Request for Proposal (Bank’S Tender No._____ Hereinafter Referred to As “RFP”) Issued by CANARA BANK (“Bank”) We Hereby Covenant, Warrant and Confirm As Follows
Appendix I
Number of Locations Cluster wise to be covered by the Business Correspondent in India.
Cluster Location falling under all the districts of following States No of habitations/v illages/wards A Karnataka, Goa, Kerala Tamilnadu and Pondicherry 1900 B Maharashtra, Gujarat, Dadra & Nagarhaveli, Rajasthan, Delhi, 800 Uttar Pradesh, Uttarakhand, Punjab, Himachal Pradesh, Jammu & Kashmir, Madhya Pradesh, Chhattisgarh, Haryana C Andhra Pradesh, Orissa, Jharkhand, Bihar, West Bengal, Assam 900 and North eastern States
Appendix II
TECHNOLOGY SERVICES
a. The Technology will include providing and maintaining devices like laptop computers, hand-held devices, mobile phones, etc. b. Devices should have capability to connect directly to intermediate server and process through Bank’s gateway in the banking mandated standard ISO format. c. For customer enrollment, including biometric capturing, devices must support ISO templates generation and verifications as per standards mentioned at technical specification. d. Devices must have capability for making transactions, using Bank’s central biometric authentication/any other central authentication system, through switch of National Payment Corporation of India (NPCI) or any other agency approved by the Bank.
A. TECHNICAL CAPABILITIES
Conform to open standards. Specified by IDRBT/IBA/NPCI Provide multichannel support (Biometric POS, Internet operated devices, Mobile, laptop etc.). Have standard interface capabilities (standards like ISO, XML, web services). Multiple backend systems interfacing capabilities. Be on open architecture i.e. multiple OS and hardware supported, i.e. Windows/ Linux/Unix; Database Oracle/My SQL Be capable of supporting transactions in ‘on line’ mode with CBS system of the Bank. Should support EMV standards Have necessary software, with common Key Management System(KMS) to support minimum banking products/services mentioned in the RFP. The front end devices should support magnetic stripe/plastic card/smart card/mobile pin and non card operations with central biometric authentication. The SP shall arrange for procuring, Printing, Supply, personalization, delivery and activation of Smart Cards or any other identity card as per the requirement of the bank to the customer if required. The Service Provider shall also provide direct connectivity between the PoS device and intermediate Server
B. SOLUTION SHOULD PROVIDE FACILITY OF
Business Correspondent /Agent Maintenance Biometric authentication for agent and customer Audit trail of all administrative/ transactional activities POS/ other terminal authentication Role based access - Service level restriction for agents Centralized financial parameters (or limits) maintenance. Centralized non-financial parameters maintenance. BCA limit management should be parameterized Online transaction posting Voice acknowledgement in various vernacular languages for the customer. Capability to levy variable /fixed , different types charges on the customer transactions on the basis of customer type, transaction type, geographies, general or restricted manner, various plans of charges. Log of all transactions. Secure Sockets Layer (SSL) mode of communication. Report of all transactions processed during the day (filtered by BC, user and date). Scalability. Holding the entire customer profile, user profile, access rights, authentication methods, rules etc. Centralized application management Customized MIS as per bank’s requirement Printing of receipt in the local language
C. TECHNICAL SPECIFICATIONS: The technology should be compatible with Standards on Micro ATM/biometric standard version 1.5 and support inter-bank interoperability through NPCI switch. The Indian Bank’s Association (IBA) and Institute for Development and Research in Banking Technology (IDRBT) have come up with ‘Open Standards for Smart Card Based Solutions for Financial Inclusion’ (hereinafter called ‘The Standards’). The version 1.2 of ‘The Standards’ are to be adhered to. Technology should also meet standards defined by NPCI/ IBA/IDRBT any other agency acceptable to the Bank, for interoperable transactions between the Banks based on Bank level authentication. The Service Provider should upgrade the technology, at its own cost, to meet the standards as may be set by IBA/ IDRBT/NPCI/RBI in future. The scope of services may be expanded by the bank at mutually agreed terms and conditions. Bank shall have its own FI gateway and the service provider shall have to integrate their devices with intermediary server / middleware in such a way that the authentications / transactions emanating from the front end devices directly hit the server provider’s intermediary server / middleware on real time basis. Further the transactions/authentications integrate with CBS of the Bank seamlessly through FI gateway. In case a Bank has a technology solution, service provider / agents may use the same for delivery of service using front end devices as per technology solution. Bank and service provider will have to enter a separate agreement for use of the technology and fee for technology payable by service provider to the Bank will be decided with mutual consent. Devices should be able to use application software provided by the Bank or service providers own applications meeting all standards as mentioned in the document. Front end Devices will be supplied and maintained by the service providers at their cost. The proposed solution will support authentication of customers, secured communication, transaction processing, authentication of transactions through fingerprint matching, customer enrolment system, uploading/downloading of transactions/ customer enrolment data through online mode, generation of printed acknowledgement for completed transactions, generation of Audit trail including failed transaction. The solution shall provide for simple queries and various types of MIS report. The technological details indicated in the RFP are suggestive. The architecture should meet latest industry standards and best practices that minimize costs and risks to the Bank. Any alternate technologies based on open standards with equivalent/better security functionality and other features will also be considered for evaluation based on relative merits and their ability to meet the regulatory, legal and bank’s business & strategic requirements. The Bidder should be in a position to implement a proven technology and should be able to roll out the systems at short notice. The system should be scalable and interoperable and work with different types of handheld devices and Contact / Contactless smart cards provided by different Bidders.
D. TECHNOLOGY SERVICE LEVEL REQUIREMENTS
This section applies to the “Technology Based Financial Services” to be rendered by the Service Provider to the Bank comprising the following – The BCs may use Biometric PoS/ Mobile / Internet /Laptop based etc on the technology channel opted by them in view of type of level / type of connectivity available in the area of operation of the BC / BCA. Biometric POS device in combination with Smart / Plain Plastic Card Internet operated device, printer and FP capturing machine. Mobile device with biometric identification. Kiosk model
SP shall make available a set of equipment for carrying out transactions at the PoS/ mobile/internet/laptop with biometric enabled device by the BCA at the discrection/direction of the Bank. It would be the responsibility of SP to keep the equipment in working order ensuring an overall uptime of 98% on a quarterly basis (Taking into consideration the uptime of all equipment in the field) and an uptime of 95% on a quarterly basis for individual sets of equipment in the field. To attain this uptime, SP would store adequate number of spares at convenient Nodal Points and arrange to replace and make operational the set within 24 working hours from the time of reporting depending upon the distance of the BCO location from the Nodal Point. BC should arrange refresher course to BCAs for one day for every three/six months to update them to discharge their duties more effectively.
E. INCIDENT MANAGEMENT SP shall provide a help desk with adequate numbers of phone lines for incident management. On finding an equipment to be not functioning, the BCA would advise on the pre-designated number of help desk regarding the same. SP Help Desk representative would then issue a ticket number to the BCA which he will quote in all subsequent communications till resolution of the issue. The defective part of the equipment would be replaced by a representative of the SP under a sign off from the equipment operator. As a part of facility management the bidder shall provide two technically competent resources at the Head Office of the Bank at their cost, who shall be available for attending any updates/modifications in concurrence with the bank, apart from trouble shooting.
F. MAINTENANCE AND SUPPORT
At the time of operationalising the PoS/ technology channel, training is to be provided to the BCAs clearly delineating the Do's and Don’ts and Best Practices for maintaining the equipment. It would be the responsibility of the SP to ensure that the equipment is handled carefully. However, SP would provide active Help Desk facilities for reporting of all such field incidents. For the passive hours there would be a facility to log the call on an IVR. However, the time for turnaround would be counted from the time the Help Desk becomes active next time.
