2012-13 REQUEST FOR PROPOSAL FOR BUSINESS CORRESPONDENT SERVICES 1 Contents 1. PREAMBLE 2. DEFINITIONS 3. REQUEST FOR PROPOSAL 4. SCOPE OF SERVICE 5. ELIGIBILITY CRITERIA 6. OVERVIEW OF EVALUATION PROCESS 7. TERMS AND CONDITIONS FOR THE PROPOSAL 8. SERVICE AGREEMENT AND PENALTIES Annexure – I DETAILS OF HABITATIONS TO BE COVERED Annexure – II (A) SCOPE OF SERVICES TO BE OFFERED Annexure–II (B) STANDARD OPERATING PROCEDURE Annexure – III (A) TECHNOLOGY SERVICES Annexure – III (B) TECHNOLOGY SERVICE LEVEL REQUIREMENTS Annexure – IV FIXED CHARGES TO BE PAID TO SERVICE PROVIDER Annexure - V ELIGIBILE ENTITIES Annexure - VI TECHNICAL BID FORMAT Annexure – VII INDICATIVE COMMERCIAL BID FORMAT Annexure – VIII OFFER COVERING LETTER Annexure – IX BUSINESS CORRESPONDENT AGREEMENT 2 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, the Public Sector Banks propose to engage the services of Business Correspondents as permitted by Reserve Bank of India. The Business Correspondents will render services on behalf of the banks, 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 no-frill account with Limited Overdraft, other loan accounts, Fixed Deposit, Recurring Deposit, KCC, GCC, Remittances, Micro Pension, Micro Insurance, and Mutual Funds etc. The project includes supply, commissioning, installation, up gradation, customization, integration, operations, services, maintenance and management of the entire implementation throughout the contract period of 5 years and which may be extended, subject to mutual agreement, by a further period of 2 years. The eligibility criteria, the evaluation process and other terms and conditions are set out in this RFP. The RFP is issued on behalf of all Public Sector Banks (PSBs), Associate Banks of SBI and Regional Rural Banks sponsored by PSBs covering the habitations mentioned in Annexure I. Banks 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 Banks in respect of the specified services and will not be eligible to claim any benefit except for the fee or commission as may be agreed. The Service Provider shall not use the trade mark, logo or any proprietary right of the Banks without their written consent. While Bank of Baroda is issuing this RFP on behalf of all Public Sector Banks (PSBs), Associate Banks of SBI and Regional Rural Banks sponsored by PSBs covering the habitations mentioned in Annexure I, similar RFPs are expected to be issued by different Leader Banks in different geographies across the country in due course. In all, it is a condition of this (and the RFPs to be 3 issued in due course) that no Service Provider can have more than 6 successful bids across the country excluding the following clusters. 1. Odisha (Odisha + Part of Chhattisgarh) 2. Chhattisgarh 3. North Eastern States 4. Jharkhand + Part of Bihar 5. Punjab + Haryana + J&K + Himachal 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 CSP. Gram Panchayat(s) will be the unit for operation and each BCA will cover all the villages in the Gram Panchayat(s) allotted to that CSP. Provided however, that in case more than one BCA is allotted for any gram Panchayat, their respective areas would be specifically defined. Provided further that in case a CSP of another BC already exists in a village, the CSP of that BC and the CSP of the SP who will be allotted the work under this RFP may be allowed to work in the same village concurrently. 2.2 “Banks” mean any one or more or all the PSBs, Associate Banks of SBI and Regional Rural Banks sponsored by Public Sector Banks. 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 Banks pursuant to the terms of this RFP. 2.5 “Business Correspondent” (BC) means any person/entity who is eligible to act as a business correspondent for the banks under the terms hereof for providing services described in Annexure II and Annexure III. The eligibility criteria for becoming a BC, other than those mentioned in paragraph 5 of this document and general guidelines 4 2.6 “BCA” means Agent/Employee of BC operating the CSP. The general guidelines to be followed by the BC for engaging a BCA are mentioned in Annexure V. 2.7 “Business Correspondent Agreement” means the agreement to be executed between the Banks and the Service Provider containing the terms and conditions on which the Services will be provided (a model agreement is annexed to this RFP). 2.8 “Customer Service Point (CSP)” means the outlet of the Service Provider which will be providing Banking and financial services. 2.9 “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. 2.10 “Leader Bank” means the Bank which floats this RFP for its own as well as for the requirements of other Public Sector Banks (PSBs) for the habitations specified in Annexure-I. 2.11 “Lead Bank” means the Public Sector Bank which convenes SLBC meetings in the State. 2.12 “NPCI” means National Payment Corporation of India. 2.13 “RBI’ means Reserve Bank of India 2.14 “RFP” means this Request for Proposal proposed to be issued on this 7th day of May 2012. 2.15 “Services” means the services to be provided by the Service Provider pursuant to the terms of the Service Agreement 2.16 “Service Provider” means any person /entity with whom the Bank enters into agreement for providing services of Business Correspondent with a technology solution as described in the ‘Scope of Work’ in this document. 2.17 “UIDAI” means Unique Identification Authority of India 3. REQUEST FOR PROPOSAL 5 3.1 This Request for Proposal is being issued by Bank of Baroda (Leader Bank) for itself and for other Public Sector Banks (PSBs), Associate Banks of SBI & Regional Rural Banks sponsored by PSBs inviting proposal from eligible bidders to be engaged as Service Provider by the Banks for a period of 5 years for providing services of Business Correspondents in the habitations listed in Annexure I to this RFP. The period can be further extended by another two years on the same terms and conditions with mutual agreement between the banks and the successful bidder. The Leader Bank requests response to this RFP only from those bidders who are eligible as per the eligibility norms detailed in this RFP. 3.2 The time schedule for various activities is listed below: Pre-bid meeting with prospective bidders Pre-bid meeting will be held at Jaipur on 23rd May, 2012. At 10 a.m. Venue: Hotel Man Singh, Behind Anand Bhawan, Sansar Chandra Road, Jaipur Tel - 0141.2378771 Last date & time for receipt of response to 11th June 2012 (2:00 pm) this RFP together with a Draft / Banker’s Cheque for Rs. 10,00,000/- as Earnest Money (refundable only to non-successful bidders) drawn in favor of Bank of Baroda & payable at Jaipur. Date and time of opening the technical bids 11th June, 2012 (4.00 p.m.) Date and time of reverse auction Date and time of reverse auction: 18th June, 2012. Times would be advised to successful bidders. Bidders may arrange to obtain Digital Signatures to participate in the reverse auction 6 Address for communication The Dy. General Manager Bank of Baroda Zonal Office, Anand Bhavan, 4th Floor Sansar Chandra Road Jaipur- 302001 (Rajasthan) Phone: 0141- 2378461/ 2310087 Leader Bank reserves the right to change the dates, timings and venue mentioned above or elsewhere mentioned in the RFP, which will be communicated by placing the same as corrigendum under Tender section on the Leader Bank’s web-site. 3.3 Disclaimer: 3.3.1 The information contained in this RFP document or any information provided subsequently to Bidder(s) whether verbally or in documentary form by or on behalf of the Leader 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 Leader Bank, but an invitation to offer. The purpose of this RFP is to provide the Bidder(s) with information to assist the formulation of their proposals. This RFP does not claim to contain all the information each bidder may require. Each Bidder should conduct its own investigations and analysis and should check the accuracy, reliability and completeness of the information in this RFP and where necessary obtain independent advice. Leader 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. Leader 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 Banks and the Bidder. 3.4 Amendment of Bidding Document: 7 3.4.1 At any time prior to the deadline for submission of Bids, the Leader 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.