Ab Rrb Cbs Sol Rfp 020310

Request for proposal for the implementation of Core Banking Solution in Regional Rural Banks sponsored by Andhra Bank

Reference No. 666/35/RRB-RFP/2009-10/16 dt. 02-03-2010

Andhra BankRFP for implementation of CBS in RRBs sponsored by Andhra Bank

February 2010

Contents

1 Preface 31.1 About this RFP 3

2 About Regional Rural Banks sponsored by Andhra Bank 52.1 About Andhra Bank 52.2 Profile of Chaitanya Godavari Grameena Bank (CGGB). 52.3 Profile of Rushikulya Gramya Bank 9

3 Objective and Scope of the Project. 133.1 Objective 133.2 Specific Goals and Scope of the Project. 133.3 Goals of the Project. 133.4 Scope of the Project 143.5 Implementation Scope for CBS 153.6 Branch-wise implementation Projections 17

4 Core Banking Solution Software requirements. 194.1 Finacle Universal Banking Solution. 194.2 Comprehensive Customer Information File: 194.3 CASA Accounts – Common: 204.4 Current Accounts 244.5 Savings Bank Accounts 254.6 Temporary Overdraft (TOD) in Current and Savings Accounts (CASA)264.7 Term Deposits 264.8 Advances 304.9 Inland Bills. 354.10 Bank Guarantees. 374.11 Branch Side Operations – Cash module. 384.12 Branch side operations - Clearing module. 394.13 Branch side operations – Remittances module 394.14 General Requirements 404.15 Nominal Heads 444.16 Head Office Accounts 444.17 Audit Requirements 454.18 Service Tax 464.19 Management Information Systems 464.20 Application Software Features 464.21 Functional requirements 47

5 Hardware requirements. 505.1 Hardware & Operating System requirement 50

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5.2 Supply of Hardware 505.3 Backup – Recovery – Replication Requirements 525.4 Acceptance of Hardware 535.5 Additional Information 545.6 Core Banking Solutions – Hardware Sizing 54

6 Implementation and maintenance services. 616.1 Software implementation. 616.2 Hardware implementation. 626.3 Handholding support at branches. 626.4 Resources for Helpdesk. 626.5 Resources for ongoing support. 636.6 Warranty and Annual Technical Support for Finacle and RDBMS. 636.7 Warranty and Annual Maintenance Contract for Hardware. 64

7 List of Indicative Deliverables 657.2 Deliverables for the Solution 657.3 Systems Deliverables 667.4 Training 667.5 Resources support: 66

8 Technical Bid – Organisation and formats. 688.2 Documents required as part of bidder’s profile: 688.3 Documents required as part of Technical Proposal. 688.4 Cost of Bid documents 698.5 Earnest Money Deposit. 69

9 Commercial Bid - Format for Bill of Materials 709.2 Application Software 719.3 Application Software Customization and implementation. 729.4 Hand holding support at Branches. 739.5 Training. 739.6 Hardware Requirements 749.7 Operating Systems: 759.8 Relational Database Management Systems 769.9 Work stations and other requirements at Data Center / DRC. 779.10 Annual Technical Support and Annual Maintenance Contract. 789.11 Resources for ongoing support. 809.12 Summary of Cost and Total Costs 82

10 Payment Terms. 8510.1 Payment Schedule 8510.2 Project Implementation Costs. 8610.3 Project Life cycle Costs 87

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10.4 Procedure for Claiming Payments 88

11 Eligibility Criteria 8911.2 Eligibility of Bidders 8911.3 Experience of the Bidder in implementing Core Banking Solutions 89

12 Evaluation Process 9112.1 Objective of Evaluation Process 9112.2 Technical Bid Evaluation Process 9112.3 Scoring Methodology for Functional Requirements 9212.4 Scoring Methodology for Technical and Solution Requirements 9212.5 Scoring Methodology for Structured Walkthrough 9312.6 Scoring Methodology for Past experience 9412.7 Scoring Methodology for Vendor Presentations 9412.8 Consolidated Score in Technical Bid Evaluation 9612.9 Disqualification Parameters in Technical Bid Evaluation 9612.10 Commercial Bid Evaluation 97

13 Bid Submission 9813.1 General Terms of Bid Submission 9813.2 Cost of Bid 9913.3 Earnest Money Deposit (EMD). 9913.4 Two Stage Bidding Process 10013.5 Sealing and Marking of Bids 10113.6 Commercial Bid 10113.7 Bid Submission 10213.8 Clarifications on the Tender Documents 10313.9 Amendments to Tender Documents 10313.10 Correction of Errors 10313.11 Confidentiality 10413.12 Indemnification 10413.13 Notification of Award 10413.14 Signing of Contract 10413.15 Jurisdiction 10413.16 Other Terms and Conditions 10513.17 Contact Details 10513.18 Evaluation Schedule 106

Annexure - 1 Compliance Certificate 107

Annexure - 2 Bidder Profile 108

Annexure - 3 Confirmation of Soft Copy 110

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Annexure - 4 Credentials – Core Banking Solutions implemented by the Bidder. 111

Annexure - 5 Team Profile 112

Annexure - 6 Project Plan and Resource Deployment 113

Annexure - 7 Query Format 114

Annexure - 8 Non – Disclosure Agreement Format 115

Annexure - 9 Write up on Products and Services of Chaitanya Godavari Grameena Bank. 117

Annexure - 10 Write up on Products and Services of Rushikulya Gramya Bank. 132

13.19 136

Annexure - 11 Write up on. 147

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List of Tables

Table 2-1 CGGB Business Indicators.....................................................................................................5Table 2-2 CGGB Branch distribution.....................................................................................................7Table 2-3 CGGB Products and Services.................................................................................................7Table 2-4 RGB Business Indicators........................................................................................................9Table 2-5 RGB Branch distribution......................................................................................................10Table 2-6 RGB Products and Services.................................................................................................11Table 3-1 Scope of the CBS Project for Andhra Bank sponsored RRBs.............................................15Table 3-2 Project schedule....................................................................................................................17Table 5-1 RRB CBS Server sizing parameters....................................................................................54Table 5-2 RRB CBS – Additional inputs for Solution Sizing............................................................55Table 5-3 Information on existing business for solution sizing...........................................................57Table 5-4Business projections for 5 year period for solution sizing...................................................58Table 9-1 AB RRB CBS Commercial Bid Format for Application Software.....................................71Table 9-2 AB RRB CBS Commercial Bid Format for Application Software customisation and implementation.....................................................................................................................................72Table 9-3 AB RRB CBS Commercial Bid Format for Handholding support.....................................73Table 9-4 AB RRB CBS Commercial Bid Format for Handholding support (Optional costs beyond 50 branches)..........................................................................................................................................73Table 9-5 AB RRB CBS Commercial Bid Format for Training.........................................................73Table 9-6 AB RRB CBS Commercial Bid Format for Hardware for DC...........................................74Table 9-7 AB RRB CBS Commercial Bid Format for Hardware for DRC........................................75Table 9-8 AB RRB CBS Commercial Bid Format for RDBMS for DC.............................................76Table 9-9 AB RRB CBS Commercial Bid Format for RDBMS for DRC..........................................76Table 9-10 AB RRB CBS Commercial Bid Format for Workstations (DC).......................................77Table 9-11 AB RRB CBS Commercial Bid Format for Workstations (DRC)....................................77Table 9-12 AB RRB CBS Commercial Bid Format for Annual Technical Support Charges – Application Software............................................................................................................................78Table 9-13 AB RRB CBS Commercial Bid Format for Annual Technical Support Charges – Oracle RDBMS etc.(DC)..................................................................................................................................78Table 9-14 AB RRB CBS Commercial Bid Format for Annual Technical Support Charges – Oracle RDBMS etc. (DRC)..............................................................................................................................78Table 9-15 AB RRB CBS Commercial Bid Format for Annual Maintenance Contract Charge – DC Hardware...............................................................................................................................................79Table 9-16 AB RRB CBS Commercial Bid Format for Annual Maintenance Contract Charges – DRC Hardware.....................................................................................................................................79Table 9-17 AB RRB CBS Commercial Bid Format for Annual Maintenance Contract Charge - DC Workstations.........................................................................................................................................79Table 9-18 AB RRB CBS Commercial Bid Format for Annual Maintenance Contract Charges (DRC)....................................................................................................................................................80Table 9-19 AB RRB CBS Commercial Bid Format for Manpower resources provisioning (DC)....80Table 9-20 AB RRB CBS Commercial Bid Format for Manpower resources provisioning (DRC).81Table 9-21 AB RRB CBS Commercial Bid Format - Consolidation..................................................82Table 10-1 AB RRB CBS– Payment Terms........................................................................................85Table 10-2 AB RRB CBS– Payment Terms – Project Implementation Costs....................................86Table 10-3 AB RRB CBS– Payment Terms – Project Life Cycle Costs............................................87

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Table 12-1 AB RRB CBS – Functional specifications mapping document for Technical Bid evaluation..............................................................................................................................................92Table 12-2 AB RRB CBS – TEVS Weightage Distribution...............................................................96Table 13-1Evaluation Schedule..........................................................................................................106

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1 Preface

1.1 About this RFP

1.1.1 Andhra Bank, a body constituted under Banking Companies Acquisition and Transfer of Undertakings Act 1980 has its Head Office at 5-9-11, Dr. Pattabhi Bhavan, Saifabad, Hyderabad-500004. It’s Department of Information Technology – Core Banking Solutions is located at 3rd Floor, “D” Block, Cyber Gateway, Madhapur, Hyderabad-500081, India.

1.1.2 Andhra Bank is hereinafter called “Bank” which term or expression unless excluded by or repugnant to the context or the meaning thereof, shall be deemed to include its successors and permitted assigns herein after called “Andhra Bank” or “Bank” or “bank”, issues this Request For Proposal, hereinafter called “RFP”.

1.1.3 The Request for Proposal is issued for inviting proposals (Technical and Commercial Bids) for the implementation of Core Banking Solution in Regional Rural Banks sponsored by Andhra Bank.

1.1.4 A vendor submitting the proposal in response to RFP for Implementation of Core Banking Solution in the Regional Rural Banks sponsored by Andhra Bank shall hereinafter be referred to as “Bidder / Vendor” interchangeably.

1.1.5 The RFP document is neither an offer letter nor a legal contract, but an invitation for offers / responses. No contractual obligation on behalf of Andhra Bank whatsoever shall arise from the RFP process unless and until a formal contract is signed and executed by duly authorized officers of Andhra Bank and the bidder.

1.1.6 The Bank has no obligation to accept any or the lowest quote. The Bank may decide not to accept any quote or may accept a quote that is not a lowest quote. The bank reserves the right to cancel the RFP at any point in time.

1.1.7 All offers of the bidders shall be unconditional and once accepted whether with or without modifications by the Bank shall be binding between the Bank and such Bidder.

1.1.8 However, this is a binding document between Bank and respondents till the completion of selection process and notification of award and till a contract is signed between Bank and the Vendor in the process in case both parties initiate and expedite certain actions pending the execution of a contract.

1.1.9 The Bank may modify any / all of the terms of this RFP and shall be entitled to award the contract to a selected bidder with / without modification of any conditions contained herein.

1.1.10 This RFP document is structured in such a way that the Bidders fully understand and acquaint themselves with the requirements of RRBs sponsored by the Bank..

1.1.11 The last date for the receipt of proposals responding to the RFP is 26th March 2010.

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1.1.12 While this section is a Preface to the entire document, the following sections are meaningfully segregated for better understanding of the document. The section headings or any other headings do not have any contractual sequence and the submission of responses to RFP should be based on total understanding of the document.

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2 About Regional Rural Banks sponsored by Andhra Bank

2.1 About Andhra Bank

2.1.1 Andhra Bank (http://www.andhrabank.in) has its history parallel to India’s freedom struggle and was founded by an eminent freedom fighter and a multi-faceted genius, Dr. Bhogaraju Pattabhi Seetharamayya. Bank was registered on 20th November 1923 and commenced its operations on 28th November 1923. Bank was nationalized on 15th April 1980 and is presently a Public Sector Bank with the Government of India holding 51% of its capital.

2.1.2 Bank has achieved a business of Rs. 117,899 Crores as on 31st December 2009.

2.1.3 Bank uses Information Technology in all spheres of its functioning by connecting all its branches, service centres and extension counters through its WAN and implemented Finacle Universal Banking Solution with 100% coverage.

2.1.4 Bank has sponsored two Regional Rural Banks namely Chaitanya Godavari Grameena Bank and Rushikulya Gramya Bank.

2.2 Profile of Chaitanya Godavari Grameena Bank (CGGB).

2.2.1 Inception: Chaitanya Godavari Grameena Bank (CGGB) was formed by the amalgamation of two Regional Rural Banks namely ‘Chaitanya Grameena Bank’ and ‘Godavari Grameena Bank’ with effect from March 1, 2006.

2.2.2 The shareholding pattern of the RRB is

Government of India : 50% Andhra Bank : 35% Government of Andhra Pradesh: 15%

2.2.3 CGGB’s Business Indicators as on 31st December, 2009.

Table 2-1 CGGB Business Indicators

Business Indicator Rs. In Lakhs

Net Worth 6081.93

Total Business 121337.57

Total Deposits 55014.95

Aggregate Deposits 54018.47

Gross Bank Credit 66322.62

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Low Cost Deposits 16592.56

Operating Profit 1385.57

Net Profit 1385.57

Interest Income 5951.73

Interest Expenditure 3313.09

Net Interest Income 2638.64

Non Interest Expenditure 1817.09

Credit Deposit Ratio 120.55

Investments 13985.44

Turnover in Credit Card Merchant Business Nil

Standard Assets 65573.16

Capital Adequacy Ratio (CRAR) 15.92

Per Employee Business 311.12

Priority Sector Advances 51990.53

Advances to Agriculture 49389.83

Credit extended to SME Sector 741.41

Retail Lending 377.07

Credit extended to Housing Sector 891.97

Educational Loans 590.20

Number of Self Help Groups (SHGs) to whom Bank has extended finance to

17911

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2.2.4 Organisation Structure

2.2.4.1 The Bank has a three tier organizational structure with the Head Office at the top, a Controlling Office in the middle and branches across Guntur, East Godavari and West Godavari districts in Andhra Pradesh.

2.2.5 Head Office and Controlling (Regional) office

2.2.5.1 Chaitanya Godavari Grameena Bank has its head office located at Brodipet, Guntur. The bank also has a controlling (Regional) office in Rajahmundry with jurisdiction over branches in East and West Godavari Districts. The Bank however functions on two tier basis for the Branches in Guntur District.

2.2.6 Branches

2.2.6.1 Chaitanya Godavari Grameena Bank has a branch network of 103 units including 101 branches and 2 Extension Counters.

2.2.6.2 The following table gives details of branches based on category

Table 2-2 CGGB Branch distribution

District Urban Branches Semi-urban Branches Rural Branches

Guntur 8 20 34East Godavari 2 6 13West Godavari

3 2 15

Total 13 28 62

2.2.7 Products and Services offered by CGGB are as follows:

Table 2-3 CGGB Products and Services

DEPOSITS ADVANCES

Current Deposits Loans against DepositsSavings Bank Accounts Loans against KVPs, NSCs, LIC policiesNirbhaya Savings Bank (Insurance Linked)

Loans against Shares and Mutual Funds

Nirbhaya Gold Savings Bank (Insurance Linked)

Loans against Gold (Non-Agricultural)

Suraksha Savings bank (Insurance Linked)

Clean Loans

Suraksha Gold savings Bank (Insurance Linked)

Loans against Merchandise

No Frills Account Personal Loans for Consumer Durables, Motor Vehicles

Fixed deposits Other term Loans against Mortgage of PropertyKalpalatha Deposits All Staff Loans

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Tax Saver Deposits Housing Loans to StaffCash Certificates Additional Housing Loans to StaffRecurring Deposits Kisan Credit CardsOverdue Deposits Rythu Mithra Groups

Joint Liability GroupsProduce LoansConverted Crop and Medium Term LoansRural Credit CardGold Loans AgriculturalAgricultural Term LoansAgricultural Allied ActivitiesIndirect Finance to agricultureSmall Scale IndustriesTransport OperatorsRetail TradeBusiness EnterprisesProfessional & Self-employedGeneral Credit CardHousing LoansEducation LoansSelf Help GroupsHousing Loans (Indiramma)Clean Overdrafts to StaffSecured OverdraftsSecured Overdrafts against GoldSecured Overdrafts against Mortgage of Urban propertyOpen Cash CreditSuit Filed AccountsClean Bills PurchaseClean Bills Purchase-Instant CreditSwarojgar Credit CardsCGC Invoked AccountsBank GuaranteesInvoked Guarantees PaidTemporary OverdraftsSolvency Certificate

2.2.8 Existing Computerisation

2.2.8.1 All branches of Chaitanya Godavari Grameena Bank are computerized using Micro TBA (MTBA) solution provided by M/s LaserSoft InfoSystems Pvt. Limited. Two branches perform clearing operations using RBI’s MMBC package.