G. SOFTWARE MANAGEMENT In order to provide more and better service, the Bank may require an upgrade in the software. However, all newer versions of software for the frontend device should be released with the prior permission of the Bank. These releases would be informed to the Headquarters of the SP through release notes for further dissemination to the BCAs. The BC shall prepare, in consultation with the Bank, a schedule for upgrade on the field and the BC should download and install the new version at each BCO. BC helpdesk would be available to assist in the scheduled implementation and overseeing of the upgrade.
The BC shall maintain sufficient inventory of Consumables at each district headquarters in the State.
H. CENTRALIZED MONITORING
BC shall have a dedicated team of Supervisors and Coordinators who shall monitor the implementation of FI Plan effectively well within the time schedule. They shall also arrange for necessary training, meetings with BCAs at periodical intervals, liaise with Bank’s Link Branches/Circle Offices. They shall ensure for Preventive maintenance of HHMs, their good working condition, timely repairs if any and with the required consumables. They shall also monitor the uptime, problem resolution. BC shall have the supervisors and coordinators as follows:
One supervisor referred to as BC Supervisor (BCS) for 20-25 BCAs. One Coordinator referred to as BC Coordinator (BCC) for20-25 BCSs.
I. TECHNOLOGY ARCHITECTURE FOR THE SOLUTION
The IT hardware, software, application, operating systems, security and networking systems that support the requirements of the project shall be preferably based on Open Systems Architecture and support interoperability, portability, scalability and Internet/Intranet and extranet capabilities. The technologies and the solution should support bank’s strategy, services and operational capacities to improve productivity and performance and customer service. The solution should comply with IT Act 2000, ISO 27001 security standards, architecture, guidelines & standards prescribed by Cert-In, RBI & IDRBT for SCOSTA, Internet Technologies, Financial Inclusion, Biometrics, Smartcard, Electronic-Commerce, etc The most effective and reliable technology architecture will be identified by the Bank that will support the strategy for all India roll out. Bidders are requested to indicate details of their software application with innovative business model and the distinct advantages of their solution.
J. INTER-OPERABILITY
Bidder shall provide an interoperable solution in support of this project. Bidder shall build suitable interfaces to service smartcard issued by other service providers where the smartcard and its architecture conforms to IDRBT’s guidelines. Bidder shall build necessary interfaces and extend banking/financial services as per bank’s policy.
K. DATA BACKUP & CONTINGENCY PLANNING
Bidder shall be responsible for data protection, complete data backup and other data safeguards including disaster recovery in respect of the project. It will be the responsibility of the Bidder to retain all records for future reference to meet internal, legal and regulatory requirements. The data to be retained includes information compiled/processed / stored on account of the transactions, account information, balances, charges and the information captured relating to the customers. Data Backups must be tested periodically for restoration,as per Bank’s IT policy. Bidder shall have system in place to handle disruptions in service to the customer and ensure quick remedial action. Bank would stipulate the archival policy for all critical data, programs, etc. Bidder shall have a robust Disaster Recovery and Business Continuity Management. Bidder will comply with the bank’s policy on data-backups, disaster recovery and business continuity plan. Bidder shall install the intermediate server at Banks’ DC/DRC locations.
L. TECHNOLOGY CONTROLS The operations and technology supporting this facility shall at all times conform to regulatory and legal provisions and the requirements of the bank. The Bidder should provide technological solution with a highly reliable and scalable architecture that conforms to international standards and best practices. ISO 19794 for Biometric, ISO 7816/ISO 14443 for smart card, ISO 8583 for transaction interface with backend systems should be adopted. Security of the individuals’ identity and transaction data must be maintained while the data is in use, in transit and in store, using at least 3DES or higher encryption standards. Raw Finger print image should be stored without compression as per ISO standards. The solution should be capable of detecting de-duplication of finger print images using of de-duplication technology. Delivery of other government and financial services (like utility payments, micro insurance etc) should be overlaid on this model to capitalize on technology investments. Enrollment process must be scalable to handle huge numbers. Data storage requirements should be adequately managed. Security audit should be carried out for the technology, process and people through a competent and mutually agreed third party. Bidder shall ensure that end-to-end solution is ISO 27001 certified and the certification is maintained throughout the tenure of the engagement. Bidder shall provide technologies with highly reliable functionalities to support encryption on the smart card, PoS terminal, transmission software, intermediary devices and servers and support secure communications between various devices/components. Authentication mechanisms should reliably verify individuals, devices and other systems interacting with each other and generate audit trails to support accountability and non-repudiation requirements of the bank. Strong authorization mechanisms should be provided to enforce principles of least privileges, restricting access, limiting amount of money that can be transacted, etc as required by the Bank. Integrity of all transactions should be secured from end-to-end. The solution supplied by the Bidder should provide timely tracking and reporting of events / violations to bank’s policies. Systems should be available to support uninterrupted services to the customers duly meeting the contractual obligations of the Bank towards third-parties and customers.
M. BASIC FUNCTIONS OF THE APPLICATION
The application software must support a minimum of the following basic functions.
Management of Account life-cyle for savings/term/recurring deposit schemes, demand/term loan schemes, cash credit/ overdraft / SHG schemes Cash deposits/receipts, cash withdrawals/payments including EBT payment, to service various deposit, credit, remittances and insurance schemes offered to customers under this project. Voice guidance in local language should be provided for transactions to enable the Customers to follow the transactions. Transfer transaction between two cards, between two accounts, between customer account and GL account, provision to collect commission, fees, remittances, charges etc Account closure module Record and maintain detailed audit trails of all types of transactions (financial or non-financial) duly preserving pre and post images of changes made to accounts, parameter files, etc. Generation of Control Reports for monitoring and control including reports on the Cash entitlement, cash drawn, cash paid, cash receipts, cash on hand at every service delivery point. Any other specifications required by the Bank.
N. INTERMEDIATE SERVER/ FI SERVER
Services of an Intermediate System consisting of the related hardware, software and required technical support will be provided by the Bidder. Maintenance and Operation of the System will be done by the Bidder or DC/DRC of Bank. The Intermediate software will have the capability of switching and connecting the front-end devices with the backend Banking Solution in a secure manner. It will also have following additional functionalities: Only Authorized or registered devices on ensuring the authentication of terminal ID, message as per standard format,decrypts the message successfully and connects to the Intermediate Server. Intermediate Server will push software upgrades, if any, to the handheld device during every BOD and ensure that all the handheld devices are having the latest version of the software Secure communication between all devices/systems end-to-end. Intermediate Server should be installed at the Bank premises. Ensure that all the upload done from the various handheld devices/Laptops are properly accounted in the system with various status flags and validations.
O. INTERFACE WITH CORE-BANKING SYSTEM OF THE BANK The Accounts of customers covered under Financial Inclusion would reside on Bank’s Core Banking System. The features and business rules specified in the Core Banking system should be extended to the Bidder’s solution. The Bidder shall develop and provide interfaces for the FI gateway so as to ensure backend system to interact with Core Banking System of the Bank. Audit trails should be stored for all transactions and should be accessible to the bank’s authorized personnel whenever needed. Audit trail should be able to track the transaction end-to-end.
