCO)” are the terms used interchangeably and mean the outlet of the Service Provider which will be providing Banking and financial services. 2.10. “Bank Mitra” 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, 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 using relevant 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 Page 6 of 127 Bid RFP Ref. No. PBHO/FID/RFP/ 273/2017 Dated 01.06.2017 that are required for carrying out transactions both in Online/Offline manner. 2.16. “FI Server or Intermediary Server” means TSP server with essential hardware and 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. 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’ titled ‘B@ncsLink’ 2.21. “RFP” means this Request for Proposal bearing Bid Reference No. (Ref.No.PBHO/FID/ 273/2017 dated 01.06.2017) 2.22. “UIDAI” means Unique Identification Authority of India 2.23. Words “Service Provider” and “Bidder” used in this RFP carry the same meaning. 3. REQUEST FOR PROPOSAL (RFP) 3.1 This Request for Proposal is being issued by Prathama Bank 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 in the operational area of bank i.e. providing end to end solution for FI implementation by Bank. The period may be further extended by another three 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. Page 7 of 127 Bid RFP Ref. No. PBHO/FID/RFP/ 273/2017 Dated 01.06.2017 3.2 The time schedule for various activities is listed below: Particulars Details Last date to seek clarifications on the RFP June 19, 2017 Last date & time for receipt of response June 22, 2017 (04.00 pm) to this RFP together with To be submitted at Prathama a) Bank Guarantee of Rs.10,00,000/- Bank, F I Department, Prathama Bhavan, (Rupees Ten Lacs Only) favoring Ramganga Vihar, Phase-II Prathama Bank, as per the format in Moradabad (UP) 244001 the RFP, as Bid Security (returnable Telephone: 0591- 2455178, only to non-successful Bidders) Fax: 0591-2455179 b) Rs. 10,000/- (Rupees Ten Thousand only as Cost of the Bid (non- refundable) drawn in favor of Prathama Bank and payable at Moradabad. Date and time of opening the technical June 22, 2017 (05.00 pm) To be submitted at bids Prathama Bank,F I Department Prathama Bhavan, Ramganga Vihar, Phase-II Moradabad (UP) 244001 Telephone: 0591- 2455178, Fax: 0591-2455179 E-bidding to be facilitated by M/s e-Procurement Technologies Ltd,(ETL), Ahmedabad Address for online submission of bids https://eauction.auct iontiger.net/EPROC/ Contact Details of M/s e-Procurement Samjad Khan- 07940230817 Technologies Ltd,(ETL), Ahmedabad [email protected] Date and time of online reverse Auction Will be intimated to Page 8 of 127 Bid RFP Ref. No. PBHO/FID/RFP/ 273/2017 Dated 01.06.2017 Particulars Details for commercial finalization only technically qualified bidders Date and time of reverse auction Will be advised to technically qualified bidders later. Bidders may arrange to obtain Digital Signatures to participate in the reverse auction Address for communication General Manager, To be submitted at Prathama Bank, F I Department Prathama Bhawan, Ramganga Vihar, Phase-II Moradabad (UP) 244001 Telephone: 0591- 2455178, Fax: 0591-2455179 mail: [email protected], [email protected] Important Note All the prospective Bidders and the stake holders are requested to visit Bank’s website at www.prathamabank.org under ‘Announcement/ Tenders’ for updates / amendments, if any, 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. Submission of Proposal: The response to this RFP will be submitted by way of two stage bidding process. The technical proposal with the relevant information/documents/acceptance of all terms and conditions as described in this RFP document will be submitted online through M/s e- Procurement Technologies Ltd,(ETL), Ahmedabad, the outsourcing agency Page 9 of 127 Bid RFP Ref. No. PBHO/FID/RFP/ 273/2017 Dated 01.06.2017 approved by Prathama Bank for e-bidding on the website (https://eauction.auctiontiger.net/EPROC/). 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. Page 10 of 127