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2.3 Profile of Rushikulya Gramya Bank

2.3.1 Rushikulya Gramya Bank is operational in two Districts of Orissa State.

2.3.2 The shareholding pattern of the RRB is

Government of India : 50% Andhra Bank : 35% Government of Orissa : 15%

2.3.3 RGB’s Business Indicators as on 31st December, 2009.

Table 2-4 RGB Business Indicators


Net Worth 3643.91

Total Business 107407.18

Total Deposits 74791.48

Aggregate Deposits 74791.48

Gross Bank Credit 32615.70

Low Cost Deposits 36045.30

Operating Profit 987.98

Net Profit 130.58

Interest Income 3875.64

Interest Expenditure 2413.18

Net Interest Income 1462.46

Non Interest Expenditure 1061.02

Credit Deposit Ratio 43.61

Investments 46388.90

Turnover in Credit Card Merchant Business ----

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Standard Assets 30125.70

Capital Adequacy Ratio (CRAR) 12.76

Per Employee Business 315.90

Priority Sector Advances 22204.19

Advances to Agriculture 7744.95

Credit extended to SME Sector 555.03

Retail Lending 3823.17

Credit extended to Housing Sector 1255.16

Educational Loans 168.03

Number of Self Help Groups (SHGs) to whom Bank has extended finance to

1905

2.3.4 Organisation Structure

2.3.4.1 The Bank has a two tier organizational structure with the Head Office at the top and the branches spread across Ganjam and Gajapathi districts of Orissa state.

2.3.5 Head Office

2.3.5.1 Rushikulya Gramya Bank has its head office located at Gate Bazar, Brahmapur – 760001 in Orissa State.

2.3.6 Branches

2.3.6.1 Rushikulya Gramya Bank has a branch network of 81 branches .

2.3.6.2 The following table gives details of branches based on category

Table 2-5 RGB Branch distribution

District Urban Branches Semi Urban Branches Rural BranchesGanjam 9 14 48Gajapathi - 1 9Total 9 15 57

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2.3.7 Products and Services offered by RGB are as follows:

Table 2-6 RGB Products and ServicesDEPOSITS ADVANCESCurrent Deposits Loans against DepositsSavings Bank Accounts Loans against KVPs, NSCs, LIC policiesSuraksha Savings Bank Mortgage LoansRushikulya Jeevan Suraksha Loans against Gold (Non-Agricultural)No Frills Account Clean LoansFixed deposits Loans against MerchandiseKalpabata Deposits Personal Loans for Consumer Durables, Motor VehiclesTax Saver Deposits Other term Loans for High Value AdvancesCash Certificates All Staff LoansRecurring Deposits Housing Loans to StaffRushikulya Sarvashreshta Additional Housing Loans to Staff

Rushikulya Bank Kisan Credit CardsRythu Mithra GroupsKisan Yagna (Two Wheeler Loans)Joint Liability GroupsAdvance against Rent ReceivablesGold Loans AgriculturalAgricultural Term LoansAgricultural Allied ActivitiesIndirect Finance to agricultureSmall Scale IndustriesTransport OperatorsRetail TradeBusiness EnterprisesProfessional & Self-employedGeneral Credit CardHousing LoansEducation LoansSelf Help GroupsRushikulya Laghu Udyog Credit CardClean Overdrafts to StaffSecured OverdraftsSecured Overdrafts against GoldSecured Overdrafts against Real EstateOpen Cash CreditSuit Filed AccountsClean Bills PurchaseClean Bills Purchase-Instant CreditRushikulya Swarojgar Credit CardsCGC Invoked AccountsBank GuaranteesInvoked Guarantees PaidTemporary Overdrafts

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2.3.8 Existing Computerisation in RGB.

2.3.8.1 All branches of Rushikulya Gramya Bank are computerized using Micro TBA (MTBA) solution provided by M/s LaserSoft InfoSystems Pvt. Limited. Three branches perform clearing operations using RBI’s MMBC package.

2.3.9 Products and Services offered by the RRBs

Both the RRBs offer all Banking services to the clients with special focus on Rural Lending. The service in brief include the following:

Current Deposits Savings Bank Accounts (including Insurance linked schemes) Term Deposits Overdrafts Cash Credits (including Kisan Cards) Demand and Term Loans Remittances (Drafts and Pay orders) Clearing Cash Bills and Cheques (inward and outward) Bank Guarantees Lockers (system support not expected for Lockers maintenance)

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3 Objective and Scope of the Project.

3.1 Objective

3.1.1 The objective of the Project is to implement a Centralised Core Banking Solution to the two Regional Rural Banks sponsored by the Bank to provide the benefits of centralization including delivery channels, payment systems etc. in phases and to help implementation of Financial Inclusion.

3.2 Specific Goals and Scope of the Project.

3.2.1 For the reasons of knowledge sharing, training and guidance, synchronization with parent bank etc. Bank has chosen to implement Finacle Universal Banking Solution in the Bank in the two Regional Banks.

3.3 Goals of the Project.

3.3.1 Following are the goals of the project:

Implement a unified Core Banking Solution duly establishing a single Data Center for both the RRBs for the centralization of application and data covering 182 identified branches and 2 Extension Counters, along with existing Controlling (Regional) Office and Two Head Offices of the two RRBs, and new branches opened during implementation.

Deploy a robust solution to handle high volume of data using a standard RDBMS, responding to all types of transactions within the stipulated time limits under peak load and supporting estimated concurrent user access.

Introduce new delivery channels such as ATM and Internet Banking (in subsequent phase)

Introduce National Electronic Funds Transfer

Ensure high availability by building redundancies in hardware, network and other systems at Data Center and also have corresponding systems at a Disaster Recovery Center.

Leverage centralized data for Management and Executive Information System and use the centralized data for meeting regulatory and statutory requirements of individual RRB.

Ensure high level of confidentiality and integrity to the data of Bank.

Enable Financial Inclusion.

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3.4 Scope of the Project

3.4.1 The scope of the project includes provision of all necessary or customary components for a centralized Core Banking Solution, including, but not limited to, suitable hardware, operating systems, application software, RDBMS and other required systems, their installation, performance tuning, and facility management as a Total Turnkey Solution so as to be able to achieve the relevant service levels described herein. Bank will provide necessary Network connectivity, Data Centers (Primary and Secondary sites) and ensure their maintenance either through internal arrangements or through a Separate Service Provider.

3.4.2 The implementation of Core Banking Solution aims to evolve a “Customer Centric, Enterprise Architecture” for RRBs. The solution is expected to provide an enterprise view and management services of Bank maintaining the identity of branches and delivery channels. The bidder has to necessarily propose only Finacle Universal Banking Solution (with a version suitable to the RRBs) duly understanding and provisioning the customisation requirements in accordance with the details provided in the RFP.

3.4.3 For the purpose of performance measurement and also to meet regulatory and statutory requirements, the branch shall be retained as a delivery channel, providing an enterprise concept for the customer and Management & Executive Information Systems.

3.4.4 The scope of the project is enumerated in the table 3.1. The requirements are provided in brief as bulleted items. The scope of the project for the sake of understanding is divided into four main groups, viz. (1) Solution Scope (2) Functional scope (3) Technical scope (4) Services scope.

3.4.5 The detailed requirements on each of the areas are mentioned in the following sections.

3.4.6 While the objective of the Sponsor Bank is to bring all its RRB branches, controlling / administrative offices, other functional offices and delivery channels under Core Banking in a phased manner, the scope of the project envisaged under this RFP is for covering 182 branches, 2 Extension counters along with 3 controlling / administrative offices, and all delivery channels under Core Banking by 31st December 2010. The branches that are expected to be opened in due course are also to be covered under Core banking.

3.4.7 Taking into consideration the contents of this RFP along with its annexures, the Bidder shall be required to estimate size and propose a Core Banking (Centralised) solution which is suitable to the RRBs and meet all the present and upgrade requirements desired by the RRBs. The Bidder shall also propose all the services that are required for the implementation and smooth functioning of the solution for a period of 5 years.

3.4.8 The Bidder shall be required to estimate all the required products and services considering that only principal provisions are given in this RFP. The Bidder has to take total responsibility for working out macro and micro level details of the project plan and the requirements and make provision to utilise the existing infrastructure as per the information furnished in the RFP about the availability for such systems for the use in this project scope.

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3.4.9 The Bidder shall be required to implement the proposed systems and provide support and maintenance for all the systems either, supplied and installed within the scope of this RFP or existing systems that are included for maintenance within the scope of work for a period of 5 years from the date of signing the contract.

3.4.10 The Bidder shall provide necessary resources for the maintenance of Hardware, Operating System, Middleware, RDBMS, Application Software and any other component that is proposed in Bill of Material as part of solution in response to RFP for a period of 5 years.

3.4.11 The Bidder shall be required to submit a project plan considering the entire scope expressed in the RFP document or scope deemed necessary and manage the project execution as per the plan approved by the Sponsored Bank. The plan submitted should cover all the assumptions that have been made by the bidder for a smooth execution of the project.

3.4.12 The Bidder should consider and plan the project as on on-going project beyond the contractual period of 5 years where the scope of the project can be extended by the Bank at its option. Bank’s option of extending the scope may at the minimum cover:

Addition of more branches, offices under CBS

Extension of Service Obligations under Annual Technical Support, Annual Maintenance Contract, Warranty, Resources for Maintenance Services, etc

Addition of Features / Modules

Any other component of the project

3.5 Implementation Scope for CBS

3.5.1 The scope broadly as follows:

Table 3-7 Scope of the CBS Project for Andhra Bank sponsored RRBs

Component Requirement Remarks

Finacle Application Software For two RRBs @100 each as initial lot with option to buy in the bundles of 10 additional licenses for each RRB at an optional cost.

The rates are to be valid for a minimum contractual period of 5 years.

Oracle RDBMS licenses As required by the proposed hardware

Middleware/any other components required

Any other licensed component required for Finacle CBS implementation

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Finacle CBS customisation as per requirements, implementation support – Pilot consisting of 10 branches.

Detailed System Study, Business Process Definition, Providing environment for User Acquaintance and User Acceptance Tests etc. will also form part of this item.

Data upload/migration support For all 184 units. Data Center level activity.

Data will be provided by the Bank in Finacle uploadable formats. The formats are to be provided by the vendor with proper explanation of the fields. The uploading to Finacle production system during migration with mock activity in the test system falls in the scope of this item.

Handholding support (Onsite) For first 50 branches (25 branches for each RRB)

With onsite resource for one week per branch beginning usually Sunday to Friday for 6 days.

Core Team Training by Infosys

One batch of 20 members The training expected by the Bank is less than the normal duration Core Team Training. A truncated need based program of 3 weeks (18 working days) is envisaged.

Application Support With a minimum of 3 resources duly adjusting the shifts in accordance with the functioning and volumes of the RRBs.

From Andhra Bank, DIT, Cyber Gateway

Oracle DBA With a minimum onsite support and to provision required number of man days.

HardwareWeb serversApp ServersDB ServersStorageTape LibraryTest systems for Finacle

It is envisaged to have separate instances for each RRB on the same set of servers.

High availability, redundancy is to be ensured with

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architectural optimization without jeopardizing security.

Hardware installation Services Depending on Hardware sized and included in Bill of Material.

This is an end to end activity including OS hardening etc. and as needed by Oracle/Finacle.

Hardware maintenance services

On going maintenance support for 5 years.

This is besides warranty and Annual Maintenance Contract. These resources have to extend onsite maintenance services for all Hardware / OS / Storage / Tape Library etc. and always work in coordination with Oracle DBA and Application team.

Help Desk resources 3 Resources for each RRB Infra will be provided by the respective RRBs. The resources will work in coordination with RRB resources and with the guidance of L2 support from Andhra Bank Data Center where RRB application will be maintained.

3.5.2 The above requirements are detailed in following sections.

3.6 Branch-wise implementation Projections Table 3-8 Project schedule

Serial No.

Phase Scope Inclusion Completion Deadline

1 Pilot –5 Branches in each RRB Included as mandatory scope for end to end roll out service including hand holding support

10th July 2010

2 Phase I Rollout – 25 Branches in each RRB (cumulative)

Included as mandatory scope for end to end roll out service including hand

31st August 2010

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Serial No.

Phase Scope Inclusion Completion Deadline

holding support

3 Phase II Rollout – 50% of branches in each RRB (cumulative)

Data uploading and migration services included. Handholding support optional

25th September 2010

4 Phase III and Final Rollout – 100% of branches in each RRB

Data uploading and migration services included. Handholding support optional

30th December 2010

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4 Core Banking Solution Software requirements.

4.1 Finacle Universal Banking Solution.

4.1.1 Andhra Bank intends to deploy Finacle Application Software from M/s Infosys Technologies as a part of Core Banking Solution implementation in its two sponsored RRBs, as the Application Software being used by the Sponsor Bank for its Core Banking Solution is Finacle. This will facilitate uniformity in the technology platform and related business processes.

4.1.2 Andhra Bank, on behalf of its RRBs requires the following components in an integrated environment for the implementation of proposed CBS.

Common requirements for all modules

o Customer Information Systemo Signature Capture and Verification

Cash Module

Clearing and Service Branch

Deposits (CASA and Term Deposits)

Loans and Advances (post sanction)

Bills

Guarantees

Remittances and Inter Branch Reconciliation

Fees, Service tax, Interest and Charges

MIS

General Ledger

Lockers

Delivery channel connectivity through Connect24.

National Electronic Funds Transfer – through Sponsor Bank as per RBI guidelines.

The detailed requirements for each of the above areas are provided in the following sections.

4.2 Comprehensive Customer Information File:

4.2.1 System should generate unique customer ID for any type of customer across any of the branches under CBS on accepting the details and counterchecking the data base for duplicates.

4.2.2 Customer Id should be auto generated, and not to allow the user to enter the same.

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4.2.3 System should capture party identification details such as PAN number, Unique ID number etc. as per RBI/Bank’s requirements.

4.2.4 Ability to capture data like occupation / employment, nature of activity, anticipated level of activity.

4.2.5 Ability to capture PID details validating customer IDs with duplicate PID details.

4.2.6 System should generate alerts, if the introducer is a staff member.

4.2.7 System should give alert on the number of customers already introduced by the introducer.

4.2.8 System should identify a customer ID as KYC compliant or not, by capturing a flag / field.

4.2.9 The system should be capable to capture all the required data of the customers of different constitutions/types, as per Bank’s requirements and statutory requirements like RRB guidelines, KYC/PML norms.

4.2.10 System should allow modification in customer name under exceptional circumstances, with higher level authorization.

4.2.11 Ability to select and drill down customer details based on short name/ alphabets to identify correct ID of the customer.

4.2.12 The system should be able to store relevant data and to provide reports like Customer details, resume across all his accounts, history of changes done in CIF with old & new values etc.,

4.2.13 The system should allow generation of reports based on details of customer such as cheques presented, retuned, average balance, transaction turnover (based on parameterized amount/period), Customer constitution, customer type, customer status etc.,

4.2.14 The Customer Information Module should provide a single view of customers across the products and should have capability to integrate with all the modules across the CBS.

4.2.15 System should be able to support village masters (as in existing system)

4.3 CASA Accounts – Common:

4.3.1 Account Opening:

4.3.1.1 System should permit opening of a new account only if Customer Master (CIF) is present, for Main account holders / Joint Account holders.

4.3.1.2 System should have ability to link any number of accounts across the bank to a customer.

4.3.1.3 Account opening or modification or closure should be done under maker checker concept, with appropriate user levels.

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4.3.1.4 Account number is to be auto-generated by system, with check digit. Provision should be available to parameterize the structure of "Account Number" as per Bank’s requirement.

4.3.1.5 While opening an account, the system should have the ability to take all customer details in the existing Customer Information file and populate the details automatically.

4.3.1.6 Facility for automatic capture of default values specified for the selected scheme code.

4.3.1.7 Ability to auto populate default values in generic fields as given by Bank, with a provision to modify the same by the user.

4.3.1.8 The system should have the ability to parameterize the eligibility criteria for opening different accounts for different customer types/constitutions. Also, the system should be capable to capture the information regarding prohibitions and exemptions pertaining to the particular constitution. System should validate such parameters with the fields in CIF while opening the accounts, and should throw alerts wherever deviations are found.

4.3.1.9 System should have the capacity to capture Introducer details such as Name, Customer ID, Address, relation with the customer, Period of Knowledge about Customer etc. Introduction should be optional as per KYC norms.

4.3.1.10 Ability to generate letter of thanks to the Account holders after an opening of account, with a provision to generate the letter to any or all of Main account holder, Joint Account holders, Introducer & Related parties.

4.3.1.11 If an account opened as transferred in account then free text fields under MIS tab customized to capture last insurance posted and branch details for insurance linked schemes.

4.3.1.12 Ability to restrict schemes to particular category of branches like Metro, Urban etc.

4.3.1.13 Ability of the system to capture and store the list of banned/ terrorist organizations and search the lists to ascertain whether the applicant is named in the list and provide appropriate alerts

4.3.1.14 Ability to enter risk rating for all operative accounts during account opening with a provision to modify the same either upward or downward with higher level authorization, and to generate a report of accounts, risk rating wise.

4.3.1.15 Ability to parameterize turnover limit in accounts, and to generate a report in case transactions turnover in account exceeds a parameterized percentage of the specified fixed turnover

4.3.2 Account Maintenance & General:

4.3.2.1 Ability to define the limits for transactions in new accounts, with a provision to override the same as an exception.

4.3.2.2 Facility to switch from one scheme to the other without change of account number

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February 2010

4.3.2.3 Facility to support sweep and reverse sweep from the operative account to term deposit, after keeping the minimum balance as parameterized

4.3.2.4 Ability to add or delete the names of a party from an account

4.3.2.5 Nomination facility with acknowledgement, modification, necessary registers maintenance. Nomination should be mandatory for Insurance deposit accounts.