P. SMART CARD SPECIFICATIONS
The Smartcard must conform to the latest version of Open Standards for Smartcard based Solutions for Financial Inclusion by IDRBT. The Indian Bank’s Association (IBA) and Institute for Development and Research in Banking Technology (IDRBT) have come up with ‘Open Standards for Smart Card Based Solutions for Financial Inclusion’ (hereinafter called ‘The Standards’). The version 1.2 of ‘The Standards’ are to be adhered to. Should conform to ISO 14443/ ISO 7816 standards for contactless/ Contact Smart cards and support read and write operations. The card should be of best quality PVC/polycarbonate material. Should be durable and should withstand flexing/abrasion/static electricity/humidity/magnetic field Should be of standard dimension Card operating system shall be compliant with SCOSTA-CL standard of Government of India The cards should be capable of supporting EMV standard/specifications in future. Key Length Supported (1024 to 2048) Symmetric Key Support ( DES / TripleDES Algorithm) Should have a minimum of 32 K EEPROM memory for customers and of 64 K EEPROM for Agents rendering banking/financial services Card will have the photo of the customer as per design approved by Bank. Application Area will contain personal demographic information, Fingerprint Templates of corresponding 10 fingers and photo, secure storage of information regarding multi accounts Should facilitate for linking for 10 accounts/products. The data relating to each account will have corresponding Account No., Opening balance, details of the last 10 transactions and Closing balance. Bank may require additional information to be stored on the Card. The personal information will have name, date of birth, date of issue, validity, residential address, Aadhaar number if available, instruction to return the card if found lost, etc. printed on it. Provision for Unique number as per IDBRT for card serial number. Should guarantee Card work life of a minimum of 5 years. The card should allow the reader to compare the fingerprint template stored on the card and the live finger print of the card holder read by the fingerprint reader. Should specify the breakup of the space allocated in the smart card for various requirements like User Certificates, Smart Card Operating system, Applications provided by the smart card Bidder, Customized application and future applications.
Q. BIOMETRIC/FINGER PRINT IMAGE ACQUISITION
The minimum requirements for image acquisition shall conform to RBI guidelines and currently should be the Setting Level 31 as defined in the ISO/IEC 19794-4 and is as under:
Setting Scan Scan Pixel Dynamic Certification Level resolution resolution Depth range pixels/ pixels/Inch (bits) (grey centimeter (ppi) levels) (ppcm) 31 197 500 8 200 EFTS/F The fingerprint image acquisition shall conform to requirements and certifications proposed by IDRBT or UID. Bidder would be required to meet the said specifications as and when timelines set by UID or IDRBT. Minutia record format shall conform to ISO/IEC 19794-2 standard. All 10 finger image data shall be captured and stored on server The images are preferably stored in uncompressed form as per RBI guidelines. Solution should be able to comply with IDRBT’s approved compression algorithms - WSQ or JPEG2000.
R. MINUTIAE The quality of finger-print and minutiae meets interoperability requirements and conforms to the latest version of Open Standards for Smartcard based Solutions for Financial Inclusion and also NPCI specs. Minimum number of minutiae for enrollment would be 30-35 and for verification 25-30. The same may be relaxed to 16 for enrollment and 12 for verification based on the strength of the function. Recommended maximum number of miniutiae for enrollment and verification is 60. Maximum number of minutiae to be sent to the card may depend on transmission time, memory resources, execution time and security aspects.Bidder shall indicate the minimum number of minutiae recommended for enrollment and the achievable maximum. The minutiae should be compatible with third-party Bidder’s algorithms.Bidder may indicate the list of compatible algorithms (with version), make/models of scanners and authenticity of compatibility (certification by reliable organisation, etc)
S. INTEGRATION WITH UID SCHEME System shall have provision to store the customers UID number on the card as well as the front-end device/ server’s database. Once UID is implemented, the system should be able to authenticate the cardholder using UID database in conformance to Bank’s specifications. Bidder shall indicate their consent and preparedness for the same. System/HHM shall be capable of performing AEPS as per NPCI stds.
T. FINGERPRINT SCANNER The Fingerprint Scanner to be deployed needs to have following minimum technical specifications – Scanner device should be capable of capturing and transmitting either minutiae or raw image as required. Each record shall pertain to a single subject and shall contain an image record (consisting of single view) for each of one or more fingers, multiple fingers (single image records). Scanner device needs to generate clear distortion free images using the advanced optical methods. Protection from strong ambience lights should be provisioned for this. Contact Area - 1x1 square inch. Minimum Capture Size – 13 mm wide x 17 mm high Pixel density of 500 ppi with ±5ppi. Pixel Depth – 8 bits Dynamic Range of Scanned image – minimum 200 grey levels prior to comparison. Minimum requirement for image acquisition should be the Setting Level 31, as defined in the ISO/IEC 19794-4 and Grayscale finger image data should be stored, recorded and transmitted in uncompressed – bit packed form. Scanner Surface should be dust and humidity resistant, in the form that the dust and humidity levels should not be damaging the scanner surface. Scanner device should be capable of sensing the Live-scan plain Finger impression. This would require the Scanner Device to have strong anti-spoofing features, whereby only live fingerprints will produce an image & also protect from use of residual images Scanner device should use precise and fast processing algorithm to ensure efficiency and reliability. Scanner device and algorithm used for developing minutiae shall be configured to address security requirements of the bank and protected from unauthorised changes Scanner device must encrypt the finger minutiae with 3DES or equivalent strong encryption algorithm before transmitting it over the network for authentication. Scanner Device should be ready to use with ease of integration and interoperability The Scanner Device must confirm to ANSI-378 standard to meet the Data Interchange requirements set by the standard. Scanner device must be resistant to impact and shocks. Scanner Device must be immune to Electronic Discharge. Scanner device should be protected from strong ambience light, temperature variations, humidity and similar environmental variables. Scanner device should have tamper resistant design, to avoid alterations to the physical device and/or connectivity modes with the various components to prevent relay or bypass attacks. Scanner device must have broader range of applicability, especially for use in extreme conditions and climates. Scanner device must be capable of generating audit logs and customizable reports of security events that should be reported to the central repository. Adequate security measures are desired to protect this data. Bidder should provide Scanner Device ID and record it in general record header.
U. HANDHELD DEVICES:
The device meets the latest version of Open Standards for Smartcard based Solutions for Financial Inclusion The device may be a single integrated system or could be in maximum of 2/3 components. All required devices should be freely (easily) available to carryout the activity on a large scale.
V. HANDHELD DEVICE SPECIFICATIONS
The technology should be compatible with Standards on Micro ATM/biometric standard version 1.5 and support inter-bank interoperability through NPCI switch. Should conform to ISO 14443/ ISO7816 and ISO 18092 standards for read and write operations. Should have built-in PKI support Multilingual support Should be capable of transactions through EMV standard cards in future. Should have online connectivity possible, and also have ability to transfer data using methods. All communications with the handheld devices should be by secured modes. Should be battery operated with several days in standby, and at least 8 hours of continuous operations Fingerprint system should be able to match the live fingerprint against templates stored on the customer card Application should be upgradeable in the field Agent based rule definition Capability of hand held device; the device should be capable of undertaking the following functions :- Reading fingerprint of customer; Comparison of the above fingerprint with fingerprint template stored on the smart card Validation of cards with respect to authorized hand held device Authentication of the customer; Secure storage of transactions; Facility for online connectivity; Voice guidance for transactions Printing of receipt in local language Facility to seed the Aadhaar Number Uploading and/or downloading of transactions to/from Intermediate system through online connectivity as well as through modes Secure communication between handheld device and all other devices/systems In case of any communication failure, it should ensure that no data is lost during transmission Printing reports/ mini-statements, receipts with a Impact printer is preferred. In case it is a thermal printer, then the paper used must be of superior quality. Maintenance of full traceability and audit trail of the transactions Locking the device from further usage whenever the business reached the permissible limit of transactions The handheld device should be able to maintain a database of linked customer accounts, and to transfer/upload the transactions through online connectivity or modes.