4.3.2.6 System should be able to generate balance confirmation letters, interest certificates.

4.3.2.7 Ability to block the pay interest and collect interest fields from modification by user.

4.3.2.8 Allowing Temporary Overdraft (TOD)

4.3.2.9 Ability in the system to disallow employees (logged in users) to pass cheques/ instruments in their own accounts (this would be possible only in cases where more than one officer is available in the branch)

4.3.2.10 To parameterize minimum balances in the account based on the scheme code, location of Branch, cheque book facility. System should raise alert during transaction, if the balance will fall below the minimum balance stipulation because of that transaction.

4.3.2.11 Ability to credit or debit any of the accounts within CBS (ABB), subject to parameterized exemptions (e.g. illiterate account/ Inoperative accounts/ new accounts etc.)

4.3.2.12 System should support issue of Pass Book / Account statement, at the option of account holder.

4.3.2.13 Ability to issue pass book in the format provided by the bank along with full address and telephone number of the Branch. The unique customer identification/ account number should also be printed on the cover of the pass book

4.3.2.14 Provision for Lien marking upto specified amount. Marking or un-marking should be done with maker & checker concept with appropriate user levels. Required reports and logs should be available for the same.

4.3.2.15 Provision for account freeze, for debit or credit or both. Freezing or unfreezing should be done with maker & checker concept with appropriate user levels. Required reports and logs should be available for the same.

4.3.2.16 Providing cheque book facility based on scheme type / as per customer request.

4.3.2.17 Provision for acceptance/revocation of Stop payment instructions. System should validate the same during all types of transactions.

4.3.2.18 Provision should be available to parameterize the duration for marking an account as inactive/dormant and system should mark the accounts as inactive or dormant, as per parameterization.

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February 2010

4.3.2.19 Provision to change of account status from Dormant to Normal should seek authorization of higher level.

4.3.2.20 System should block credit transactions in dormant accounts.

4.3.2.21 System should be able to pick Finacle account number, if the user enters the account number in old format.

4.3.2.22 System should be able to capture data like type of transactions to be conducted, sources of funds.

4.3.2.23 Provision to collect premium / service charges for failed accounts.

4.3.2.24 Identifying No-Frill accounts crossing the limits and freezing the same.

4.3.2.25 Provision to mark an account as Unclaimed, and to generate required reports on unclaimed deposits as per statutory requirements.

4.3.2.26 During account closure, system should pay/recover applicable interest and to recover applicable account closing charges.

4.3.2.27 Ability to close all zero balance accounts after a parameterized period in case no transactions occur during that period.

4.3.2.28 Provision to auto closure/batch closure of account based on certain parameters like zero balance, dormant, non-maintenance of minimum balance or frequent cheque returns etc., Provision to issue prior notices, and advices after closure.

4.3.2.29 While account closure, system should validate for linking of the account with other accounts, standing instructions, pending cheques for collection, ATM card linking, charges pending for recovery etc., and should give appropriate alerts. Account closure should be restricted or allowed only by overriding by higher level users.

4.3.2.30 Ability to capture the source and use of funds for transactions above a certain limit.

4.3.2.31 System should support quick account opening facility i.e opening of customer master and SB account by furnishing 4 to 5 fields, so that the user can update the remaining fields during non-peak hours.

4.3.2.32 Ability to send account statement through e-mail.

4.3.2.33 System should support for numeric fields to allow entry of numeric values only.

4.3.2.34 Ability to make some of the existing fields as mandatory as per bank’s requirement.

4.3.2.35 If entry and verification are allowed in single menu option, verification should be allowed to higher work class only as specified by bank.

4.3.2.36 Ability to add new fields in CIF/account opening screens, as per bank’s requirement.

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4.3.3 Interest:

4.3.3.1 Ability to maintain scheme wise Interest rates and to modify the same with effect from a previous/ future date. In case rate of interest is effected from a previous date, interest/ products are to be reworked accordingly. Ability to maintain history of the same.

4.3.3.2 Ability of the system to create interest provisions as and when required by the Bank for periodical profitability arrival or for Balance sheet purpose. System should ensure reversal of the same without manual intervention.

4.3.3.3 Ability to parameterize the nature of interest application i.e., daily products or minimum balance between 10th to month end or as per RBI norms, and to apply interest at Bank specified periodicity, as parameterization.

4.3.3.4 To recover TDS from interest payment on specific schemes like SBNRO etc., as per Bank’s requirement / statutory obligation. System should be capable of recovering differential rate of TDS depending upon the country the customer is residing.

4.3.4 Insurance:

4.3.4.1 Provision to parameterize Minimum & Maximum age, Insurance premium/service charges/service tax for different schemes or products, and for different age slabs.

4.3.4.2 Provision to recover the insurance premium/charges automatically, on the day of account opening and also on a pre-defined date of insurance year-end, for renewal of scheme.

4.3.4.3 Insurance premium/service charges are to be recovered to main account holder/joint account holder/other related parties, as per parameterization or specification in account master.

4.3.4.4 The recovered premium should be credited to respective office account/insurance company accounts as per the bank’s requirement at the account branch or at a designated nodal branch.

4.3.4.5 Reports should be available in specified format, on the list of accounts with details of insurance premium/charges recovered or not recovered, along with reason for the same.

4.3.5 Service Charges:

4.3.5.1 Ability for defining different service charges scheme -wise/ customer type -wise based on a flag indicating applicability of service charges

4.3.5.2 Ability in the system to facilitate parameterization, collection and exemption of the charges such as Minimum Balance charges, account closure charges, stop payment charges, charges for loss of cheque book, duplicate passbook/statement charges, cheque book issue charges, inoperative charges, folio charges, cheque return charges, Number of withdrawals exceeding the parameterized limit per month/quarter, handling/ incidental charges on insurance linked accounts and other charges etc.,

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4.3.5.3 Parameterization for charges/collection should be done at Scheme level and exemption should be done at account level.

4.3.5.4 Ability to parameterize Service Tax and to recover the same along with Service charges.

4.3.6 Signature Scanning:

4.3.6.1 Ability to scan signatures/Photos and to link to the accounts.

4.3.6.2 Ability in the system to disallow modification or deletion of signature once linked to the account. Only addition of signature should be permitted. History of the same is to be maintained.

4.3.6.3 Facility to display latest signature/ photos of account holder/authorized/ joint signatories, during financial & non-financial transactions, or with the help of hot keys

4.3.7 Minor accounts:

4.3.7.1 Proper alerts to be thrown while effecting Financial and Non-financial activities in such accounts.

4.3.7.2 Ability to Identify the minor account on attaining majority and provide appropriate alerts / reports.

4.3.7.3 Ability to generate letter on minors attaining majority. Also, provision to: i) generate a letter addressed to the guardian (where the account is operated by the guardian) at least one week prior to minor becoming a major and (ii) generate a letter addressed to the minor who becomes a major. This should be done both in the case of accounts in single names as well as in joint names

4.3.8 Reports-general:

4.3.8.1 Facility to calculate average monthly balances for extending various facilities, i.e. issue of free DDs or offer any other facility as prescribed by the Bank (parameterized).

4.3.8.2 Facility to generate the resume of an account or range of accounts in required format.

4.3.8.3 Provision to generate all the reports required for Branch verification, internal MIS & statutory requirements.

4.3.8.4 Provision to generate the advises/notices/statements required to issue to the customers.

4.3.8.5 Provision to generate reports based on transactions in new accounts, inoperative/dormant accounts, Accounts opened and closed in a specified period/scheme/location, insurance related, unclaimed deposits etc.

4.3.8.6 Ability for reporting of cash transactions of Rs. 10.00 lakhs and above during given period (parameterized)

4.3.8.7 Facility to generate consolidated reports for a given SET ID.

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4.4 Current Accounts

4.4.1 The system should be capable of defining and operating Current deposit type of accounts. The system should support all the schemes as listed in Annexure 9.

4.4.2 These accounts can be opened by individuals, JHF, proprietary concern, partnership firms, private and public limited companies, registered or unregistered clubs and associations, co-operative societies, Government Departments, religious endowments, semi Government or local bodies, trusts, executors, administrators, liquidators, receivers, assignees etc.

4.4.3 By default, Current Accounts should be, Interest free, with cheque book facility, and with certain minimum balance stipulation. But, there should be provision to pay interest on Current accounts in special cases, to open current accounts without cheque book facility, and without minimum balance stipulation.

4.4.4 Operating the account regularly and frequently without any restriction on number of withdrawals or deposits.

4.5 Savings Bank Accounts

4.5.1 The system should be capable of defining various Savings Bank (SB) schemes such as General SB accounts, No Frills Accounts and Insurance Linked Accounts. The system should support all the schemes as listed in Annexure 9.

4.5.2 The system should provide for opening of SB accounts for the customers of different constitutions and customer types like in the name of individuals, Joint accounts, Purdanishi ladies, Illiterate persons, Students, minors, visually impaired persons etc.

4.5.3 These accounts can be opened by individuals / jointly with the name of the two or more persons, payable to any of them or to the survivor or survivors or to all of them jointly

4.5.4 Prohibit opening of such accounts in the name of a trading / business concerns, government departments, bodies, agencies depending upon budgetary allocations for their functioning with certain exceptions.

4.5.5 System should be able to support Group SB accounts for SBSHG, SBRMG, SBJLG.

4.5.6 No Frills Accounts:

4.5.6.1 Ability to open No Frills Accounts with relaxed KYC norms / zero balance, and to maintain zero/low minimum balance.

4.5.6.2 Ability to exempt No frills accounts from specified service charges.

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4.5.6.3 There should be provision to parameterize Maximum Limits for (a) total credits to the account during year, and (b) Credit balance at a given time.

4.5.6.4 There should be provision to parameterize Alert Limits for (a) total credits to the account during year, and (b) Credit balance at a given time.

4.5.6.5 System should generate alerts/notices/report on reaching the Alert limits & Maximum limits.

4.6 Temporary Overdraft (TOD) in Current and Savings Accounts (CASA)

4.6.1 Ability to grant TOD in CASA accounts, by competent user levels only.

4.6.2 Ability to allow/prohibit TOD during transactions, as per scheme code.

4.6.3 It is a contra entry for the debit balances i.e., TODs arise in CASA accounts

4.6.4 It will be shown both under assets and liabilities

4.6.5 Provision to parameterize interest rate, and to auto recovery of applicable Interest periodically / during account closure / account regularization.

4.6.6 Generation of required reports on outstanding TODs / TODs granted / regularized / age-wise.

4.7 Term Deposits

4.7.1 The system should be capable of defining various deposit schemes including Reinvestment deposits, Fixed Deposits, Cash Certificates, Overdue deposits, Tax Saver Deposits, Recurring Deposits etc. The system should support all the schemes as listed in Annexure 9.

4.7.2 The system should allow to open Term Deposit accounts for all types of persons like individuals, Joint accounts, Firms, HUF, Companies, Corporations, Societies or associations, Trust, Executors and administrators, Govt/Semi Govt Departments, Local bodies etc. The system should also provide for means to identify each account based on above constitution/type for MIS purposes.

4.7.3 The system should support basic features as per the Bank’s requirements such as

Account maintenance Transaction maintenance

4.7.4 Term deposit accounts may be accepted in Cash or Transfer

4.7.5 Periodic interest calculation and application

4.7.6 Closure of account before maturity (with or without penalty) with slabs for individuals and corporate with time limit or on maturity

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4.7.7 Premature cancellation charges are waived if the deposit is closed for better rate of interest. If the renewed deposit is closed prematurely, earlier waived penalty to be recovered. This is applicable for all Term Deposits for that premature cancellation is allowed.

4.7.8 Splitting of the deposit during the course of deposit/claim settlement

4.7.9 Deposit receipt printing

4.7.10 Due date notice printing

4.7.11 Auto renewal facility for identical/non identical periods with or without interest

4.7.12 TDS application on interest as per IT act

4.7.13 Nomination facility should be available

4.7.14 Claims and deceased deposit payment

4.7.15 Interest rates calculation procedures for Deposit Interest

4.7.16 In case of Reinvestment and recurring deposits interest will be calculated & credited to the account every half-year (compounding quarterly).

4.7.17In case of Fixed Deposits, interest will be calculated as per the frequency specified while opening the deposit (M/Q/H/Y/F).

4.7.18 For payment of interest on Term deposits Bank follows Ground Rules and Code of Ethics of IBA (GRACE) i.e., on deposits repayable in less than three months Or where the terminal quarter is incomplete, interest would be paid for the actual number of days on the basis of 365 days in a year.

4.7.19 System should be capable of doing the following in respect of renewal of overdue term deposits

4.7.19.1 If the overdue term deposit is renewed after 14 days of its maturity, system should capture interest rate prevailing as on the date of renewing the deposit or the rate prevailing as on the date of maturity, whichever is lower. If the overdue term deposit is renewed before 14 days from the date of its maturity , system should capture the interest rate as on the date of maturity.

4.7.20 The system should be capable of generating reports such as deposit ledger, Accounts closed /opened in a given period/scheme/area etc., report on interest rates, TDS recovered, Interest credited/TDS deducted – party wise/branch wise , deposits under auto renewal etc.

4.7.21 System should support checking the balance available in PHINQ.

4.7.22 System should be able to generate IPD debit balances report.

4.7.23 System should be able to mask linked operative account field, maturity value etc. in HOAACTD/ACM as required by the bank.

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4.7.24 System should check with Maximum Interest value set in GSPM while giving preferential interest through HOAACTD/INTTM menus. Also should check with Maximum period and Maximum amount values set in GSPM while opening the accounts through HOAACTD menu.

4.7.25 System should block Transaction Tab in HOAACTD menu.

4.7.26 System should not allow in TM menu, cash entry more than 49999 in entry level itself.

4.7.27 System should block ACXFRSOL menu for TDA accounts

4.7.28 System should not allow opening new TD acoounts in 12070/overdue GL sub-head code in HOAACTD menu.

4.7.29 System should block opening of TD accounts through OACC menu.

4.7.30 System should block FD account in debit leg of Standing Instructions menu (SIM)

4.7.31 System should not mask penalty flag in CAAC menu

4.7.32 System should support TD receipt printing for Tax saver schemes.

4.7.33 System should check in INTTM not to exceed the Max. interest defined in GSPM while giving preferential rate through INTTM.

4.7.34 System should auto populate renewal interest table code in TDREN menu.

Overdue deposits

4.7.35 A term deposit, which is neither renewed nor paid on the due date, is to be transferred together with interest to this account.

4.7.36 No interest is payable on overdue deposits except under certain circumstances as defined by bank / RBI.

4.7.37 Full particulars of the term deposits like number, name of the depositor etc should be noted against the overdue deposit.

4.7.38 The system should be capable of making interest provisioning requirements thru system (monthly with facility to reverse thru system).

Fixed Deposits

4.7.39 A fixed amount can be deposited for a specified period.

4.7.40 Minimum amount of deposit is Rs.100 with no ceiling on maximum amount.

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4.7.41 Minimum period of deposit is 15 days and maximum period is 120 months with automatic renewal facility and facility for premature cancellation.

4.7.42 Standing instructions can be taken for payment of interest.

4.7.43 Loan facility is available upto 90% of the deposit amount.

4.7.44 Deposits can be made by individuals, HUF, Proprietary concerns, partnership firms, Limited Companies, Registered bodies, trusts, Government / Quasi Government departments.

4.7.45 TDS is applicable on interest as per IT Act.

4.7.46 Nomination facility is available

4.7.47 Rate of interest as applicable for different maturities ruling from time to time with 0.50% extra payable to senior citizens and 1% extra for staff members

Reinvestment Deposits

4.7.48 A reinvestment plan, where interest will be added to the deposit amount half yearly, on quarterly compounding basis.

4.7.49 Minimum amount of deposit is Rs.100 with no ceiling on maximum amount.

4.7.50 Minimum period of deposit is 6 months and maximum period is 120 months and facility for premature cancellation.

4.7.51 Rate of interest as applicable for different maturities ruling from time to time with 0.50% extra payable to senior citizens and 1% extra for staff members.

4.7.52 Application of interest is done on a half yearly , on quarterly compounding basis

4.7.53 Loan facility is available upto 90% of the accrued amount of deposit.

4.7.54 Deposits can be made by individuals, HUF, Proprietary concerns, partnership firms, Limited Companies, Registered bodies, trusts, Government / Quasi Government departments.

4.7.55 TDS is applicable on interest as per IT Act.


Tax Saver Deposits

4.7.57 A term deposit account from Income tax assesses to get exemption under section 80c of IT Act.

4.7.58 Deposit can be in the form of Fixed deposits with monthly / quarterly interest payment or Reinvestment Deposits

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4.7.59 Can be opened by Individuals or HUF, Income tax assesses with permanent account number either singly or jointly.

4.7.60 In case of joint account, exemption under Sec 80C shall be available only to the 1st holder of the deposit.

4.7.61 To obtain the declaration from the depositor stating that the deposit amount under such scheme with various banks does not exceed Rs.100000/- under Sec 80c of IT act.

4.7.62 It is for a fixed period of 5 years.

4.7.63 Minimum amount of deposit is Rs.100/- or multiples thereof with a maximum of Rs.100000/-

4.7.64 Rate of interest as applicable for different maturities ruling from time to time with 0.50% extra payable to senior citizens and 1% extra for staff members.

4.7.65 No deposit loan to be allowed or no lien to any other loan.

4.7.66 No provision for premature cancellation.

4.7.67 No nomination shall be obtained in case of minor.

Cash Certificates

4.7.68 Odd amounts can be deposited (Issue price) for a fixed period to receive round amount (face value) on due date.

4.7.69 Deposit amount is accepted for face value of Rs.100 or Rs.1000 or multiples thereof

4.7.70 All other features as applicable to Reinvestment Deposits.

Rate of interest as applicable for different maturities ruling from time to time with 0.50% extra payable to senior citizens.

Recurring Deposits

4.7.71 An affordable amount can be deposited monthly to receive a lump sum amount together with interest on due date.

4.7.72 Accounts can be opened by individuals (singly / jointly), clubs, proprietary concerns, partnership firms, companies associations, education institutions and other registered bodies for genuine saving purpose.

4.7.73 Application of interest is done on a half yearly, on quarterly compounding basis

4.7.74 Minimum period of deposit is 6 month and in multiples of three months with a maximum period of 120 months with facility for premature cancellation.

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4.7.75 Accounts are accepted in monthly installments with a minimum sum of Rs.5/- per month and multiples thereof.

4.7.76 Loan facility is available up to 90% of the deposit and interest accrued on it.


4.7.78 No TDS on recurring deposits as per prevailing Income Tax rules

4.7.79 Facility to accept the amount of cash deposited in multiple of installment amount. Facility to restrict cash deposit in matured accounts.

4.8 Advances

4.8.1 The system should have the ability to parameterize different loan products (together with their applicability to different customer categories) including, but not limited to the following: Loans against deposits, Loans against KVPs, NSCs LIC policies etc., Loans against shares and mutual funds, Loan against Gold (Non- Agricultural), Clean Loans, Loans against merchandise etc. as given in Annexure 9.

4.8.2 The system should have the ability to define retail/ corporate loans based on GLs, threshold limits, constitution or a combination of any other parameters.

4.8.3 The system should have the capability define various product types under general ledgers and to classify broadly into, including but not limited to the following: Demand Loans, Overdrafts, Cash Credits, Term Loans and Bills

4.8.4 The system should have ability to maintain a list of approved security types (i.e. land and buildings, house sites, plant and machinery, jeweles, deposits, NSCs, KVP, shares (fully paid/ partly paid details, physical/demat etc.), LIC policies, stocks, book debts etc. The system should also have ability to link a single security to multiple loans/ limits, fully/ partially and multiple securities to a single account

4.8.5 Each account should be linked to a party master.

4.8.6 The system should have the ability to specify the category

GL level, Tenure of the loan (e.g. demand/ term loan/ working capital term loan) and also to manually

classify the loans as desired by the bank Repayment period (short term/medium term/long term) Department code Industry code BSR codes (main codes and sub codes) Sectors and sub-sectors Education (Inland/Abroad) Exports/ tiny/ micro enterprises/ Small Scale Service and Business Enterprises (SSSBE)

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Rural/ semi urban/ urban/ metro, based on the place of construction (in case of housing loans) Direct/ Indirect finance

4.8.7 The system should have the ability to capture all data required by the bank for the particular type of loan. The system should also have the capability of allowing the user to define additional fields other than those available, with ease for additional data capturing.

4.8.8 The system should provide facility to define a master set of loan documents to be received from customer at pre-sanction. The standard document set should be capable of being modified as specific to each account. The system be able to capture the details of these documents once received (e.g. document date and validity period, date of receipt etc) and to generate alerts after ‘x’ days of opening the account yet not receiving relevant documents.

4.8.9 The system should provide facility to create, modify, delete and print masters related to Facilities, Purpose, BSR codes, Scheme codes, DSB, Loan code master, Industry code, Sanctioning authority, Gold codes, Asset codes, Charge codes, Classification of advances. Limit type, Party Grading Master.

4.8.10 The following requirements are related to Limit Maintenance

Ability to create/ modify/ cancel group -wise/ party -wise limit structure for funded/ non-funded limits to define main limit, sub limit or break limit

Ability to define various limit types e.g. bill limit, CBP limit etc. Ability to maintain multiple limits (including adhoc limits) for a single customer with different

expiry dates Ability to define the working capital limits as fund based/ non-fund based and also classify

them as regular, single, adhoc, peak/ non-peak etc.

4.8.11 The following requirements are related to Interest Application

Ability to define standard interest rate types like BMPLR, STPLR, LIBOR, SUB-PLR, SBIRATE, G-Sec rate etc.

Facility to centrally define a minimum interest rate, so that the higher of the customer interest rate and the bank’s Prime Lending Rate/ MIBOR/ LIBOR etc. is applied automatically by the system

Ability to aggregate accounts, as required by the bank, for interest calculation purposes (netting of accounts). Ability to link loan/ advance accounts to credit balances in operative accounts of the customer and charge interest after adjusting the balance

Ability to incorporate 'reset' clause for charging interest at account level Ability to define and charge interest based on fixed, variable and fixed variable Ability to centrally define base interest rates like BMPLR (Bench Mark Prime Lending Rate),

interest spreads with both + and – values, product -wise, tenure-based, rating-based or sector-based and define additional rate, term premia, interest tax, service tax etc.

Ability to define ‘Overdue’ interest percentage and the conditions for the reckoning of overdues for different type of loans for automatic calculation of OD interest as per the set parameters and ability not to charge ‘overdue’ interest during holiday/ gestation period

Ability to change interest method/ rate for an account/ customer at branch level Ability to modify interest calculation mode from simple to compound and vice versa for the

periods defined by the bank

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Ability to parameterize the frequency of compounding interest Provision for retrospective/ prospective change in rates of interest to accounts/ schemes/

customers/ GLs and automatic recalculation and recovery/ credit of differential interest at the time of application of interest or closure of account

Ability to calculate/ recalculate interest, based on ‘value date’ of transactions Ability to charge simple/ compound interest, based on the crop seasons defined in case of

agriculture/ crop loans Ability to maintain interest history at account level/ scheme level/ customer level/ GL level Ability to maintain zero interest accounts (e.g. subsidy) Ability to generate interest calculation report for a previous date (for any given rate) for the

purpose of verification by inspectors/ auditors (without considering the interest actually debited during the period)

Ability to capture the ratings given by different agencies and the interest rates applicable. Also, ability to fix the rating model adopted for the purpose of interest application at customer level/ account level.

Ability to fix overdue interest exemption limits like 5,000/- for all loans and Rs.25,000/- for priority sector loans

Ability to give advance 'alert' at pre-defined period in case of loans sanctioned with 'reset' clause of interest.

4.8.12 The following requirements are related to EMI calculation and application

Provision for EMI calculation on the limit sanctioned/ amount disbursed, based on frequency and number of installments, loan amount, interest rate and age of the borrower. There should be a provision to round-off the EMI upto certain tolerance limits

Ability to specify more than one EMI schedule for a loan (step-up or step-down by a specified percentage or fixed amount)

Ability to define multiple repayment schedule, holiday/ gestation period at account level with a facility to support bullet payment/ balloon payment and progressive installments

To recalculate EMI on the following conditions: Revision of rate, on capitalization of interest/charges like liability insurance, Restructuring, Reschedulement / Rephasement

Ability to prevent modification of the EMI amount calculated by the system, beyond certain specified tolerance limits

Ability of the system to validate the aggregated and modified fixed installment amounts against the total loan amount, in case of modification of installments of non-EMI loans

Ability to automatically recompute the EMI in the event of modifications to interest rates. Also, to generate a letter to the customer, notifying him/ her of the modified rate and EMI.

4.8.13 The system should support the following features related to interest subvention

Ability to capture subvention parameters, amount upto which accounts are eligible for subvention, Kharif and Rabi seasons (in terms of from and to dates), subvention applicable up to dates separately for Kharif and Rabi, rate of interest chargeable to party and rate at which claim is to be made on RBI, details of GL numbers and account types

Ability to charge original applicable rate of interest after expiry of the subvention period of the scheme or on due date of the loan, whichever is earlier

Ability to calculate and post interest periodically (at present quarterly) at subvented rates on all eligible accounts and at usual rates on the remaining accounts

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Ability of the account closing program to calculate interest at subvented rate on eligible accounts

Ability to calculate claim on a quarterly basis/suggested intervals and submit to RBI as per the proforma

Provision for recalculation and posting of interest (debit or credit) due to revision/ change of interest rate with value date

Ability to permit modifications to default interest rates (parameterized for the specific scheme) only on approval by manager/ appropriate authority (parameterisable).

All such accounts which are otherwise eligible and for which net interest rate falls below the interest rate applicable for subvention should be reported in the ‘Claim report’.

4.8.14 The system should have provision for re-schedulement/ rephasement of loans with or without overdues / interest (to be parameterized).

4.8.15 The system should have provision to restructure loans under CDR/ bank’s compromise policy/ Government directions (e.g. principal and Interest separately with or without overdues or as defined by the bank/ conversion of agriculture loans).

4.8.16 The system should have the ability to print loan pass books in case of agricultural advances, weaker section advances, advances against gold ornaments or as defined by the bank. Provision to print account statement for loan accounts for a given period duly mentioning the rate of interest during the different periods.

4.8.17 The system should have ability to maintain list of borrowers, guarantors, co-obligants, sureties who are blacklisted (i.e. chronic defaulters, willful defaulters, undesirable parties, RBI defaulters list, internal caution list, CIBIL, ECGC-SAL, sensitive commodities etc.) and generate reports as required and support interface with external databases/ upload data/ information received from IBA/ RBI/ ECGC/ CIBIL/ Directorate General of Foreign Trade (DGFT) etc.

4.8.18 The system should have the capacity to define and collect Processing Charges, Upfront Charges, Pre-payment Charges, Other periodic charges, such as administrative charges (including at the time of closure), out of pocket expenses, etc. These charges have to be levied to the debit of the Loan / Advances account. System should also have provision to exempt certain charges at scheme level and also at account level.

4.8.19 The system should have ability to capture the details of subsidy received from agencies and to link them to accounts, to place subsidy amount in the appropriate account e.g. sundry creditors/ sundry suspense as defined by the bank and to adjust the subsidy to loan accounts as defined by the bank and for recalculation of interest

4.8.20 The system should have the ability to capture the details of refinance, and process the same, as defined by the RRBs and to know status of refinance accounts for monitoring and review.

4.8.21 The system should have ability to define margin for various types of securities at individual security level and to define products/ schemes where margin amounts need to be collected from the customer, before disbursal of the loan amount. The margin amounts to be collected may be flat amounts, Percentage, Tiered slab-wise amounts/percentages etc.

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4.8.22 The system should be capable of automatically calculating and displaying the applicable margin amount as per the loan product/ scheme selected

4.8.23 The system should have provision to classify NPA accounts as per IRAC statements and for identification of accounts which were categorized as NPA in any particular period/quarter. The system should also have the ability to mark NPA manually at customer/ account level with parameterized level of authorization.

4.8.24 The system should have facility to calculate provision based on the availability of security (e.g. for sub standard assets)

4.8.25 Facility to capture unrecovered interest and installment separately

4.8.26 Provision for automatic reversal of outstanding interest (from the date of NPA) on the date of marking an account as NPA

4.8.27 Provision for auto upgradation/ down gradation of assets based on the recoveries/ age of NPAs which should be definable

4.8.28 Ability of the system to maintain the history of NPAs with date and code

4.8.29 Ability to define exemption categories of loans from the purview of NPA (e.g. deposit loans)

4.8.30 Ability to generate details of closed NPA accounts period -wise, range –wise

4.8.31 The system should have facility to support maintenance of details for suit-filed accounts [i.e. original account number, date of filing suit, suit amount, nature of suit (money/ mortgage etc) claim/ refund details, decree details, petition details, advocate details, legal fee paid and other relevant details and to classify these accounts as - Under Sarfaesi / DRT/ other suit-filed/ decreed/ restructured accounts etc.

4.8.32 The system should have provision for transfer of accounts/ bills from regular to suit, and to maintain the link between the original and suit account/ bill with history within or outside the branch.

4.8.33 The system should support reconciliation mechanism for interest booking on loans.

4.8.34 Facility for debiting interest on loan accounts periodically but reporting the same as due on a predefined future date.

4.8.35 Migration of securities to loans and ODCC a/cs.

4.8.36 Migration of correct penal interest date for ODCC accounts.

4.8.37 Automatic switchover of charging of interest from simple to compound and compound to simple. .

4.8.38 Simplified menus for opening of accounts under gold loans, deposit loans, agriculture cash credits and SHGs.

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4.8.39 System should support transfer of accounts between SOLs.

4.8.40 System should support subsidy loans.

4.8.41 System should generate interest rate history report on loans and advances.

4.8.42 The system should be able to support “Technical Write-off of loan accounts.

4.8.43 The system should be able to support liquidation loans under “Compromise”.

4.8.44 The system should be able to support “Personal Accident Scheme”

4.8.45 The system should be able to support “Comprehensive Insurance Scheme”.

4.8.46 The system should support ‘Rythu Mithra Groups’,

4.8.47 The system should support ‘Joint Liability Groups’,

4.8.48 The system should support Kisan Credit Cards.

4.8.49 The system should support loan installments in EMI/EQI/EHI.

4.8.50 The system should be able to to give interest reimbursement for the loans and Govt. sponsored programmes.

4.8.51 The system should be able to charge interest on loans for net of backend subsidiary, and to calculate OD interest on the loans based on net of backend subsidiary.

4.9 Inland Bills.

4.9.1 The system should be able to handle purchase, discount, negotiation, re-discount and collection of instruments including inward / outward bills, cheques (both inland & foreign), demand drafts, warrants, travelers cheques, demand bills, usance bills etc. for various categories of customers such as individual customer, group, corporate customer, staff member etc.

4.9.2 The system should be able to handle all types of bill operations like lodge, purchase, realize (full or part), dishonor, release margin, recovery, transfer from collection to purchase, allowing rebates, free delivery, etc

4.9.3 The system must have provision to categorize Bills under various sub categories and process transactions accordingly. (e.g.: Clean Bills Purchased (CBP) /Instant Clean Bills Purchased (ICBP) /Documentary Bills Purchased (DBP) / Documentary Usance Bills Discounted (DUBD) /Clean Usance Bills Discounted (CUBD /Supply Bills/ Foreign Clean Bills Purchased (FCBP) etc.

4.9.4 The system should be able to link bills to relevant LCs so as to keep track of actual amount available under that LC and enable generating LC liability report party wise, register wise, etc.

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4.9.5 The system should be able to handle devolvement of bills where the Bank reimburses to negotiating bank without receipt of payment from the customer

4.9.6 The system should be able to define different methods for calculation of commission, Interest , other charges and service tax. These could be based on credit rating & usance periods, and to handle recovery of interest & commission upfront, back ended, periodic, on actual outstanding.

4.9.7 The system should be able to compute and charge commission, interest , other charges and service tax thereon as applicable as per the circulars in force. The system should have the ability to recover such charges at a later date from the customer's account in the event that the account does not have sufficient balance.

4.9.8 The system should be able to generate a report of advance interest collected on bills discounted, for making quarterly provisions, and automatically make a provision of such advance interest in Sundry Suspense - Provisions, at the end of every quarter.

4.9.9 The system should be able to charge preferential /overdue interest as per the policy of the Bank, & ability to pay interest on delayed collection of cheques/bills for any period. In case of early realization, dues to the customer should be credited to their account

4.9.10 The system should be able to maintain regular /adhoc limits for funded, non-funded facilities in combination with other advances of the customer. Be able to verify the limits available before accepting the application for purchase of instruments for processing and give appropriate messages/ error messages. To restrict instant clean bills purchased taking into account all outstanding purchases made for that customer.

4.9.11 The system should be able to maintain securities as collaterals with regard to bills (e.g.: supply bills/ CUBDs backed by collateral securities, bills purchased against LCs etc.) & to link bills purchased to the collateral securities of customers

4.9.12 The system should allow the user to record noting and protesting of dishonored bills.

4.9.13 The system should be able to maintain bills identified as NPA- System should support further operations including but not limited to IRAC Reporting, Recovery, Compromise Write-Off, Technical Write-off, etc. System of maintaining NPA for Bills to be in line with the advances NPA module to ensure seamless maintenance & reporting.

4.9.14 The system should be able to generate covering letters with all details of instruments sent for collection along with the instructions for collection for Bank & intimation letters to drawee for retiring bills in respect of inward bills. Also be able to generate payment advice / realization advice on realization/ retiring of bills/cheques to the drawer of bill.

4.9.15 The system should be able to generate standard reports of Outstanding liabilities as on any date, income & expenditure, margin details & business reports for any period based on Customer, duedate, beneficiary, sector.

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4.9.16 The system should be able to generate report for overdue bills party-wise & an age-wise analysis of overdue/ outstanding bills as on current business date / any date. Generate reminders/ fate enquiries of bills.

4.9.17 The system should be able to generate reports for fund & non-fund advances sector-wise (IFD, SSI, ME, Ag, etc), Sub-sector wise (Sensitive sectors like Capital Markets, Real Estate etc) etc.

4.9.18 The system should be able to generate Report on Bills devolved, instances of devolvement, extent of devolvement, date of adjustment.

4.9.19 The system should be able to generate Charges/Interest Collected Report - details of normal, penal interest - bill wise, party wise, register/sub-register wise.

4.9.20 The system should be able to handle electronic upload of data from corporate customers to whom the Bank has extended such facilities.

4.10 Bank Guarantees.

4.10.1 The system should be able to handle outward /inward guarantees and be able to integrate the Guarantee module with the other related modules such as limit maintenance, security maintenance, margin maintenance, commission maintenance, etc. Transactions exceeding limits should be marked as exceptional transactions.

4.10.2 The system should be able to handle BG issuance taking into account the available balance in the total BG/LC limits, ad hoc limits, Interchangeable LC & BG limits of the party.