APPENDIX III
SCOPE OF BASIC BANKING PRODUCTS & SERVICES TO BE OFFERED
The Service Provider would be required to provide the services, facilities, infrastructure, technology, etc. The Service Provider shall provide the services through the BCA/BCO engaged by the Service Provider. The Bank will prescribe the number of BCA/BCO to be engaged in the area of operation. The Bank will have the option of increasing/decreasing the number of BCO up to 25%. List of additional locations where BCOs are to be established will be advised to the selected bidder by the bank separately. The bank would further have the option of relocating or discontinuing the BCO in areas where a bank branch gets opened during the period of the contract. In areas where relocation of BCO is suggested due to opening of bank branch, the BCO may be allowed to continue if the bank and the SP mutually agree that the BCO will still be viable. It is essential that the BCO has the required resources to provide the service mentioned in this RFP. New services may be added from time to time as per the instructions of the Bank and with mutual consent. This RFP covers locations mentioned in Annexure I. Bank reserves the right to add up to 25% locations where BCOs/BCAs are to be set up on the same commercials. However, Bank may, as part of their urban Financial Inclusion plans, consider request from the selected Service Provider to set up BCOs in urban locations up to an extent of 25% of rural BCOs operationalised. Commercials for these urban locations will be as per mutually agreed terms between the bank and the Service Provider.
1. Business Correspondent (BC) activities: a. Enrollment of customers, including demographic data, photo, collection of biometric and other documents of customers.
b. Provide card(ID Card, Debit Card, Smart Card, Rupay Card), PIN/Biometric based as decided by the bank.
a. Provide transaction facility like . Deposit of money in an account with the bank . Withdrawal of money from an account with the bank including EBT/DBT payments. . Remittances from an account with a bank to an account with the same or any other bank . Balance Enquiry and issue Receipts/ Statement of Accounts. . Disbursal of credit facilities to borrowers involving small amounts strictly as per the instructions of the Bank.
b. Other activities:
1. Identification of borrowers and classification of activities as per bank’s requirements. 2. Collection and prima facie scrutiny of loan applications including verification of primary data. 3. Creating awareness about savings and other products offered by the Bank and education or advice on managing money & debt counseling. 4. Preliminary scrutiny of data and submission of applications to the Bank for its review. 5. Promotion, nurturing, monitoring and handholding of Self Help Groups and/or Joint Liability Groups and/or Micro Credit Groups and others. 6. Facilitating the repayment of dues owed to the Bank by its customers/guarantors. 7. Sale of third party financial products
2. The above services are in respect of the following to be offered at the BCO (BC activity):
1. Savings Bank accounts 2. Recurring Deposit Accounts 3. Remittances 4. Fixed Deposit 5. Overdraft/Retail loan 6. KCC/GCC 7. Third party financial products
(b) Sourced for the branch (as permitted by RBI in guidelines) Some of the products are: 1. Loans against TDR/NSC/ KVP etc. 2. General purpose Credit card (GCC) 3. Kisan Credit Card (KCC) 4. Current Account 5. Savings Bank account (other than No Frills Account) 6. Term Deposits 7. Recurring Deposits 8. Mutual funds on a referral basis 9. Insurance (Life and Non-Life), Pension and any other third party financial product (c) Subject to meeting the eligibility criteria mandated by RBI, the BC/BCA shall be engaged as Recovery Agent and separate agreement(s) will be signed by the bank with SP/BCA.
3. Cash Management:
The Service provider will solely responsible for the cash management.
APPENDIX IV
Entities eligible to be appointed as Business Correspondents/BCAs and general guidelines to be followed by BC while appointing Business Correspondent Agents (BCAs)
The Service Provider would be required to appoint from among the following as the BC/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. Retired Bank employees 6. Ex-Service men. 7. Retired Govt. Employees. 8. Individual owners of kirana/ medical/fair price shop owners. 9. Individual Public Call Office (PCO) operators. 10. Agents of small savings schemes of Government of India/ Insurance Companies 11. Individual who own petrol pumps. 12. Retired teachers. 13. Authorized functionaries of well-run Self Help Groups (SHGs) linked to banks. 14. Individual members of Farmer’s Clubs. 15. Individual operators of Rural Multipurpose kiosks/ Village Knowledge Centers 16. Individuals/ proprietors/ owners who manage Agri Clinics/ Agri Business Centers. 17. Retired Post Masters. 18. Individuals such as auto dealers, tractor dealers and FMCG stockists. 19. Insurance agents including of private insurance companies (IRDA certified) and postal agents. 20. Individuals operating Common Services Centers (CSCs) established by Service Centre Agencies (SCAs) under the National e-Governance Plan (NeGP). 21. Any other individual considered suitable by the bank. 22. Companies registered under the Indian Companies Act 1956 with large and wide spread retail outlets, excluding Non-Banking Financial Companies (NBFCs). 23. Identified BCs and BCAs should not have been defaulters to any financial institution. 24. Identified BCs should not have been blacklisted by any bank in the last two years for deficiency of service.
While appointing Business Correspondent Agents (BCAs), following general guidelines should be followed by BC:
It is better to appoint an existing entrepreneur as BCA so that it is an additional income to him/her. This will improve the viability of BCA. While approving location of BCO, the place should be such that it is easily accessible and be preferably the place of weekly local ‘Haats’. The selection of BCA must be done by the SP with the consent of the concerned Branch Manager in whose service area the BCO is located. Preference should be given to such persons who are already doing some activity in the village. The device to be given to BCA should be interoperable through the gateway of NPCI so that the customer can access to any bank by using the device. The device must have biometric facility plus card or PIN/password plus card. The BCA must have on-line connectivity. The BCA must be responsible to receive and pay money, to transfer money from one to another. Each BCA will be assigned with business facilitator activity also. BCAs may also be used for deposit mobilization and as recovery agents as per the terms and conditions laid down by RBI for this purpose. Where a BCA has to work as a recovery agent, a separate agreement for this purpose shall be entered into by the Bank. The BCA will also be acting as an extension staff for micro insurance, animal insurance, crop insurance and micro pension. The banks will ensure coordination with the agencies, viz., LIC, Canara HSBC Oriental Bank of India Insurance Company Limited, United India Insurance Co. and other agencies dealing with these products. An officer of the branch of the bank will be visiting the BCO once in a week on a fixed time and day. This will instill greater confidence among the customers and facilitate increased banking transactions through BCAs. The BCA must be responsible for routing all transactions of the villagers in the assigned villages so that effective marketing and follow up can take place. It is necessary to ensure that there is a continuous improvement in the quality of services through the BCAs. There should be regular training and capacity development programmes for the BCAs, organized by the BC.
APPENDIX V Standard Operating procedure for BC
Logistics at the BC /Business correspondent outlets
1. Display of signage as approved by the Bank. 2. Display of Phone numbers of Help line, Bank officials (link Branch / /Circle Office) 3. Display of BC certificate as an authorized Bank’s BC. 4. ID card for BC and BCA to be issued by the Bank and BC respectively. 5. Ensure availability of required Stationery – Account opening forms, loan application forms, check lists, publicity materials / pamphlets / job cards for banking products.
Maintenance of Registers:
1. Records of customers enrolled; 2. Account opening forms sent to link branch; 3. Account opening forms pending to be sent; 4. Customer contact register; 5. Applications movement register; 6. Visitors/Bank officials visit register. 7. Name of grievance redressal official and contact no to be displayed. 8. Ensure provision like Cash box, almirah for safe upkeep of finger print scanner / device etc and other stationery registers. 9. List of Do’s and Don’ts for customers to be displayed. 10. Smart card received/issued register 11. Registers for Hardware/Software 12. Register for AMC details 13. Complaints register
Image building and trust
1. BCs to create awareness about the channel among the public in the area of operation. 2. BCs to market the banking products and a pull for the customers in the area of operation 3. BCs to do due diligence for BCA selection. 4. Arrange mass enrollments to reduce cost. 5. Arrange for training of BCAs.
Technical Requirement
1. Safe upkeep of front end device viz.POT, POS, Mobile, PC Kiosk. 2. Keeping the device battery charged / in ready mode for providing services. 3. Maintaining help line number of technology / device provider. 4. Downloading the updated versions of the front end applications. 5. Keeping the PIN / BCA cards secret to obviate any possibility of unauthorized use of the technology device.