4.10.3 The system should be able to handle different types of bank guarantees including performance guarantee, financial guarantee, bid bond guarantee, advance payment guarantee, deferred payment guarantee, third party guarantees on behalf of joint ventures etc.

4.10.4 The system should be able to handle deferred payment guarantees and process all transactions listed under guarantees, LCs, co-acceptance limits and bills under LCs.

4.10.5 The system should be able to create installment transaction in respect of Deferred Payment Guarantees on the due date or on previous/ next working day basing on user defined parameters.

4.10.6 The system should be able to perform annual review of DPGs of the constituents as per Format, with a Memo field to note the review remarks.

4.10.7 The system should be able to classify bank guarantees into secured and unsecured guarantees.

4.10.8 The system should be able to create and maintain a master record for various charges associated with guarantees as per the circular in force. The user should have the flexibility to choose preferential charges associated with each guarantee.

4.10.9 The system should allow to define whether commission is to be collected in full or in installments spread out over a user defined period.

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4.10.10 The system should be able to handle amendment, cancellation and invocation of bank guarantees (e.g.: amount, extension of validity etc.) and compute and recover charges, commission, margins etc as per the Bank's policy. The system should also facilitate generation of contra entries in these events.

4.10.11 The system should be able to release the margin or lien on closure of bank guarantee.

4.10.12 The system should be able to handle invocation of bank guarantees. The system should facilitate verification of due date and restrictive periods prior to processing invocation of bank guarantees.

4.10.13 The system should be able to process invocation of BGs as per the payment instructions and generate the necessary accounting entries.

4.10.14 The system should allow the user to record restraint/ court order restraining bank from making payment on invoked guarantee and allowing payment only after the order is revoked. System should alert the user if such records are attached to the bank guarantee.

4.10.15 The system should be able to generate due date notices, claim expiry letters on due date and alert the user to forward the same to the beneficiary to return the original guarantee.

4.10.16 The system should be able to generate resume on the BGs issued/ outstanding/ commission earned etc customer-wise, branch-wise, purpose & sector-wise etc. for a particular date or for a period.

4.10.17 The system should be able to generate standard reports of Outstanding liabilities as on any date, income & expenditure, margin details & business reports for any period based on Customer, due date, beneficiary, purpose, sector.

4.10.18 The system should be able to report exposure under non-fund based BGs activity wise, sector wise (industrial finance, SSI, ME, AG etc.), sub-sector wise (capital markets, real estate etc.) etc.

4.11 Branch Side Operations – Cash module.

4.11.1 The system should have the ability to parameterize GL for cash transactions. All cash transactions should be debited/ credited to this GL account.

4.11.2 The system should maintain retention limit branch -wise/ cashier –wise.

4.11.3 The system should have the ability to designate users as cashiers/ tellers/ Single window users/ joint custodians and allow only the designated cashiers/ tellers/ single window users to access cash options on a daily basis at each branch.

4.11.4 The system should have the ability to define functions/ operations, which can be performed by each officer/ cashier/ teller/ single window user.

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4.11.5 The system should be capable of operating in local currency (Indian Rupee). Presently operations in Foreign Currency are not envisaged. If such requirement arises in future such features in Finacle may be used.

4.11.6 The system should support receipt of cash by the cashier from all account types permitted by the bank. The system should also support payment of cash for authorized transactions.

4.11.7 An alert should be raised where the cash receipt is beyond the threshold limit fixed (as per KYC Norms) for an account.

4.11.8 The system should allow the teller, cashier, head cashier to enter cash received from the vault, tellers/ head cashiers etc.

4.11.9 The system should disallow closing of cash if any amount is outstanding with any of the cashiers, any cash receipts are pending for authorization or any cash payments are pending for payment

4.11.10 The system should be able to record the details (serial numbers) of currency notes which are withdrawn by RBI from circulation and which are reported by RBI to be forged/ fake.

4.11.11 The system should provide the facility to record PAN number for amounts received in excess of the parameterized amount with structural validations of PAN No.

4.11.12 The system should provide various reports like cashier’s Receipt scroll, Payment scroll, consolidated reports of cash etc.

4.12 Branch side operations - Clearing module.

4.12.1 The system should support outward clearing, inward clearing, cheque return accounting and basic reports.

4.12.2 The Outward / inward clearings should support various categories of clearings like –MICR clearing, Non-MICR clearing, Magnetic Media Based Clearing, Domestic, High Value, Return clearing, National clearing, Electronic clearing Service and any other type of clearing as per RBI norms from time to time.

4.12.3 The system should support different types of Masters like MICR codes for Bank, Branch and City, Instrument types, cheque return reasons

4.12.4 The system should support levy of charges such as clearing charges like cheque returning, penalty charges for the receipt of instruments received after a predefined cut-off time, clearing returns, advance release, speed clearing charges, ABB charges. System should also support the charging of service tax as per prescribed norms from time to time. They may be made to go through the parameter table for easy handling in future.

4.12.5 The system should provide for opening and closing of any number of batches (with unique batch numbers) in each category of clearing.

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4.12.6 The system should facilitate the marking of Outward Clearing Returns through Inward Clearing and automatic entry of Inward Clearing Returns in Outward Clearing Returns Batch.

4.12.7 The system should be able to generate various reports like bank-wise and branch-wise statements, different clearing registers, cheque return memo, cheque refer registers etc.

4.12.8 System should support withholding release of any instrument, instrument wise, bank wise, branch wise for any future date.

4.13 Branch side operations – Remittances module

4.13.1 The system should support various remittance products such as Demand Drafts(DD) / Banker’s Cheques(BC), Pay Orders (PO), Agency drafts (AD), Electronic funds transfers (EFT).

4.13.2 The system should support the following transactions with respect to the above remittance products - Issue (including mass issue), Payment (including mass payment) , stop payment, cancellation, revalidation and duplicate issue, stop payment revocation etc.

4.13.3 The system should allow prescribing minimum and maximum amounts, validity period, commission and exchange and other charges like cancellation, revalidation, duplicate charges etc.

4.13.4 The system should support maintenance of masters like Bank lists, Branch lists, Branch code No, Agency Bank codes, Agency Bank branches, and Branch-wise or Branch group-wise limits for issue/ pay/ honour of remittances.

4.13.5 The system should support facility of printing on pre-printed stationery. System should also support the picking of the next series of inventory number, as per user’s choice.

4.13.6 The system should generate Register/ report/ query for specified DDs/ BC/POs/ ADs/ TTs/ GCs Issued, Paid, Cancelled, Revalidated, Duplicate issued, destroyed, payment stopped, as on any date or for a given period for a given scheme code or account number.

4.14 General Requirements

Access Control Requirements:

4.14.1 The system should provide the following facilities regarding access control

4.14.2 Support Maker Checker Facility (multiple levels) based on category of staff, Product type, Account type, Transaction Type/amount, Effect of transaction (like a/c becoming TOD etc), Status of the Account (inoperative, dormant a/c). Ability to enforce appropriate authorization using maker checker concept for setting up User level / ID / account level passing limits

4.14.3 Ability to parameterize events as exceptions and map with GLs / sub GLs for granting authorization powers

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4.14.4 Provision to update the data only after verification by checker, for all financial / non-financial transactions

4.14.5 Every activity / transaction must be tagged with the corresponding operator and all levels of authorizations by indicating the staff number / user ID of all the employees who "handle" this transaction along with the time of handling / authorization and generate relevant reports

4.14.6 Ability to provide appropriate user rights management features, i.e. no user other than the System Administrator to have command line / any other means of accessing UNIX Shell or database directly

4.14.7 Ability to lock account in case of repeated entry of wrong id-password combination (parameterisable) and ability to automatically lock User ID and activate password protected screen savers when logged in session is inactive for more than the predefined period (parameterisable) of time, and maintain a uniform screen saver throughout the organization

4.14.8 Ability to enforce maker checker concept for reset of password and the DBA should provide a dummy Password valid for the day only, which to be changed on first log in by the user. The system should capture such details in an exception report

4.14.9 Ability to provide menu / sub menu / screen / field / report which are restricted on the basis of individual user IDs access level and Ability to define user access (on transactions) to be based on the following options including but not limited to: Input, Hold, Modify, Delete, Authorize, Reverse, View / Display, Print etc.

4.14.10 Ability to restrict access to change User Level Master parameters to certain user groups and with appropriate authorization. System should support all activities related to user profile maintenance from central level and certain activities from branch level with maker checker provision. System should not allow more than one user ID for any employee.

4.14.11 Ability to disable employees' User ID who are on leave / not on computer duty / left the Bank, by duly validating with the Attendance register and with appropriate authorization

4.14.12 Ability to provide a separate pre-set Menu option against each User Level defined within the system. Ability of the system to create new menu option for a new User level created. This restricts access of users to only authorized menu options

4.14.13 Ability to define financial ceilings explicitly (for entry and authorization) for each User level / ID / group and ability to grant exception passing rights at user ID level in addition to being restricted at the menu level

4.14.14 Ability to link login access ID with each user's unique staff number allotted by the Bank and Ability to link the user's designation with the work class allocated in the CBS. The work class allocation can be scaled downwards or upwards with adequate authentication duly capturing the letter reference, date of effect and reasons for the same. History of previous work class etc. to be maintained

4.14.15 Facility to control cash / clearing / transfer limit for each user with appropriate authorization. This control should be at user level / work class level.

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4.14.16 Provision to grant read and write permission for each module, scheme, GL subhead etc. at user / user group / user level and menu wise with appropriate authorization and Ability to restrict access rights of Auditors to read only

4.14.17 Ability to generate mandatory log for all the activities carried out by highly powerful users like System Administrator / DBA and for all activities at prompt level by any user

4.14.18 Provision for user to be limited to a single session on the network i.e. user cannot log-in concurrently from more than one terminal. Exceptions to be allowed based upon parameter (non availability of staff) and provision to limit this exception to certain activities (i.e. reports / queries) and with appropriate authorization

4.14.19 Ability to query / generate the following reports / logs as on a particular date / range of dates including but not limited to: User accounts created, Access rights granted, Current as on users etc

4.14.20 Ability to maintain a serial for each Mandatory log

Application Requirements

4.14.21 Ability to support branch code of upto 4 digits and Up to 999 users per branch and up to 99,99,999 customers per branch

4.14.22 Ability to support definition and classification of products under a multi-level hierarchy under authorization from highest level of user

4.14.23 Ability to define workflow and also the levels of authorization for each transaction type under authorization from highest level of user

4.14.24 Ability to exclude any / some accounts / group of accounts from interest / charges etc. under appropriate authorization

4.14.25 Ability to support multiple currencies and ability to round up / round down the amount to the nearest user-defined unit for each individual currency

4.14.26 Ability to configure mandatory fields for master and transaction within each module, ensuring their entry before the transaction / master entry is ‘committed’ and ability to highlight mandatory fields in a different color

4.14.27 Ability to support calendar definition (and modification) for each location / branch capturing weekly holidays, public holidays, non-business working day, unscheduled holidays for each front office separately

4.14.28 Ability to restrict access for modification prior to authorization to the maker. In exceptional cases, permission / access for modification may be given to another user by the Branch head / Data Centre when the maker is not available. In such case the userID of the modifier to be captured in the system

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4.14.29 Provision for the capability to have batch update for all modules in the proposed solution, and Provision to parameterize the scheduling of any batch job

4.14.30 Ability to define and process tasks for : Start of Day, End of Day, Start of week, End of week, Start of Month, End of Month, Start of quarter, End of Quarter, Start of year and End of Year and Ability to permit EOD processing only after ensuring that: All transactions are authorized and Entries / modifications in masters / parameters etc are authorized

4.14.31 Ability to store and retrieve images of signatures, photographs, Physical document images and linking them to customer ID and / or account number, for retrieval

4.14.32 Ability to provide for value dated transactions, which result in a change in the end-of-day account balance and / or targeted to an account linked to a tiered interest rate structure. To be flagged as ‘exceptions’ and processed via the end-of-day interest

4.14.33 Ability to upload / download data to the core Banking system received in any electronic format (i.e. flat files, FTP, excel, dbf, PDF and direct download from internet sites, media uploads etc.)

4.14.34 Ability to download data in prescribed formats, (i.e. RBI Data for R Return, ALM Data, Annual return for TDS , Interest on deposits and fee / rents paid, annual return on Cash deposits in SB accounts etc.)

4.14.35 Ability to archive database on user definable parameter (e.g. from and to dates for transactions, closed accounts, accounts with zero balances) and provide a parameterized process for purging various types of data which is archived

4.14.36 Ability to allow for user defined frequency for backups for the following: Online, manual, automated / Database, Programs, Systems etc

Exceptional Transactions Maintenance

4.14.37 Ability to define conditions for transactions to be treated as exceptional transactions

4.14.38 Ability to capture override of a given rule / parameter in an exception report which is printed automatically as part of EOD

4.14.39 Ability to generate exception reports for a given period for a given account and given type of transaction relating to the selected period and ability to generate exception reports on a daily basis as part of the day -end activity and print / display exception reports for any defined date or range of dates, sanctioning authority -wise.

4.14.40 Ability to display the following fields in the exceptional transaction report, but not limited to: Date and Time Stamp, Transaction ID, Operator ID, Transaction details (before and after changes), Referred by ID, Authorizing personnel etc

Product Accounting

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4.14.41 Ability to configure / define accounting rules for individual product and generate accounting entries that will be passed to the GL module

4.14.42 Ability to block GLs and sub GLs on closure / discontinuation of schemes / GL / sub GL accounts to prevent passing of any transactions to the same and Provision to disallow subsequent reallocation of blocked GLs / sub GLs / schemes

4.14.43 Ability to automatically generate accounting entries, online at the time of data entry or batch update itself, based on the pre-defined rules

4.14.44 Ability to support accounting for the following but not limited to: multiple business units, multiple products, multiple cost-centers, and multiple profit centers. Multiple currencies etc

4.14.45 Ability of the system to support multiple currencies for all accounting operations and generate the Day Book and Trial Balance for Indian Rupee and Foreign Currency Trial Balance for Foreign Currency

4.15 Nominal Heads

4.15.1 The system should maintain GL codes for in following Nominal Heads including but not limited to - Sundry Debtors, Sundry Creditors, Sundry Suspense, Credit Receivable and Items in Transit etc. The system should also have the ability to define whether parameters like cash/transfer/clearing is allowed for the GL head

4.15.2 The system should be able to support creating any number of sub-codes under each GL. The system must also have the ability to accept either partial reversals or one to one reversals based on the parameter for the particular sub code

4.15.3 The system should support integration with other modules like clearing, ATM etc.

4.15.4 The system should generate a unique serial/item number for each of the originating entry, sub code wise.

4.15.5 The system should have the ability to generate nominal ledger for a range of dates Nominal head wise, Sub code wise and also to query for item wise, date wise with reversal details.

4.15.6 The system should support different reports like outstanding, reversals, age-wise analysis, CRA schedules etc. sub code wise / GL Sub Head wise for any date. The report should also be generated sol wise / set id wise.

4.16 Head Office Accounts

4.16.1 The system should be able to transfer of funds from one branch to another branch\head office for items not falling under Demand Drafts / Agency Drafts.

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4.16.2 The system should allow to define various Inter Branch transaction codes, including the following, but not limited to BC, BP, CC, CR, IP, LB, OT, PP, AT, AB, RR, , FN, DT, HT, RC, RT, MC etc. for Inter Branch transactions (Type of Transaction may be given numerical code)

4.16.3 The system should support for entry and maintenance of all originating debit, originating credit and responding debit and responding credit transactions.

4.16.4 The system should enable HO account entries under all types of A/Cs. i.e. Cash, Clearing and Transfer.

4.16.5 The system should be able to support for serial numbers of the advices are to be generated automatically with integration to the Inventory module. Before going to EOD, number of advice generated and number of advice inventory should tally and it should be enabled to acknowledge in the system.

4.16.6 The system should be able to capture details like branch code from branch master and should be able to generate a unique inter-branch advice number for each transaction as a reconcilable entry. Same number should not be repeated by any branch on a particular date.

4.16.7 The system should be able to print Branch Advices in the Bank defined formats with the following details, but not limited to, Branch Code of both originating and responding, date of the advice, amount, inter-branch transaction code, details of transactions. Without details of transaction system should not allow authorization. All fields of advice should be correctly entered with a separate provision for entering the E-advice or Manual advice linking to E-advice message field.

4.16.8 The system should provide print IBR statements/balancing report (consolidation of credit advices/debit advices, etc.) both at Branch level and at a centralized location (branch-wise) in the prescribed formats. The system should generate warning messages in event the individual accounts/product totals do not match the GL totals.

4.17 Audit Requirements

4.17.1 The system should be able to handle the Bank’s auditing requirements – both statutory (e.g. Risk based audit as per RBI guidelines) and other customized audits that are configured by users.

4.17.2 The system should be able to restrict access to auditing features only to designated users.

4.17.3 The system should be able to maintain complete audit trail for transactions and other activities Iincluding the new tables which are required to be created / maintained due to customizations) so as to enable the RRBs’ auditors to recreate transaction workflow if needed.

4.17.4 The system to allow configuration of audit trails on the basis of user defined parameters.

4.17.5 The system should be able to configure the application to generate and transmit custom alerts to the Bank's auditor when certain transactions are processed.

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4.17.6 The system should be able to provide facilities for on-site or off-site auditing in CBS enabled branches.