Operational Requirement
1. Approval from the Bank for establishing a BCO at any centre. 2. Account opening form filling up and collection of required KYC documents / photograph of the customer. 3. Enrollment of the customer as per the process approved by bank. 4. Digitization of customer details within 3 days of customer enrollment and transmission of data to the bank. 5. Coordinating with link branches to expedite verification and upload of customer data in CBS for account creation. 6. Distribution/delivery of card / activation of the card & CBS account number to the customers after account creation in the bank’s CBS. 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. 9. Increase of BCA electronic threshold limits to ensure continuity in customer services as per bank’s requirement. 10. Arrange for availability of sufficient cash at BCO. 11. BC will ensure replenishing / collection of surplus cash from the BCO. 12. BC will ensure regular payment of remunerations to the BCAs. 13. BC will ensure availability of consumables like printing paper, ribbon etc at the BCO. 14. BC to ensure issuance front end system generated receipt to the customers on successful transaction. 15. To define dispute resolution mechanism 16. Forwarding any feedback / complaint received from the customers to the bank. 17. Risk mitigation process in operations 18. Arranging insurance for cash and devices at the BCO. 19. In case of temporary / permanent termination of BCA at any outlet, BC to make alternate arrangement to ensure continuity of banking services to the customers.
Legal Requirement
1. Persons / BCAs engaged by BC are not the employees of the bank and the bank shall not be responsible in any manner for payment of wage remuneration nor payment for PF, EPF due to such persons.
APPENDIX-VI FIXED CHARGES ON CERTAIN ACTIVITIES
Fixed Charges to be paid to the Business Correspondent A. For the activities mentioned in Column 1 below, Business Correspondent will be paid remuneration at the following rates for the new accounts only. Activity Remuneration
Customer mobilization (for BC activities) Rs. 20per account Savings Bank Account opening# Rs. 5 per account Recurring Deposit account opening
Rs. 5 per account Fixed Deposit* 0.5% of loan amount sanctioned Retail Loans/KCC/GCC subject to a minimum of Rs. 25 and maximum of Rs. 5,000
rd 75% of the commission bank earns 3 Party financial products like
Insurance (Life and Non-Life), Pension etc. (subject to regulatory approvals and the product not being sold by the bank) ( Does Not include Payment) SHG and JLG Not exceeding Rs.500.00 per SHG/ For formation and promotion JLG formed and credit linked with including credit linkage the Bank in stages as under. Rs. 100.00 For stationary and overhead expenses after saving linkage of SHG Rs. 200.00 4 months after saving linkage of SHG Rs. 200.00 Immediately after credit linkage of SHG Non cash transactions Rs. 5 per transaction Remittance/Fund transfer to other banks Nil Balance Enquiry * No charges will be paid if the fixed deposit amount is divided and separate accounts are maintained for the sake of remuneration.
#The charges towards enrollment of saving bank account will be paid after the smart card is linked and a successful transaction is put through the account.
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.
APPENDIX – VII
BUSINESS CORRESPONDENT AGREEMENT
This agreement executed at Bangalore on the ______between Canara Bank, a Public Sector Bank and a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings)Act,1970, having its Head Office at No.112, J C Road, Bangalore 560 002 hereinafter, referred to as 'Bank', represented by its General Manager ______(which term and expression shall unless repugnant to the context mean and include his successors and assigns)
AND
______-, incorporated under Companies Act having its registered office ______- and principal place of business ______-hereinafter referred to as “Business Correspondent (BC)” 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 BC has offered to provide services as may be required by the Bank.
NOW THEREFORE this agreement witnesseth as under:
1. Scope of Services:
1.1 The BC 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 specified in Schedule B. 1.2 BC shall ensure that its agents/employees, i. 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. ii. 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. 1.3 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. 1.4 BC 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 BC in writing and upon such advise, the amended Schedule ‘A’ shall become effective. 1.5 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. 1.6 The technological service standards for the services to be offered are in Schedule D. 1.7 The performance of the Business Correspondent will be reviewed, BCO wise, by a committee every month initially, and thereafter at such intervals as the banks may decide. 1.8 It is expected that Business correspondent Agents (BCA) are engaged and are activated in the villages listed in Appendix I of this RFP within 90 days from the date of award of contract. 1.9 The BC/BCA shall in consultation with the bank/branch announce to t he customers, the place where they can access and operate their account by using smart card. However, the Bank shall have the right to direct the BC/BCA regarding the place/premises, working hours, etc. of the BC/BCA. 1.10 The BCA shall compulsorily wear the Identity card provided to them by the BC and uniform provided if any, by the Bank, when they perform the services for the bank. Further the BC/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 BC shall engage only individuals with good track record and antecedents as BCA for performing the services under this agreement. For this purpose, the BC shall take all necessary steps for verifying the antecedents and track record, including obtaining report from police, shall exercise due diligence and also ensure the following while engaging BCAs. 1.12 The BCA should be hailing from the same area/permanent resident of the area at least for the past 3 years. 1.13 The BCA should be within the age limit of 60 years and have passed SSLC/Metric or unemployed graduate and should be able to read, write and speak the local language, besides English. 1.14 The BCA should be non political without any case for criminal act registered against him. 1.15 The BCAs should be physically fit to move around the areas envisaged to be covered. 1.16 The BC shall obtain from BCA their photos, address proof, conduct certificate from two respectable persons and other documents required while engaging /appointing them. The Bank has the right to publish the photo and other details of the BCA and other related staff of BC in the Bank's website. 1.17 The BC shall ensure that the BCAs engaged by them are not in service after attaining the age of 70 years. 1.18 The BC shall properly guide the BCA including giving training to them at their cost for providing services under this agreement and shall ensure that the BCAs are providing the service within the area/jurisdiction allotted to them. 1.19 The BC shall ensure that, the BCA shall not render similar services to anybody while acting as BCAs to them, unless specified by the Bank. 1.20 The BC agrees that all the clauses as applicable to them under this agreement shall be applicable to the BCA and for this purpose, the BC 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 the 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. 1.21 The BC 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 BC 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 BC at the cost of the BC, 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. 1.22 The BC 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 the BCA appointed by them. Any dispute between the BC and their BCA shall be dealt by the BC without reference to the bank and the bank shall not take cognizance of such things. 1.23 The BC shall duly notify the bank, immediately on termination of their agreement with the BCA and shall ensure that the obligation of the BCA with regard to confidential information shall survive even after termination of the agreement. The BC agrees to send a monthly report to the Bank, of such termination and re/appointment before 5th of the succeeding month. 1.24All charges towards engagement of BCA shall be borne by the BC. 1.25 On the termination of the services of the BCA, the BC shall inform to all the customers in the area at their own cost, about his termination and to ensure that, forthwith the BCA does not deal with the customers in connection with any of the transaction under this agreement. 1.26 It is also expected that each BCA will enroll at least 25% of target househo lds in the catchment area allotted within six months of starting the activity. Each BCA should enroll at least 300 accounts in the first year of operation. 1.27 Shortfall of more than 20% in achieving these targets will result in the services being treated as ‘unsatisfactory’.
2. Maintenance of Records by BC AND Monitoring / Inspection by the Bank. 2.1 BC 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 BC specifically agrees that the Bank shall be entitled to inspect and audit the records maintained by BC through its officers/employees or agents / auditors as may be decided by the Bank at its sole discretion and BC hereby undertakes to promptly produce all records and information required for this purpose / for the purposes of inspection and audit. BC 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 BC in connection with the services performed by BC for the Bank.
3. CONFIDENTIALITY
3.1 The BC 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. 3.2 The BC 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. 3.3 The BC 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. 3.4 The BC 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. 3.5 Further, the BC shall maintain the confidentiality of the information even after the completion or termination of the contract. 3.6 However, the Confidential Information shall not include any information tha t: (a) Was publicly known and made generally available in the public domain prior to the time of disclosure. (b) Becomes publicly known and made generally available. (c) Is required to be disclosed by law. 3.7 In the event that the BC is required to disclose Confidential Information by Law, the BC agrees to:
(i) Promptly notify the bank of the existence, terms and circumstances surrounding the requirement; (ii) 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; (iii) Furnish only that portion of the Confidential Information as is legally required to be furnished /disclosed. The obligation of the BC under this clause shall survive even after expiry of the agreement by efflux of time or termination.
4. RELATIONSHIP BETWEEN THE PARTIES.
4.1 It is specifically agreed that the BC 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 BC nor its employees, agents, representatives shall hold out or represent as agents of the Bank. None of the employees, representatives or agents of BC shall be entitled to claim permanent absorption or any other claim or benefit against the Bank.
5. Compliance with Laws by BC. 5.1 BC hereby agrees and declares that it shall be the sole responsibility of BC to comply with the provisions of all the applicable laws, concerning or in relation to rendering of services by BC as envisaged under this agreement. 5.2 BC 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 BC 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 BC 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 the BC have full authority and power to execute this agreement and bind BC.
6. Fees, Taxes, Duties, Payments and Penalty:
6.1 The Bank shall subject to rules for the time being in force, pay to the BC fee, 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 the BC shall be subject to TDS as applicable. The BC shall not be entitled to claim any other amount by way of reimbursement, remuneration, honorarium, allowances or otherwise, or benefits of any other type whatsoever. Further no fee shall be collected directly by the BCs from the customers. The remuneration payable is for the service rendered by the BC including their BCA and the BC is not entitled for any amount over and above the remuneration payable to them. 6.2 The BC will submit invoices for the current month in the subsequent month along with the required system generated reports so as to show the terminal transactions done during the month as annexure. The BC will confirm having credited the remuneration for the earlier month to the personal accounts of BCAs(account numbers lodged with us) before raising the invoice for payment from the bank. 6.3 The BC hereby authorizes to debit their current account no.______with, Canara Bank, ………………. branch by the Bank for the total amount payable to the BCAs as per the enclosure submitted along with the invoice(in case if the BC has not made payment to the BCAs). 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. The Bank will be provided with the relevant GEFU(Generic Electronic File Upload) file circle-wise etc. for this purpose along with the invoice. 6.4 All expenses, stamp duty and other charges expenses in connection with execution of this agreement shall be borne by BC. 6.5 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 @ Rs. 1,000/- per day (from the 11th day onwards) will be charged with a maximum of Rs 5000/- for each of the Business Correspondent outlet from the Service Provider.
7. BUSINESS CONTINUITY PLAN (BCP): 7.1 The BC agrees to appoint BCA immediately in case of termination/resignation/long absence etc. of BCA and ensure resumption of services within the maximum period of 10 days. 7.2 The BC agrees to reconcile the cash, collect all the records, Hand Held Machine and other things, immediately configure the HHM to the new BCA by providing BC card, access etc. 7.3 The BC agrees to ensure closure of Settlement account of the terminated/resigned BCA and arrange to open settlement account of new BCA. 7.4 The BC 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 The BC will provide assurance on their state of BCP preparedness once in a calendar quarter.
8. INDEMNITY
8.1 The BC 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: (i) The breach, default of or non-performance of undertakings, warranties, covenants or obligations under this Agreement by the BC/their BCA; (ii) Any contravention or Non compliance with any applicable laws, regulations, rules, statutory or legal requirements by the BC/their BCA; (iii) Any improper or negligent performance, act or omission or misappropriation of funds of the customer and the bank, improper use of machinery by the BC or any of its officers, employees, agents or representatives or BCA; (iv) 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. (v) 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. (vi) 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 (vii) Any claim from third party due to the act of the BC/BCA beyond the actual authority conferred to them by the Bank.
8.2 The BC 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 the BC on termination of the services:
8.3 The Bank is also entitled to adjust any amount due from the BC 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 the BC from the deposit/Bank Guarantee made by them, the balance due, if any shall be paid by the BC to the Bank and the Bank's decision as to the liability of the BC shall be final and binding on the BC
9. Term and Termination
8.1 The agreement shall be valid for a period of five 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.
8.2 The banks reserve the right to terminate the contract at any point of time if, a. The services are found to be unsatisfactory; b. There is a consistent failure to maintain the customer satisfaction; c. Desired levels of output by the Service Provider are not met; d. There is a discrepancy found in the accounts maintained by the Service Provider and the records of the Bank; e. The customers serviced by the Service Provider complain to the Bank that the Service Provider is inefficient; f. There is fraud in the accounts handled by the Service Provider; or h. Any other reason which in the opinion of the bank is not conducive to the continuation of the Services of the Service Provider.
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.
8.3 In the event of termination of the agreement, all records, information including documents etc. shall be returned by BC to the Bank as per instructions of the Bank.
8.4 The Bank shall have a right to terminate the agreement immediately by giving a notice in writing to BC in the following eventualities :
a) If BC applies to the Court or passes a resolution for voluntary winding up of BC or any other creditor / person files a petition for winding up or dissolution of BC. b) If any Receiver/Liquidator is appointed in connection with the business of the BC or BC transfers substantial assets in favour of its creditors or any orders / directions are issued by any Authority / Regulator which has the effect of suspension of the business of BC. c) If BC is unable to render the services up to the mark as envisaged under this agreement upon a reasonable assessment of the circumstances by the Bank which affect rendering of the services by BC as envisaged under this agreement. d) If any acts of commission or omission on the part of BC 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. e) If BC is owned/ controlled wholly/ partly by any other bank operating in India f) If any officer/ employee/ director of BC or their relatives as defined in section 6 of the Companies Act, 1956 becomes a director/ officer or employee of the Bank. 9.5 In the event of the termination of the agreement by the Bank pursuant to clause mentioned above, BC shall be liable and responsible to return all records and information in its possession. 9.6 The Bank will have exclusivity at the business correspondent outlet of the BC for the BC/BF arrangement.
9. Governing Laws & Jurisdiction :
10.1 The agreement shall be governed and construed in accordance with the Laws of Republic of India. 10.2 The parties agree to submit to the jurisdiction of the appropriate court in Bangalore in connection with any dispute between the parties under the agreement.
10. Notices: 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, telegram or 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 telegram or facsimile) or fifteen (15) clear days after posting (if the addressee is outside the country of posting).
11. Miscellaneous:
11.1 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.
11.2 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. 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.
11.3 The BC shall execute and deliver such additional documents and perform such additional actions, as may be necessary, appropriate or reasonably requested to carry out or evidence the transactions contemplated hereby.
11.4 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. 11.5 The captions herein are included for convenience of reference only and shall be ignored in the construction or interpretation thereof. 11.6 If this Agreement is signed in counterparts, each counterpart shall be deemed to be an original. 11.7 The BC 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. 11.8 The BC agrees that they shall not use the logo, trademark, copy rights of other proprietary rights of the opposite party in any advertisement or publicity materials or any other written communication with any other party, without the prior written consent of the Bank. 11.9 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. 11.10 The BC 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 by them 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. 11.11 The BC shall preserve documents and data in accordance with the legal/regulatory obligations of the bank. 11.12 The BC shall regularly assess the service provided by them/BCA and notify the bank on finding if any that may affect the performance of BC and Bank. Further any change in the BCAs due to termination or any other reasons shall be communicated by the BC to the Bank immediately. 11.13 The Schedules, Apendix/annexure mentioned in this agreement shall form part of agreement and shall be enforceable like other parts of the agreement. 11.14 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. 11.15 The Bank shall have the right for renegotiation regarding any service provided by the BC or any clause or whole of the Agreement and to intervene with appropriate measures to meet its legal and regulatory obligations. 11.16 The terms and conditions set forth herein can be modified by mutual consent of the parties in writing 11.17 .... The BC 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.
13. Force Majeure
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 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.