4.17.7 The system should allow the Bank's audit division to perform branch inspections.

4.17.8 The system to integrate with audit tools (provided by the bidder or procured by the Bank)

4.17.9 The system should support concurrent audits, income audit and IS audit for all CBS enabled branches.

4.17.10 The system should support generation of all reports including the statutory reports.

4.18 Service Tax

4.18.1 The system should be able to collect service tax along with service charges for all services and ability to link Service Tax calculation with all modules which have incidence of the same, including but not limited to deposits and advances.

4.18.2 The system should automatically calculate and deduct Service Tax at the time of Accounting / Provision / Recognition of payable / receivable transaction, actual payment, down payment, EOD / SOD etc.

4.18.3 The system should be able to create a charge structure which considers parameters including but not limited to customer, product, duplicate issuance, cancellation charges, volume, value, amount, location etc.

4.18.4 The system should be able to maintain a master to capture the following services that attract service tax, including but not limited to commission / exchange, charges on various services, any other charges from time to time.

4.18.5 The system should have ability to generate the centralized reports including Branch wise ST refunded, Service code wise ST refunded

4.19 Management Information Systems

4.19.1 The system should be able to generate dynamic reports based on the requirements like information on customer accounts, statutory reports, mandatory reports and various operational reports like Balance sheet, P&L analysis, classification of advances, NPA reports, Time and demand liabilities, Income Recognition and Asset classification returns 1A, 1B, 2A, 2B,3 & 4 etc.

4.19.2 The system should be able to generate all reports related to advances like BR 12Y, suit-filed, credit limits, exposure limits, borrowal accounts etc.

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4.20 Application Software Features

4.20.1 Audit features of Finacle have to be enabled for traceability of transactions.(financial as well as non-financial)

4.20.2 The solution must meet performance requirements of Bank by ensuring maximum throughput and minimum response time as stipulated in other sections of this document.

4.20.3 Wherever applicable, the software should provide features / facilities for meeting various provisions of Information Technology Act, 2000 and be in conformity with the guidelines issued by the RBI and other applicable laws with latest amendments.

4.21 Functional requirements

4.21.1 The Application software functional requirements are to meet all the Universal Banking functions of RRBs which are similar to the other RRBs in India. However the RRBs have implemented some unique products with a view to deliver certain value added services where the functionalities vastly differ from products offered by Other RRBs. Further functional requirements may also vary depending on the ancillary and other fee based services undertaken by Bank. Bank’s existing Deposit and Loan schemes are briefly explained in the annexures. The system should support and provide all these products.

Features and Modules Required

4.21.2 Comprehensive Customer Information File (CIF): Customer Information File should cover all the requirements for KYC (and AML guidelines) norms, all other regulatory requirements and analytical requirements such as CIBIL, with a provision for back office updates after account opening

4.21.3 Software should provide for on-site and off-site Audits and Branch inspections: Bank envisages shifting of majority of audit functions from on-site inspections / audits to off-site inspections / audits / surveillance and various small special audits. The software should have necessary support and provision for various audit tools. The tools must be provided for auditing application software, network, operating systems and database systems. The solution must also facilitate generation of alerts to the auditors about exceptional transactions defined for the purpose of monitoring discrepancies/ deviations, if any, instantaneously. The solution must be able to provide necessary results required in accordance with the Risk Based Internal Audit (RBIA) adopted by Bank as per the guidelines of RBI.

4.21.4 Software should provide for upload and download of files for bulk postings, data for consolidation, MIS. Branches receive bulk files from its clientele for posting to the customer accounts for payments like clearing, salaries, pensions, bonus, and purchase of sugar cane or other agricultural commodities, loan repayments, DD/PO issuance etc. Duly validated posting of these bulk files with entry level authorization and also supporting bulk authorization is required. Data from Non-CBS for consolidation for Consolidated GL or any other relevant Bank consolidation module is also to be supported. It is expected that the download and upload should be capable of handling encryptions.

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Software should provide upload of masters (employee / branch / bank etc. )into Finacle as a one time exercise.

4.21.5 The advances modules should handle all guidelines about prudential norms for identification of NPA, including probable NPAs, NPA management and suit filed, written off and compromised accounts including maintenance of the information relating to panel advocates, suits handled, etc. Income Recognition and Asset Classification (IRAC) is totally handled in the existing software and the data is consolidated at Bank level. This is a statutory requirement for the finalization of balance sheet and this requirement is to be provided as per the latest guidelines with provision to make modifications based on parameterization for provisions to be made.

4.21.6 Advances modules should capture information about all types of Securities (primary and collateral) against which Banks can sanction loans. Bank handles various securities including movables / immovable creating various types of charges. The securities include but not limited to shares and other paper based securities, Government bonds, NSC, housing, commercial real estate, agricultural lands, agricultural equipment, agricultural produce and other ancillary agricultural assets, stock-in-trade (open and under lock and key), Land, Machinery, fixed assets, raw material, stock-in-process, finished goods of industries, assets created in schematic lending, gold ornaments, Jewels, documentary bills and other bills etc. All types of securities that can be handled by the Public Sector Banks in India as per the extant guidelines are to be supported with provision to add more to the list with parameterization. Various valuation types, revaluation, capturing dates of valuation, valuer’s details are to be supported

4.21.7 Generation of comprehensive MIS and statutory, standard and reports required for business information and decision making: Besides various scrolls, ledgers, day end reports which are required as part of the transaction based routines, returns required for MIS, Balance Sheet finalization, statutory audit, control and monitoring function are presently handled in the existing system with Bank-wise consolidation in two tier process. The reports are required branch-wise as well as Bank-wise.

4.21.8 Consolidated General Ledger and associated returns for Bank’s balance sheet purposes should be in conformity with the stipulated Accounting Standards

4.21.9 The solution must provide extensive data extraction facility by supporting generation of statutory, standard and dynamic reports for Executive information and decision-making. It must also provide for analyzing the data for enabling Bank to monitor/evaluate performance of Bank in all parameters of business - product wise, segment wise, zone wise etc.

4.21.10 ATM / Debit Card (VISA Electron): Andhra Bank has an ATM Network with Base-24 Financial Transaction Switch (FTS). Bank is an affiliate of VISA and MasterCard as an issuer as well as acquirer. Bank has its own VISA Access Point. Bank has outsourced Point of Sale terminals (POS) driving. Bank is a member of NFS (National Financial Switch), a multilateral ATM sharing arrangement facilitated by IDRBT, Hyderabad and has bilateral arrangements for ATM sharing with few other Banks. The proposed software for RRBs should have necessary interface with the existing ATM solution of Andhra Bank and should provide all the required features.

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4.21.11 Finacle Version should have a Debit Card Management System so that the Card Issuance can be managed by Finacle. The required CAF, PBF files as per Base24 are to generated from Finacle.

4.21.12 Finacle Version should have a Reconciliation module for the transactions routed through Connect24.

4.21.13 The Bidder has to provide uploads for in house software.

4.21.14 The solution must facilitate Bank to define the workflow and route various tasks in accordance with authorization levels and process flow to be specified by Bank.

4.21.15 The solution must be integrated with all the electronic messaging systems like Fax, SMS, and e-mail to handle messages.

4.21.16 The solution must also provide common /general requirements like signature scanning and storing for verification, photo capturing, standing instructions, electronic messaging system, movement of security items and maintenance of subsidiaries and nominal accounts like Sundry Creditors / Suspense / Debtors, Credit receivables (in Inter Branch) Local Branch Accounts (clearing related), General charges, Commissions, Interest paid and Interest collected etc.

4.21.17 The solution should support and provide automatic generation of vouchers for system-generated transactions

4.21.18 The solution should provide for configuring general ledger accounts such that some general ledger accounts can be posted only with system generated transactions, without allowing manual postings.

Application Audit

4.21.19 Bank may opt for application audit by external / internal auditors after implementation of the same in Bank DC and in few branches and the bidder should permit for the same and also should attend to the observations of the auditor with regards to functionality, security, availability etc. of the application software and hardware provided .Bank will not reimburse any additional expenses incurred by the bidder in meeting such audit compliance

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5 Hardware requirements.

5.1 Hardware & Operating System requirement

5.1.1 The project scope includes supply, installation, maintenance and ongoing operations support of necessary Hardware and Operating Systems for the implementation of Finacle Core Banking Solution over Oracle RDBMS as per the scope of this RFP.

5.1.2 The bidder should clearly specify the requirement of various systems and OS for Data Center, Disaster Recovery Center, which become part of the entire CBS implementation

5.1.3 One of the three flavours of UNIX, viz., HP-UX, IBM-AIX or Sun Solaris is the preferred Operating System for the Core Banking database server

5.1.4 Operating Systems for the other servers could be any of the Industry standard OS, aptly hardened and secured

5.2 Supply of Hardware

5.2.1 The scope includes the supply of hardware to run the proposed Core Banking Solution (Production system) and other software modules offered to meet the requirements in the RFP. The hardware shall be sized and procured to provide a 3-tier architectural model with redundancy at each level. The design should facilitate separate Web, Application and Database servers for all delivery channels and applications.

5.2.2 The productions systems will be shared by the two Regional Rural Banks. Two separate database instances, application etc. are to be created on the shared hardware platform.

5.2.3 The bidder should provide one set of hardware which shall be shared for Testing (20 users) and Training (25 users). Two separate instances are to be created for Testing and Training requirements.

5.2.4 The bidder shall provide one server to handle migration of 30 branches at a time.

5.2.5 The equipment supplied shall be fully insured under comprehensive insurance to cover equipment during the period of transit and installation till acceptance by Bank. The insurance shall be for an amount 110% of total value of equipments on ‘all risk’ basis including war risk, theft and robbery clauses valid for the entire period till acceptance of the equipment by Bank. In case any loss or damage occurs, the Bidder should be responsible for initiating and pursuing claims and settlement and also make arrangement for repair and/or replacement of any damaged item. The Bank would extend all its cooperation on getting the insurance of the Hardware delivered without any commercial obligation

The Bidder shall be required to complete hardware sizing for the complete scope with provision for upgrade as specified while submitting the bid.

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5.2.6 The Bidder has to provide an undertaking and own the responsibility for the delivery of expected performance under Service Level Agreements (SLAs). In the event of any performance issues, the Bidder must provide additional hardware as necessary at their own cost till expiry of warranty period or till 6 months after completion of project, whichever event occurs later.

5.2.7 During the process of migration, if Hardware sizing is found to be insufficient, the Bidder will have to add additional hardware at one go to ensure that, the additions would be sufficient for the entire set of branches considering the projected volume of business and also caters to the stipulated headroom without any additional costs involved. It is to be noted that the Hardware sizing will be a judgemental call of the Bidder only and the Bank would not be responsible for any errors in judgement by the Bidder

5.2.8 The bidder must give full details of technical architecture of the processor and mother board including clock frequency, primary bus architecture, available cache, memory, storage and backup devices, controllers etc

5.2.9 The hardware proposed must be fault tolerant. The Bidder must provide the details of fault tolerance features proposed at all levels of central servers including recovery in case of failure

5.2.10 Bank proposes to utilise the existing PCs, Printers, UPS etc. at branches. The bidder may provide requirements for Branch Roll out to enable the Bank to validate the existing IT infrastructure and make arrangements for refresh on need basis.

5.2.11 The bidder must also ensure that the hardware resources utilization should not exceed 70% at any point of time in the DC & DRC, for five years from the date of signing of contract. In case the utilization exceeds the above level, the bidder must provide additional hardware without any additional cost.

5.2.12 Utilisation of resources across the environment should not cross 70% for the peak loads of various applications.

5.2.13 However, utlising all the resources by any particular application for a given type of process other than OLTP (such as batch processing) due to certain architectural requirements is acceptable to the Bank, provided this results in better overall performance of the system over and above what is given in the RFP.

5.2.14 The hardware must be highly available with reference to recoverability so that any momentary failure can be over come with no impact on end user availability

5.2.15 Further, the Bidder may also ensure that the hardware is upgradeable horizontally and vertically and highly available with adequate redundancy for all the critical parts.

5.2.16 The Bidder is expected to submit a sizing document duly substantiating the basis for sizing of the hardware. Bank may at its sole discretion evaluate the hardware sizing document. The Bidder needs to provide necessary explanation for sizing document during Vendor presentation.

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5.2.17 The hardware acceptance tests including performance validation of hardware will be mutually agreed upon. Bank may at its discretion engage an external consultant for hardware acceptance.

5.2.18 In the Commercial Bid, the bidder has to provide and quote the requirements of hardware, component wise for each item for DC and DRC separately. The production hardware to be provided to DRC should be of the same specifications as that of Data Center

5.2.19 The configuration should specify the Operating System and RDBMS with version numbers. The patches, if any, for the given version should also be mentioned

5.2.20 The detailed hardware technical requirements soliciting response from the Bidders are given in annexures.

5.2.21 The bidder shall submit in the technical bid, complete list of Hardware, Operating System Software, RDBMS etc proposed to be supplied under the project at all the locations with full configuration, technical details, version numbers, deliverables along with sizing methodology as detailed in this RFP as per the format enclosed as a part of Technical Bill of Materials.

5.2.22 The Bidder may partner with OEM(s) or National Distributor(s) in the consortium for supplying Hardware. The Bidder should furnish a letter from the OEM authorizing the consortium member to quote for the OEM's product in response to this RFP. The letter should also certify that the Prime Bidder or the Consortium Partner is a certified partner for delivering the highest category of support for the CBS equipment.

5.2.23 Bidder should ensure that the hardware supplied to Bank including all components and accessories are brand new and are supplied free of any / all encumbrances. No refurbished hardwarere should be provided.

5.3 Backup – Recovery – Replication Requirements

5.3.1 The brief scope of work for Backup, Recovery and Replication Requirements is as follows:

5.3.2 Designing a backup and recovery solution

5.3.3 Providing necessary hardware, software and process & procedures document justify the need for additional procurement.

5.3.4 Planning, providing an automated Tape Library system and justifying the need for the same.

5.3.5 Implementation of backup and recovery solution to meet performance parameters and SLA.

5.3.6 Planning, providing and implementing a replication solution for the CBS and other relevant applications which need replication of data from DC to DR not confining to CBS alone.

5.3.7 Planning the solution to meet RPO, RTO and SLA requirements

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5.3.8 The “Recovery Point Objective” should not exceed 30 minutes and “Recovery Time Objective” should not exceed 8 hours.

5.3.9 The Bidder has to provide a note detailing the replication methodology suggested performance parameters, databases & operating systems supported and graphic tools for manageability.

5.3.10 The Bidder should provide for LAN free backup mechanism with backup window of not more than 2 hours duly considering the data volumes after rolling out the entire solution and also considering the growth projected for the entire project scope.

5.3.11 The Bidder shall perform back up according to the mutually agreed back up policies and procedures, including performance of daily, weekly, monthly functions for data and software maintained on Servers, including interfacing with the specified back up media storage facilities at Bank as a part of the Facility Management services extended to the Bank.

5.3.12 The Bidder should ensure that the CBS solution architecture and replication technologies suggested are compatible to a near site data replication providing for a zero data loss replication as and when the Bank desires to implement DC — Near Site – DRC replication.

5.3.13 The Bidder should furnish the details of procedure for bringing up the DRC within the recovery time objective when the DC is down. The Bidder should also furnish the details of synchronizing the DC data from DRC after DC infrastructure is made operational. A document on DRC drill is also to be provided and the Bidder has to provide all incidental services under Facility Management.

5.4 Acceptance of Hardware

5.4.1 Bank may choose to carry out a technical inspection / audit and performance evaluation of products offered by the short listed Bidders. The Bidder should permit Bank or any person appointed by Bank to conduct the audit and any incidental expenses incurred for the same would be borne by the Bidder. However Bank will bear expenses relating to the travel and boarding of its officials / consultants.

5.4.2 The Post Delivery Audit shall be conducted either for all or critical components of entire solution. During the audit, random physical inspection of systems shall also be carried out by opening the systems and verifying the make and model of important components like Hard Disks, CD ROM, memory etc. During the audit, if any discrepancies / defects are found either in systems or components, the bidder shall undertake to replace such systems and components at their cost.

5.4.3 The bidder has to conduct the following activities and submit relevant reports to Bank

The bidder shall provide necessary performance evaluation tests (mutually acceptable formats) for hardware sizing as well as response time for all types of transactions.

All systems are to be tested with reference to CPU, Memory, etc. Error log must be maintained for all such tests.

5.4.4 Bank may opt for acceptance test before delivery of systems at Bank’s site. The acceptance test is only to verify compliance with the systems proposed and systems delivered but the Bidder continues

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to be liable for system performance at peak loads till parameters on various categories like number of accounts, transactions, etc. reach their highest specified levels

5.5 Additional Information

5.5.1 The Bidders and / or the authorized service providers should have support offices for adequate support arrangement and they should have their employees for execution of projects. However, Prime Bidder shall be fully responsible for the service provided by the service providers. Bank shall not make any reference to the Service Provider and in case of any deficiency in service on a service provider’s part; penalties shall be levied to the prime bidder’s account.

5.5.2 Bank would subsequently provide Addresses of the Data Centre and Disaster Recovery Centre.

5.6 Core Banking Solutions – Hardware Sizing

5.6.1 Inputs for Sizing the Hardware - CBS – Servers sizing parameters.

Table 5-9 RRB CBS Server sizing parameters

Parameter Sizing Information

Performance The CBS architecture should be able to process a minimum of 12 TPS, excluding Interest Applications and Year End Transactions where all the debit and credit legs of the transaction would be considered as a single transaction.

The response time to the storage should be at a minimum (less than 10ms) for a single transaction.