SCHEDULE `A’ Details of specific Services & Products to be rendered by BCA
As per Appendix III of the RFP
SCHEDULE `B’
Details of the number of Habitations to be covered by the Service Provider
As per Appendix I of the RFP
SCHEDULE `C’
ELIGIBLE ENTITIES AND GENERAL GUIDELINES
As per Appendix IV of the RFP
SCHEDULE 'D'
TECHNOLOGY SERVICES
As per Appendix II of the RFP
SCHEDULE `E’
FEE PAYABLE TO SERVICE PROVIDER
A. Fixed Fee:
As per Annexure V1 of the RFP
B. Cash Handling Fee:
Cash handling fee will be paid at the rate of Rs……. Per Rs 100/- ( Rs one hundred only). SCHEDULE `F’
Address for communication to be stated under Schedule ‘F’
1. The xxx General Manager 2.Director Xxx Bank ______
Corporate Centre ______
Xxx ______
Xxxx ______
Mumbai – xxxx ______
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement the day and year first hereinabove written.
For xxxx For M/s –______
(Bank) (Service Provider)
Witness Witness
1. 2.
TECHNICAL BID FORM ANNEXURE I
BIDDERS PROFILE
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 Ltd Co., / Pvt Ltd Co./ Partnership/ Proprietory Concern etc)
7 Date of Establishment:
8 Name of Chief Executive:
9 Name of Contact Person and Phone No:
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
Date: Signature of Authorized Official with Seal TECHNICAL BID FORM Annexure II
PROFILE OF EACH BC/ CONSORTIUM MEMBER (TSP) PROPOSED FOR THE PROJECT
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 PAN Number 7 Constitution (Public Ltd Co., / Pvt Ltd Co./ Partnership/ Proprietory Concern etc)
8 Date of Establishment:
9 Name of Chief Executive:
10 Name of Contact Person and Phone No:
11 Line of Activity:
12 Date from which the bidder is experienced in similar type of activity 13 Products Developed / Serviced (Attach product literature 14 Details of Quality Certifications Obtained for the Company & its Products, such as ISO- 9001:2000 etc. (attach Xerox copies).
15 Total Number of Employees:
16 Envisaged role of the Company
Financial 2009-10 2010-11 2011-12 Background Turnover Net Profit after TAX Total Assets Total Liabilities
Date: Signature of Authorized Official with Seal TECHNICAL BID FORM Annexure III
PARTICULARS OF REGIONAL / BRANCH OFFICES
1. Number of Offices:
2. Please furnish information about Offices in the following format
City / State Address Name of No. Of Qualified Whether adequate Person Support trained Manpower, In-charge and Personnel & knowledge base & Phone No their stock of spares qualifications available for support
Date: Signature of Authorized Official with Seal
TECHNICAL BID FORM Annexure IV
List of Major Banks/ Government Departments/ Agencies to whom Smart Card based Financial Inclusion solutions have been offered and related references: (provide copies of such major contracts executed)
Name of the Details of Equipment Contact Phone Bank & services Supplied Person contact offered details
Reference details of major contracts executed. Attach (a) reference letters for these contracts only (b) copy of Purchase Orders for each of the model)
Date: Signature of Authorized Official with Seal
TECHNICAL BID FORM Annexure V
FINANCIAL POSITION OF THE BIDDER (Enclose copy of Audited statements)
(In Rs in Lakhs) 2010 2011 2012 Audited (A) / Provisional (P) (A) (A) (A) Paid up Capital Tangible Net Worth Total Assets Total Sales (net of excise) PBDIT Profit after Tax
Please attach annual reports / duly audited financial statements for the last three financial years.
a) If the bidder is a Company, please confirm that the Memorandum and Articles of Association do not prohibit the BC activity (also attach copies of Memorandum and Articles of Association). b) In case of a Company, please furnish data on share holding pattern, names of main promoters and names of Directors. c) Please furnish data required for getting report from CIBIL on the Company, promoters and Directors. d) If the bidder is having a tie up with a TSP ( consortium member) , separate form is to be used to furnish the details for individual members.
Date: Signature of Authorised Official with Seal
TECHNICAL BID FORM Annexure VI
STATEMENT OF TIE-UPS/ AGREEMENTS ENTERED FOR THE PROJECT
S.No. Job / Task Agency Name Experience of Validity of tie- & Address the Agents up or agreement
Note: Copy /Copies of understanding/ tie-up/agreement should be enclosed.
Date: Signature of Authorised Official with Seal
TECHNICAL BID FORM Annexure VII
A . Technical Evaluation
Point Traits Max Reply of Bidder Marks no Marks Awarded 1 Hand held machine to be supplied 5 to comply with Micro ATM standards version 1.5 2 Smart Cards based solutions - 3 open standard for smart cast based solution for Financial Inclusion version 1.2 3 The solution shall be capable of 5 handling minimum of 10 Banking functionalities such as opening of SB & Term deposit accounts, Remittances, Loans, cash deposits, withdrawals, balance inquiry, mini statement, Micro insurance, Govt payments like NREGP, SSP etc. 4 The solution should ensure secure 3 communication between HHMs, inter mediatory server and FI Server and comply with acceptable security standards such as SSL for data download and upload. 5 Capacity of the Solution - No of 5 financial transactions supported per day.
Whether the Hardware and Software can be right sized to 2 meet additional transactions envisaged 6 Voice guidance mechanism : How 5 many Indian languages supported by the solution 7 Provide audit trails 3
8 capability of parameterization of 3 settings at interface servers for the upper /lower limits of all type of transactions 9 Capable of inter operability 5
10 Capable of Aadhaar No seeding 5
11 Checks for Bio metric De 5 duplications 12 Having Disaster recovery 5 management as apart of for Business continuity Plan 13 Scope of Facility Management 3
14 Does the bidder undertake all 5 activities of BC along with the Technical solution OR having consortium with any TSP. 15 Total no of banks in India for 5 which similar solution has been successfully Implemented 16 The solution should provide 5 standard MIS Reports as required by the bank and capability to provide MIS as required by statutory authorities for Financial Inclusion. 17 The solution should have provision 3 for taking backups of the transaction data and master data at periodical intervals and conform to Backup standards as contemplated by Information Technology Act, 2000. 18 The HHMs should support 4 connectivity through any communication channels such as GPRS, GSM, CDMA, and PSTN depending upon the type of connectivity available at the local place of operation. 19 Any activity through the HHMS 3 should be processed only on the biometric authentication of the BC and the customer jointly. 20 HHMS and its application should 5 be capable to fetch software upgrades, revision in business rules etc from the servers 21 HHM printers should be able to 3 print the receipts of all type of transactions in local language. 22 The bidder as part of Technical 5 compliance of the solution, has to give a demo of the solution 23 The bidder as part of Technical 5 compliance of the solution, arrange for an on site visit to one of the Public sector bank’s, where the solution is implemented.
B. Questionnaire
Feature Requirement Bidder’s Response 1. Architecture of the Financial Inclusion System Whether Architecture Proposed is Indicate the Centralized? architecture and data-flow Whether the solution proposed is Justify “Scalable?” Whether the solution proposed Specify the provides reliable security end-to-end? security measures in detail Whether the solution proposed is Describe having redundancies Whether the solution proposed has a Indicate the “Good Response Time” response times Comment on the Bandwidth utilization Indicate the by the proposed solution per user & band width Any optimization tools are available. required & tools for optimization Whether easier back up and retrieval Comment mechanisms are built in to the solution proposed? Business Process Continuity features Describe Whether the proposed solution is all Describe set for DR Replication 2. Protocols Used Specify the standards/ protocols Specify in detail supported/used between different components/modules in the total solution 3. Interoperability Interoperable with Other Servers in the Specify the bank protocols Comment on the interoperability of the Desired solution proposed with other applications/platforms. 4. Bandwidth and Other Details Indicate Type/band width for each type Indicate of connectivity in the present network architecture at each level. Attach Network architecture diagram Mandatory
Card Management Software
5. Features Bidder’s Response Platform and environment on which software runs (operating system, database, reporting tools, security environment supported/offered) Smart Card platforms, personalization systems and Host Security Modules supported (including data synchronization for contactless or dual-interface cards) Capacity in terms of cards, applications, simultaneous users, number of cards printed per hour, etc Structure of issuing process (immediate, batch, etc) Any specific interfaces to external databases such as Certification Authority, etc. Cryptographic algorithms and key management systems to be used. Workflow and processes for all relevant activities and lifecycle phases The method to be used for updating cards (online push, pull through scripting or action lists) Certifications or approvals by national authorities if required.