End-to-End response time for a user accessing the CBS over the WAN under peak load conditions should be less than 4 seconds. i.e., Any transaction initiated from any one of the delivery channels (including from branch teller) should provide a complete response under peak load within 4 seconds

Resource utilization should not exceed 70% under peak load after all the scheduled branches are migrated to CBS at least, till the end of five years from the date of signing the contract.

The time taken for a transaction to complete (from the time it reaches the Data Center LAN and exits as a completed response) should not be more than 200ms (Data Center Latency)

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Parameter Sizing Information

All modules proposed by the Bidder should be seamlessly integrated either at the Application Layer or at Database Layer.

Scalability CBS application and hardware should at a minimum

- Application should support 600 users and should be scalable to 900 users by 2015.

- Be sized for 180 branches, 2 extension Counters, 10 New Branches per year that would be commissioned directly on CBS till 2015. (The data provided covers both the Regional Rural Banks.)

- The modalities of the number of instances of Application, Database needed have to be explained in the technical proposal by the Bidder

Availability All components within the CBS environment should be hot-swappable.

The CBS architecture should have Store and Forward (SAF) capabilities.

Fault Tolerance

Clustering at Data Centre should be provided at both Application as well as Database levels.

Database clustering at Data Centre and DRC should be Active-Passive (High availability) as per the scope of the RS and the Bidder should support to upgrade the same to Active-Active Clustering at DC as and when decided by the Bank, duly quoting the additional costs, if any, as an optional item in the Bill of Material.

With regard to Clustering at application level, provision for redundancy option for all applications brought in by the System Integrator is mandatory in lieu of Active–Active Clustering.

5.6.2 Additional Inputs for Solution Sizing are furnished hereunder.

Table 5-10 RRB CBS – Additional inputs for Solution Sizing

Parameter Sizing Input

Estimated growth of Users 10% per annum

Estimated growth of Accounts 10% per annum

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Estimated growth in Transactions 10% per annum

Additional functionality increase expected due to business, regulatory and statutory requirements

30%

Peak load during a day 30% of transactions per hour during peak time

Peak time window 2 hours

Transactions that shall be carried out in a three hours window

70%

Concurrent users transacting at any given point of time

@80% of total users (please refer number of users in core banking server sizing requirements)

Number of branches proposed to be connected and scheduled date

92 units by 25.09.10

184 units by 31.12.10

Estimated number of new branches which are to be connected to CBS after ------

10 new branches per year starting 31.12.2009

Automated Teller Machines as on date

None

End of Day completion rrequirement (After all the proposed branches are centralized)

Branch side :With in 15 minutes after the last transaction is posted in the branch

DC side :

- Within 120 minutes after the Last branch puts through its last Transaction on a Normal day for a full load of all connected branches

- Within 180 minutes during Quarter End, Half Year and Year End for full load of all connected branches

Data Storage (Data to be migrated from the existing system including historical data for 2 years)

100 GB

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Routine Operations like retrieval of Signatures, Photos, Images etc

4 Seconds

Estimated requirement of Storage at DC and DR for a five year period

As per the Database requirements of the application duly taking regulatory and statutory requirements into consideration.

Minimum Online Data for eight years depending upon the Data Type and Application Type with due Archival of the Data beyond one year subject to applicable regulatory requirements

A list of data structures – storage period is to be furnished and substantiated by applicable guidelines in force.

Transactions break up Approximately 30 % of transactions stated by phases over the next 3 years would be query type of transactions. Estimated Average percentage of transactions through:

Branch: 95%

ATM: 5%

The rate of growth of ATM transactions may be considerable. Hence under this category alone, the transactions may even touch 10%.

Enquiry transactions are expected to shift to alternate delivery channels as and when they are made available.

Operating System with all necessary System Administration tools

One of the flavors of Unix viz. HP-UX, IBM-AIX, Sun Solaris is the preferred OS for CBS Database server. Other Operating systems may be used in case of other associated servers.

Estimated percentage of non-financial transactions such as balance enquiry

40%

5.6.3 Existing business information of proposed CBS branches

Table 5-11 Information on existing business for solution sizing.

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Description of Item Quantity

No. of Accounts 1291440

Financial Transactions Per Day 29648

Non-Financial Transactions Per Day 11860

Total Number of Users 600

5.6.4 Projections for proposed CBS branches for next Five years

Table 5-12Business projections for 5 year period for solution sizing.

Description Dec-2009

March-2011

March-2012

March-2013

March-2014

March-2015

Branches 184 196 206 216 226 236

Users 600 612 673 740 814 900

Accounts (figures in Lakhs)

12.9 14.5 16 17.5 19.5 21

Fin. TPD (figures in Lakhs)

0.3 0.34 0.37 0.41 0.45 0.50

Non-Fin TPD(figures in Lakhs)

0.12 0.135 0.147 0.16 0.18 0.20

5.6.5 The Bidder shall provide the details of hardware sizing detailing the modalities used for the same and explaining the calculations using the data provided above

Additional Information for Bidder on Hardware Sizing

5.6.6 Storage requirements for the CBS will have to be assessed by the Bidder and the Storage solution shall be sized and procured accordingly.

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5.6.7 Redundancies must be built into the solution for ensuring optimal performance while taking into account, the present as well estimated number of future users and the load estimated on the system. The backup and disaster recovery plans need to be highlighted and the bandwidth requirements from the branches to DC / DR needs to be spelt out.

5.6.8 Utilization of hardware resources should not exceed 70% level at any point of time (for CPU(s), memory module(s), hard disk(s) and NIC (s), and for WAN Equipment such as Router(s) till the end of five years from the date of signing of contract.

5.6.9 The servers and network devices should have redundant power supplies for connecting power from 2 separate UPS supplies. In case of failure of one power supply, the second power supply should be able to take the full load without causing any interruption in services. Any upgrade to the existing UPS needs to be proposed by the Bidder.

5.6.10 The hardware to be provided must be scalable both horizontally and vertically and provide high availability with adequate redundancy for all the critical components. It must be fault tolerant. The hardware should support recoverability so that any momentary failure can be overcome with no impact on end user availability.

5.6.11 In case the server resources are not horizontally scalable, the server should be configured allowing 20% of free slots in terms of CPU boards and Memory modules so as to enable future upgrades. The hardware models need to be chosen accordingly.

Upgrade option keeping the above point in consideration is to be explained in detail.

5.6.12 High availability should be built in within the system installed in the Data Center. Hardware should have sufficient redundancy in terms of Power Supplies, Fans and other components. Clustered systems should be used wherever applicable. All critical components should be hot swappable and replacement of such components should not result in system downtime.

Bank’s intention about the hot swappability feature is that the solution provides for the replacement of critical components while the systems are functioning without needing to take a down time (shut down the systems for maintenance). Bidder has to note that this feature is required in meeting uninterrupted (24x7x365) services to the customers.

Keeping the above business requirements in view, Bidder have to offer an alternate efficient mechanism in place of hot swappable feature for CPU, RAM, I-O slots and disks in case such facility can not be provided by the OEM. The Bidder has to explain all such features with technical write ups and estimations made in this regard as stipulated in the RS.

5.6.13 All servers should have a minimum of dual 1000 Mbps network interface cards (NIC) installed on different slots. Each NIC shall be cabled from a different module on the switch using gigabit speed cabling. Gigabit speed cabling is already available at both the DC and DR. For systems other than the servers, such as desktops and clients used as power users, dual 1000 Mbps NICs should be configured.

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5.6.14 The proposed hardware should perform in a redundant mode to provide 24x7 services to the clients and to support other delivery channels including ATMs, Any Branch Banking (ABB) etc. This is also applicable for branches which work in extended hours like 8 am to 8 pm branches, besides normal working hours for other branches.

5.6.15 The Bidder should ensure that the proposed servers should be able to accommodate newer versions of processors that support higher frequency of operation if required, whenever they are available. It has to be substantiated with proof and migration is to be furnished preferably with an undertaking to replace the processors as and when such processors of highest level of frequency are supported.

5.6.16 The proposed server models wherever applicable are to be such as Blade Servers / Rack Mount servers with key board, monitor etc. shared to minimize the requirement of rack space in Data Center / Disaster Recovery Center considering the existing space constraints. The model however should not pose constraints in performance.

5.6.17 Systems / products marked as End-of-sale by the respective OEMs should not form part of the equipment (Bill of Material) offered.

5.6.18 The Bidder is required to quote for each component of the Hardware/ proposed as a part of the commercial bid in addition to the total cost of solution and any deviation in this regard will make the quote liable to be rejected.

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6 Implementation and maintenance services.

6.1 Software implementation.

6.1.1 The vendor shall make a Detailed System Study of two Regional Rural Banks and map the requirements to Finacle Universal Banking Solution 7.0.x (most suited latest version for Regional Rural Banks). The Detailed System Study (DSS) document shall be signed off by the vendor and the Bank.

6.1.2 The vendor shall identify the gaps and customise Finacle Universal Banking solution in accordance taking broad scope as elaborated in chapter 4 of this RFP and the vendor has to make assessment of customisation accordingly. The gap analysis document shall be signed off by the vendor and the Bank.

6.1.3 The vendor shall undertake Business Process Definition (BPD) and together with customised code meet the entire Software requirements envisaged in this RFP. The BPD document shall be signed off by the vendor and the Bank.

6.1.4 The vendor shall install, configure and implement Oracle RDBMS and Finacle Universal Banking Solution. The vendor shall furnish a document detailed installation process, parameters, configuration set up for RDBMS as well as Finacle.

6.1.5 The vendor shall implement separate instances of Finacle / database for two RRBs on shared hardware and RDBMS environment.

6.1.6 The vendor shall provide implementation similar services for one Test and one Training environments on common Hardware.

6.1.7 The vendor shall coordinate and assist the Bank team in User Acquaintance Test (UAQ).

6.1.8 The vendor shall coordinate and assist the Bank team in User Acceptance Test (UAT). The UAT sign off is subject to vendor carrying out necessary rectifications / modifications / enhancements based on UAT feed back given by the Bank team.

6.1.9 In a parallel process, the vendor shall provide Finacle Data upload formats duly explaining field level requirements and expected validations. The vendor shall own this process and also willing to work with the existing software vendor to finalise Data extraction requirements from the existing system.

6.1.10 The vendor shall plan for migration of 5 pilot branches from each RRB. The migration processes shall be fine tuned with observations and feed back from the pilot phase. The vendor shall make necessary enhancements / customisation to comply with the feed back from the pilot phase. However any new requirements envisaged at this stage shall not come within the scope of feed back.

6.1.11 The vendor shall provide data uploading and migration assistance at Andhra Bank’s Data Center for all the remaining branches in a mutually agreed plan with two RRBs. The vendor scope includes mock upload of data in a test system and providing validation reports to ensure error free data upload

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to production system. This mock data upload is to be carried out as an iterative process till the errors are rectified in the process.

6.2 Hardware implementation.

6.2.1 The vendor shall be responsible for delivery of systems at the Primary and Secondary sites or at any other site decided by the Bank. Bank shall provide the addresses of the sites before despatch of material from the vendor’s site. The vendor shall make its own arrangements for delivery and receipt of hardware, positioning in right places, unpacking etc.

6.2.2 The vendor shall submit a plan for installation of systems which shall be agreed upon and install the systems accordingly. The vendor shall ensure all the requirements of Finacle UBS and Oracle RDBMS platform are taken care of with required level of OS hardening.

6.2.3 The vendor shall furnish infrastructure (Power, Precision Air Conditioning etc.), network and IS security requirements to install and maintain the hardware. Bank will make necessary arrangements after finalising such requirements with the selected Vendor for CBS solution.

6.3 Handholding support at branches.

6.3.1 The vendor shall provide hand holding support at 10 pilot branches with two resources per branch per week. Bank may at its option relocate the resources, however with prior communication and discussion.

6.3.2 The vendor shall also provide hand holding support at 40 more branches with one resource per branch per week.

6.3.3 The resources provided for hand holding support shall have requisite application knowledge with orientation to Bank’s BPD and good communication skills in English.

6.3.4 The resources provided to the branches of Rushikulya Gramya Bank should be capable of conversing in Oriya language.

6.3.5 The resources provided to the branches of Chaitanya Godavari Grameena Bank should be capable of conversing in Telugu language.

6.3.6 The hand holding support resources have to work in coordination with L2 Application support team at Andhra Bank DC.

6.4 Resources for Helpdesk.

6.4.1 The Help desk for each of the RRBs shall be set up at the respective Head quarters of two RRBs at Guntur (Andhra Pradesh) and Brahmapur (Orissa).

6.4.2 The vendor shall also provide 3 – L1 resources for each of the Help Desks with adequate knowledge on Finacle. The resources have to be trained in the solution customised for these two RRBs. These

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resources shall work in the shifts as desired by the respective RRBs. The indicative timings are from 8.30 am to 8.00 pm.

6.4.3 The resources provided for hand holding support shall have requisite application knowledge with orientation to Bank’s BPD and good communication skills in English.

6.4.4 The resources provided to the branches of Rushikulya Gramya Bank should be capable of conversing in Oriya language.

6.4.5 The resources provided to the branches of Chaitanya Godavari Grameena Bank should be capable of conversing in Telugu language.

6.4.6 The Help desk L1 resources have to work in coordination with L2 Application support team at Andhra Bank DC.

6.5 Resources for ongoing support.

6.5.1 The vendor shall provide 3 – L2 resources for Finacle Universal Banking Solution to suit the needs of both RRBs. As of now 24x7 support is not envisaged. These resources have to work in coordination with ATS support from M/s Infosys and Bank’s maintenance team. The resources should be capable of handling all application related issues and also guide Hand holding support team during implementation and Help Desk.

6.5.2 The vendor shall provide 1 – Oracle DBA who will work in coordination with Hardware and Application teams. The timings for Oracle DBA may vary depending on the needs.

6.5.3 The vendor shall provide 2 resources for the maintenance Hardware. These resources shall work in coordination with the backend team who will provide support under warranty / AMC.

6.5.4 The resources are required for a period of 5 years or for a lesser period at the option of the Bank.

6.5.5 For all major activities, Bank shall provide downtime without interruption to Bank’s working schedule. The resources are to be provisioned to cover maintenance activities on holidays or late night shifts. The resources have to work in coordination with other teams in such cases.

6.6 Warranty and Annual Technical Support for Finacle and RDBMS.

6.6.1 The vendor shall offer warranty for Finacle Universal Banking Solution and Oracle RDBMS as per the standard terms and conditions of the respective Software vendors.

6.6.2 The vendor shall arrange for post warranty Annual Technical Support from respective Software vendors.

6.6.3 The vendor shall arrange to contract for necessary enhanced support for immediate trouble shooting to encounter show stoppers.

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6.7 Warranty and Annual Maintenance Contract for Hardware.

6.7.1 The vendor shall provide Hardware with 3 years warranty.

6.7.2 The vendor shall also offer Annual Maintenance Contract for a minimum period of 2 years within this contract and renewable further.

6.7.3 The vendor shall contract for enhanced support to encounter show stoppers.

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7 List of Indicative Deliverables

7.1.1 This section covers a comprehensive list of deliverables that are to be provided by the Bidder as a part of the scope. The details provided throughout the document are also to be considered in addition to this section, while arriving at the proposed solution.

7.2 Deliverables for the Solution

Finacle Universal Banking Solution:

7.2.1 Finacle Universal Banking Solution is to be provided for two RRBS sponsored by the Bank. The license to use is to be provided to two RRBs as two separate End User License Agreement or a Tripartite End User License Agreement with Infosys as party granting license, two RRBs as licensees and Andhra Bank as facilitator. The license document should have license fees, Annual Technical Support requirements.

7.2.2 Detailed System Study and submission of document for both RRBs.

7.2.3 Conducting Gap Analysis and Gap Analysis document.

7.2.4 Customisation scope document based on Gap Analysis document.

7.2.5 Data migration strategy document with Data upload formats duly explained.

7.2.6 Business Process Definition process and BPD document.

7.2.7 User Acquaintance Test environment.

7.2.8 Coordinating User Acceptance Test and submission of UAT sign off document with details of UAT.

7.2.9 Pilot roll out plan document.

7.2.10 Document for branch client installation.

7.2.11 Oracle RDBMS License, installation, configuration and installation document. (For Production System and test system and for DRC system if separate license is applicable)

7.2.12 Finacle Product documents and Finacle implementation document.

7.2.13 Finacle installation and installation document.

7.2.14 Debit Card issue / interface document – sharing Bank’s switching infrastructure

7.2.15 National Electronic Funds Transfer through Bank’s NEFT environment.

7.2.16 SMS push alerts.

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7.2.17 Interface to Financial Inclusion project.

7.3 Systems Deliverables

7.3.1 All the hardware should be adequately sized based on data provided and should have appropriate redundancies to meet the Performance Standards and comply with the SLA.

7.3.2 The Bidder should provide adequately sized hardware for

Data Center for Production with three tier architecture duly following best practices and optimizing the architecture.

Disaster Recovery Center – in sync with systems proposed for Data Center.

Test & Development and Training – one set of systems with separate environments for Testing & Development and Training.

Staging Servers

Submission of installation, configuration documents, OS hardening and submission of OS hardening document for all the above systems.

7.3.3 The bidder should Size, Procure, install and configure

Storage Solutions, with SAN Switch, necessary software

Back up, Recovery and Replication, Backup server

Middleware for Delivery Channels (Besides Connect24 which is a part of Finacle)

Submission of relevant document.