6. List of Hardware Proposed to be used by the Bidder (Please, cover all the equipment Server, Handheld devices, scanners, etc) location-wise (i.e., at Bank premises or Bidder’s premises): S. Type of Hardware Make and Model Quantity Proposed Use No. (eg.Server/Switch/ OFC etc.) 1 2 3
7. Details of Software Proposed to be used by the Bidder S. Software (Operating System, Bidder Version No. of Licenses No. Middleware, Application, etc) Required 1 2 3 4 5
8. External Backup Feature Requirement Bidder’s Response 1 External Backup system Give specifications of all proposed shall provide for the components of speed backup. external backup system proposed (make, model, configuration, backup speed, bench mark details with the proposed server/ storage, if any, etc.) 9. Any Other Equipment Proposed by the Bidder and not Covered Above (to make the solution fully functional as per the architecture proposed by the bidder): Feature Requirement Bidder’s Response 1 2 3 4 5
TECHNICAL BID FORM Annexure VIII
CONFIRMATION OF SOFT COPY To The General Manager CANARA BANK FI Division, PC & FI Wing, Head office JC Road Bangalore 560002
Dear Sir,
Sub: CANARA BANK Financial Inclusion Solution
Further to our proposal dated ……….. in response to the Request for Proposal (Bank’s tender No._____ hereinafter referred to as “RFP”) issued by CANARA BANK (“Bank”) we hereby covenant, warrant and confirm as follows:
The soft-copies of the proposal submitted by us in response to the RFP and the related addendums and other documents including the changes made to the original tender documents issued by the Bank, conform to and are identical with the hard-copies of aforesaid proposal submitted by us, in all respects.
Yours faithfully,
Authorised Signatory Designation Bidder’s corporate name
TECHNICAL BID FORM Annexure IX
BIDDER’s UNDERTAKING LETTER Date: From:
To The General Manager CANARA BANK FI Division, PC & FI Wing, Head office JC Road Bangalore 560002
Dear Sir,
We, the undersigned, as Bidder, having examined the complete RFP document (along with its appendix/annexure), do hereby offer to produce, deliver, install, support and maintain CANARA BANK Financial Inclusion Plan in full conformity of your requirements as elaborated in above said RFP for the amounts mentioned by us in the Commercial Bid or such other sums as may be agreed to between us.
We hereby agree to all the terms and conditions stipulated in the RFP except for the variations and deviations of requirements as mentioned by us in the Compliance Statement, submitted along with our Technical Proposal.
We agree to abide by our Offer for a period of 12 months from the date of last day of Bid submission and it shall remain binding on us for acceptance at any time before the expiration of this period.
We understand that you are not bound to accept the lowest or any bid you may receive. We undertake, if our Bid is accepted, to provide Contract Performance Guarantee, ATS/AMC Performance Guarantee in the form and in the amounts and within the times stipulated in the RFP.
We undertake as a part of this contract for successful operation of the CANARA BANK Financial Inclusion Plan including WAN and its expansion in future by the Bank during the warranty and AMC period (if contracted).
More over, 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.
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, the Bank will have the right to disqualify us from the bid.
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.
Yours faithfully,
(Authorised Signatory) In the capacity of ______Duly authorized to sign the Bid for and on behalf of ______
TECHNICAL BID FORM Annexure X
COMPLIANCE STATEMENT
We certify that except for the following deviations, we agree to abide by all other clauses, terms, conditions and specifications mentioned in the RFP.
Main RFP / Clause / Sub Deviation Specific Page Section Clause No. no. of the Response
Place: Date: Signature of Authorised signatory with seal
Note: If there are no deviations the bidder has to give his response by writing ‘NIL’ in the statement
COMMERCIAL BID Annexure XI To: Date The General Manager CANARA BANK FI Division, PC & FI Wing, Head office JC Road Bangalore 560002
Dear Sir,
Sub: Implementation of Financial Inclusion Plan
Having examined the Bidding Documents, the receipt of which is hereby duly acknowledged, we, the undersigned, offer to supply and deliver the smart card (includes the activity from procurement till activation) @ ------per card, and cash handling charges of 7 @ Rs…… per Rs one hundred.
We undertake, if our Bid is accepted, to deliver, install and commission the system in accordance with the delivery schedule specified in the Schedule of Requirements/ purchase orders issued from time to time.
If our Bid is accepted, we will obtain the guarantee of a bank in a sum equivalent to prescribed percent of the each of Purchase Order Price, placed on us, for the due performance of the Contract in the form prescribed by the Bank.
We agree to abide by the Bid and the rates quoted therein for the orders awarded by the Bank up to the period prescribed in the Bid which shall remain binding upon us.
Until a formal contract is prepared and executed, this Bid, together with your written acceptance thereof and your notification of award, shall constitute a binding Contract between us.
We undertake that, in competing for (and, if the award is made to us, in executing) the above contract, we will strictly observe the laws against fraud and corruption in force in India namely "Prevention of Corruption Act 1988".
We understand that you are not bound to accept the lowest or any Bid you may receive.
Dated this…………………… Day of……………………….2010.
(Signature) (Name) (in the capacity of) Duly authorized to sign Bid for and on behalf of
COMMERCIAL BID -Bill of Material Annexure XII
Sr. Particulars (Rupees upto 2 Quanti Total No. decimal places) ty* Price 1 Smart card (one time costs) (a) Cost of Smart Card 32 K (customer) Rs._____per card 4.5/3.25 /3.25 lacs in cluster A/B/C respecti vely (b) Cost of Smart Card 64 K (customer) in Rs._____per card In lieu place of 32 K card – difference of 32K (c) Cost of services for personalization Rs._____ per card 4.5/3.25 with photo and relevant data, (one time) /3.25 activation, delivery of the card to the lacs in customer. cluster A/B/C respecti vely Lakhs 2 Cost of Operations Consolidated Cost for cash handling ie Rs.______per Rs extending end-to-end banking & 100/-(Rupees one Rs financial services including BCA & Hundred) of 63000 technology services covering all amount lakh connected activities narrated in the transacted.(both per annum RFP. The services include hardware, Cash or transafer software, middleware and other transaction) infrastructure, HHM together with scanner, printer, etc., backend FI server storage, switching costs, connectivity charges, centralized terminal management services, facility management, cash handling, transportation & insurance, facilitating enrollment for new schemes, transactions including EBT payments balance enquiry, mini statement etc, cost of consumables (printer paper, ribbons, cells) etc. Bank has Presently 10 lacs account holders under the FI, and additional 11 lacs accounts which are to be opened. Bank is expecting an average of six transactions of Rs 500/- each per card per year. Grand Total
Note:* the quantity is given only for comparison to arrive at the lowest bidder, while the bank would make payments only on the actual which may be less than the figures indicated. Bank is under no obligation to procure volumes indicated herein above.
The prices will be inclusive of all taxes, duties, levies, insurance, installation charges, etc applicable all over India. Service Tax wherever applicable will be paid extra.
TDS will be deductible as per rules prevailing on the date of payment of applicable items.
The Unit Price mentioned in the bid would remain valid for a period of FIVE years irrespective of the quantity actually deployed.
Further, we declare that all the terms & conditions as per the RFP were read by us and we are agreeable for all the terms & conditions.
Date: Signature with Official seal