7.4 Training

7.4.1 The bidder should provide training to Bank personnel covering.

Core Technical Team

Operating Systems

7.5 Resources support:

7.5.1 The Resources support covers

Data Center Management

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Physical and Application Security Management

Server Management

Database Management

Performance Monitoring and Tuning of the Core Banking Solution

Ongoing Application Support Management

Back up and Recovery Management

Patch Management for Applications and OS

Disaster Recovery Center Management

Physical and Application Security Management

Server Management

Database Management

Patch Management for Application and OS and ensuring that the systems in the DRC are in sync with the systems in the DC

Back Up, Recovery and Replication Management

Incident Management and Response Management

User Management

All hardware, and OS should be supplied with 3 years Onsite warranty

All Application Software should be supplied with 1 year warranty

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8 Technical Bid – Organisation and formats.

8.1.1 This section covers mandatory requirements as part of Technical Bid to be submitted by the Bidder..

8.2 Documents required as part of bidder’s profile:

8.2.1 Bidder’s covering letter for the proposal

8.2.2 Authorisation for Signatory.

8.2.3 Bidder Profile (format provided in annexure)

8.2.4 Financial Indicators of the bidder in format – supported by three years audited annual financial statements (If audit of FY 2008-2009 is not completed a provisional copy certified by a competent official such as CFO may be submitted while statements for the years 2006-07, 2007-08 have to be audited statements.

8.2.5 Compliance Certificate.

8.2.6 Certificate confirming contents of soft copy.

8.2.7 Statement showing Bidders eligibility criteria. Each point in relevant sections have to be confirmed with details in an word / xls document

8.2.8 Credentials

8.2.9 Team Strength

8.2.10 Statement of Deviations in Terms and Conditions.

8.3 Documents required as part of Technical Proposal.

8.3.1 Document containing features of Finacle version proposed with architecture details.

8.3.2 Mapping document showing Finacle CBS and Bank’s specifications as stipulated in this RFP.

8.3.3 Bill of quantities with version details for Operating Systems, Middleware, RDBMS.

8.3.4 Hardware sizing document.

8.3.5 Solution architecture logical design and physical architecture

8.3.6 Document on infrastructure requirements indicating power, PAC requirements

8.3.7 Document on Network and Security requirements

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8.3.8 Hardware Bill of Quantities (Component-wise details with part numbers to be furnished).

8.3.9 Hardware product literature for each system.

8.3.10 Customisation strategy document.

8.3.11 Project Plan with timelines for implementation.

8.3.12 Masked Commercial Bid.

8.4 Cost of Bid documents

8.4.1 Demand Draft for Rs. 25,000/ - Covering of Cost of Bid is to be submitted separately alongwith bids.

8.5 Earnest Money Deposit.

8.5.1 Demand Draft for Rs.10 Lakhs Covering EMD or Bank Guarantee in lieu of DD covering EMD is to be submitted separately alongwith Technical Bid.

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9 Commercial Bid - Format for Bill of Materials

9.1.1 The Bidder should ensure that this document contains data pertaining to the Commercial Bill of Materials. It is to be ensured that the non-commercial numbers presented in this document should be the same as the one provided in the Technical Bill of Materials document.

9.1.2 The Bidder should propose the costs in such a way that the mentioned costs here would be the maximum costs that the Bank will have to incur during the contract period and there would be no revision upwards. Any reduction in prices for the components or services will have to be passed on to the Bank.

9.1.3 The unit prices are necessarily quoted wherever indicated. For Hardware, the prices are to be quoted component-wise also wherever applicable.

9.1.4 Bank reserves the option to place further orders for procurement of systems or components at such unit / component prices for additional requirements.

9.1.5 All Prices to be quoted as inclusive of all Taxes and Duties. However all taxes and duties as applicable shall be indicated separately

9.1.6 The Total Cost for each of the sections will have to be provided in Figures as well as words.

9.1.7 The formats in the following sections are to be used for submission of Commercial Bid.

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9.2 Application Software

Table 9-13 AB RRB CBS Commercial Bid Format for Application Software

Sl. No. Particulars Price per Branch Total Price for 200 branchesBase Price Tax

componentsBase Price Tax

components

1Finacle Core Banking Solution meeting all business requirements of RRBs

Optional 2 Finacle eBanking

9.2.1 The license is to be valid for use at Data Center and Disaster Recovery Center either for a planned activity or for Business Continuity.

9.2.2 The license is to be valid for use by both the RRBs sponsored by the Bank.

9.2.3 Any other priced component required alongwith Finacle other than Oracle RDBMS are also to be included in this sheet.

9.2.4 For all separately priced items, the details are to be furnished under item no.7 in the table.

9.2.5 The Bill of Materials should be provided in an MS Excel Spreadsheet only.

9.2.6 Using the following formats, the Bidder should prepare a cash flow for 5 years providing annual cash flows

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9.3 Application Software Customization and implementation.

Table 9-14 AB RRB CBS Commercial Bid Format for Application Software customisation and implementation.

Sl. No Particulars Consolidated chargesBase Price Tax Component

1

Finacle Customisation to be built to meet functional specifications envisaged in RFP – including ATM interface, NEFT through Andhra Bank etc.

2

Finacle implementation for two RRBs – separate instances, test and training environments and both at DC and DRC.

3Data upload / migration activity at Data Center for all branches

…

Additional customisation --- man days

Total Customization Charges

Note:

9.3.1 Software should be customized based on the Gap Analysis for the proposed scope of the project.

9.3.2 The customized software is to be maintained by the Bidder and integrated with the base software during any version upgrades or patch upgrades.

9.3.3 Additional customisation – man days provisioned above are for use in case of new requirements that are not envisaged as part of this RFP.

9.3.4 Finacle implementation includes implementation services to be extended at DC, DRC, for separate instances for RRBs and Test and Training systems.

9.3.5 Data upload activities to include required mock migration activity as well as final upload in the production run.

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9.4 Hand holding support at Branches.

Table 9-15 AB RRB CBS Commercial Bid Format for Handholding support

Sl. No Particulars Consolidated chargesBase Price Tax Component

1

Hand Holding support for 25 branches for each of the RRBs (i.e. for 50 branches in all spread over three districts of Andhra Pradesh and two districts of Orissa)

Optional costs for additional branches

Table 9-16 AB RRB CBS Commercial Bid Format for Handholding support (Optional costs beyond 50 branches)

Hand holding support per branch charge at the rate of one person week per branch.

9.5 Training.Table 9-17 AB RRB CBS Commercial Bid Format for Training.

CategoryNo of persons

No of Batches

No of days of Training

Training charges / per person / per day

Total

(a) (b) (c) (d) A x C x D

Finacle Core Team Training

25 1 20

Operating System 10 1 10

Total Training Cost

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9.6 Hardware Requirements

Hardware for installation at Data Centre, Hyderabad

Table 9-18 AB RRB CBS Commercial Bid Format for Hardware for DC

Sl. No. Make and Model

No. of Units

Unit Rate Total

Base Price Tax Component


CBS – Web Servers

CBS – Application Servers

CBS – Database Servers

CBS – Staging Servers

CBS – Test / Training Servers

CBS – Storage solution

CBS – Backup solution (Tape Library – if any server is required the same has also to be quoted)

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Hardware for installation at Disaster Recovery Centre (place to be finalised)

Table 9-19 AB RRB CBS Commercial Bid Format for Hardware for DRC

CBS – Web Servers

CBS – Application Servers

CBS – Database Servers

CBS – Storage solution

CBS – Backup solution (Tape Library – if any server is required the same has also to be quoted)

9.6.1 Hardware should be supplied with 3 years comprehensive on-site warranty.

9.7 Operating Systems:

9.7.1 If there are any costed OS licenses are required the same has to be quoted in a similar format.

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9.8 Relational Database Management Systems

Data Centre

Table 9-20 AB RRB CBS Commercial Bid Format for RDBMS for DC


No. of Units

Unit Rate Total



Finacle production system

1 Oracle licenses required as required

2 Oracle license for Test system

TOTAL

Disaster Recovery Centre

Table 9-21 AB RRB CBS Commercial Bid Format for RDBMS for DRC


No. of Units

Unit Rate Total



Finacle production system

1 Oracle licenses as required

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9.9 Work stations and other requirements at Data Center / DRC.

Table 9-22 AB RRB CBS Commercial Bid Format for Workstations (DC)

Sl. No Branch HardwareMake / Model

No. of Units

Unit rate Total

Base Tax Base Tax

1Client PCs - 10 DC nos.

10

2

Printer for printing Term Deposits certificates 24 Pin 80 column / 300 CPS - 1 no.

1

3

Printer for Printing Demand Drafts / Pay Orders (Banker’s cheques) - 9 Pin 80 column / 300 CPS - 1 no

1

4

132 column 300 CPS – 9 Pin Dot Matrix Printer - 2 nos.

1

7

Suitable scanner for signature scanning (flatbed) - 1 no.

1

8 LaserJet Printer 1

Total

Table 9-23 AB RRB CBS Commercial Bid Format for Workstations (DRC)

Sl. No Branch HardwareMake / Model

No. of Units

Unit rate Total

Base Tax Base Tax

1 Client PCs - 5 nos. 5

2 LaserJet Printer 1

Total

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9.10 Annual Technical Support and Annual Maintenance Contract.

Annual Technical Support Charges – Application Software.

Table 9-24 AB RRB CBS Commercial Bid Format for Annual Technical Support Charges – Application Software.

Sl No

Name Of The Application Software / Module With Details

Annual Technical Support Charges

Year No.

No. of Units

ATS rate (%)

ATS charges

Base component

Tax Component

1 Finacle CBS

Table 9-25 AB RRB CBS Commercial Bid Format for Annual Technical Support Charges – Oracle RDBMS etc.(DC)

Sl No



Year No.

No. of Units

ATS rate (%)

ATS charges

Base component

Tax Component

1 Oracle RDBMS – DC2 Oracle for Test

systemTotal

Table 9-26 AB RRB CBS Commercial Bid Format for Annual Technical Support Charges – Oracle RDBMS etc. (DRC)

Sl No



Year No.

No. of Units

ATS rate (%)

ATS charges

Base component

Tax Component

1 Oracle RDBMS – DR

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Annual Maintenance Contract Charges – Hardware (DC)

Table 9-27 AB RRB CBS Commercial Bid Format for Annual Maintenance Contract Charge – DC Hardware.

Sl NoDescription of system


Year No.

No. of Units

AMC rate (%)

AMC charges

Base component

Tax Component

1 2

Annual Maintenance Contract Charges – Hardware (DRC)

Table 9-28 AB RRB CBS Commercial Bid Format for Annual Maintenance Contract Charges – DRC Hardware



Year No.

No. of Units

AMC rate (%)

AMC charges

Base component

Tax Component

1 2

Table 9-29 AB RRB CBS Commercial Bid Format for Annual Maintenance Contract Charge - DC Workstations



Year No.

No. of Units

AMC rate (%)

AMC charges

Base component

Tax Component

1 2

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Annual Maintenance Contract Charges – Hardware (DRC)

Table 9-30 AB RRB CBS Commercial Bid Format for Annual Maintenance Contract Charges (DRC)



Year No.

No. of Units

AMC rate (%)

AMC charges

Base component

Tax Component

1 2

9.10.1 Post warranty ATS / AMC charges to be quoted to ensure that the software is either covered by warranty or AMC for a contractual period of 5 years.

9.10.2 Year Number is to be filled as Year 1, Year 2, Year 3, Year 4, Year 5.

9.10.3 ATS / AMC charges during warranty period is to be filled as Zero.

9.11 Resources for ongoing support.

Table 9-31 AB RRB CBS Commercial Bid Format for Manpower resources provisioning (DC)

Sl. No

Description of system

Charges for Resource provisioning for ongoing support

Year No.

No. of Resources

Man month rate

Total costsBase component

Tax Component

1 Resources at DC for Hardware maintenance including Storage and Backup

2 Oracle DBS at DC3 Application Support

L2 at DCTotal

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Table 9-32 AB RRB CBS Commercial Bid Format for Manpower resources provisioning (DRC)

Sl. No

Description of system


Year No.

No. of Resources

Man month rate

Total costBase component

Tax Component

1 Resources at DRC for Hardware maintenance including Storage and Backup

2 Oracle DBA at DRC

Total

Note: Resources as detailed in the RFP are to be provisioned for a contractual period of 5 years.

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9.12 Summary of Cost and Total CostsTable 9-33 AB RRB CBS Commercial Bid Format - Consolidation

S. No.

Particulars Cost

Base component

Tax Component Total

1 Finacle Application Software Cost (Total of Items

2. Application Software Customization and implementation Charges

3 Handholding support at branches

4 Training

5 Hardware

6 Operating Systems

7 RDBMS

8 Recurring Costs –ATS for Finacle

9 Recurring Costs –ATS for RDBMS

10 Recurring Costs – AMC for Hardware

11 Recurring Costs – AMC for Workstations

12 Resources for Ongoing support

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Disaster Recovery Centre1 Hardware

2 Operating Systems

3 RDBMS

4 Recurring Costs –ATS for RDBMS

5 Recurring Costs – AMC for DRC Hardware

6 Recurring Costs – AMC for DRC Workstations

7 Recurring Costs – AMC and ATS

8 Resources for Ongoing support

T O T A L

Amount in words

Note:We Confirm that

The above quoted fee is the lump sum (fixed price) amount and any add on in any form will not be payable by the Bank for whatsoever reason. No out of pocket expenses will be paid over and above this price.

The fee includes all taxes, duties, levies, service tax, etc.,

The fee also includes the cost of deliverables for all the phases of the Project.

Bank will deduct the tax at source, if any, as per the law of the land.

Further, we confirm that we will abide by all the terms and conditions contained in the Request for Proposal document.

Authorized Signatory with Seal

Date:

Place:

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10 Payment Terms.

10.1 Payment Schedule

10.1.1 The following payment schedule would be followed for the supply of software and hardware.

Table 10-34 AB RRB CBS– Payment Terms.

Deliverables % of Payment Stages (On completion of activities to the Satisfaction of the Bank)

Finacle CBS licenses 90% Delivery of base version of software and execution of End User License Agreement

10% On completion of the warranty period or on production of bank guarantee for equivalent amount.

Oracle licenses 90% Delivery of base version of software and execution of End User License Agreement

10% On completion of the warranty period or on production of bank guarantee for equivalent amount.

Hardware 75% Delivery and installation of hardware, operating systems, and submission of invoice with proof of delivery and installation.

25% On commencement of live operations and on production of Bank guarantee for 10% of Hardware cost covering warranty period.

If Bank Guarantee is not furnished, the vendor can claim 10% of the hardware cost only on completion of warranty period.

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10.2 Project Implementation Costs.

10.2.1 The following payment schedule would be followed for providing Training and one time implementation services.

Table 10-35 AB RRB CBS– Payment Terms – Project Implementation Costs.

Deliverables % of Payment Stages (On completion of activities to the Satisfaction of the Bank)

Training 100% Will be paid as and when each batch of training is completed and e-learning materials are provided on a CD

Customization 50% of Customisation charges

15 days after first pilot branch roll out and acceptance by Bank.

25% of Customisation charges

After successful completion of roll out in 50% of branches subject to sign off by both parties agreeing completion of Customisation.

25% of Customisation and implementation charges

One month after successful completion roll out in 25 pilot branches and acceptance by Bank.

Implementation 35% of implementation charges

15 days after first pilot branch roll out and acceptance by Bank.

35% of Customisation charges

After successful completion of roll out in 50% of branches

30% of implementation charges

After successful completion of roll out in 100% of branches

Data uploading services To be assessed on monthly basis and shall be paid monthly in arrears subject to completion of the respective task and acceptance by Bank.

Handholding support charges

To be assessed on monthly basis and shall be paid monthly in arrears subject to completion of the respective task and acceptance by Bank.

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10.3 Project Life cycle Costs

The following payment schedule will be followed for the project life cycle ( on going support)

Table 10-36 AB RRB CBS– Payment Terms – Project Life Cycle Costs

Services Coverage Stages (On completion of activities)

Annual Technical Support Software, RDBMS1. On signing the relative contract, quarterly in

advance against a financial guarantee for 25% of ATS / AMC Charges or the amount shall be payable in arrears quarterly (within 30 days from the end of relevant quarter or on submission of claim whichever is later).

2. Financial Guarantee for the entire year may be submitted to draw quarterly payments

Annual Maintenance Contract

Hardware and Operating System, Tools

Resources for ongoing support

All other charges and recurring Costs

The amount shall be paid in arrears quarterly within 30 days from the end of relevant quarter or on submission of claim whichever is later

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10.4 Procedure for Claiming Payments

10.4.1 The following process should be followed for claiming payments:

10.4.2 The bidder shall submit payment claims to Bank in writing accompanied by Original Invoice detailing the Hardware systems, software delivered, installed and accepted.

10.4.3 The payments for all undisputed amounts shall be made within 30 days of valid claims that are supported by invoice, original Proof of Delivery (POD), installation and acceptance by bank as well as upon fulfilment of other conditions stipulated in the contract. The invoices and other documents are to be duly authenticated by the bidder.

10.4.4 On receiving each payment, the bidder shall submit a stamped receipt for the full payment received including TDS. The payment will be released centrally from Department of Information Technology, Head Office, Hyderabad, after deducting the applicable TDS. A TDS certificates would be issued for the TDS recoveries at the end of the respective Financial Year.

10.4.5 Any penalties / Liquidated damages payable by the Prime Vendor shall first be adjusted in the invoices before making Payments by the Bank.

10.4.6 Taxes as applicable in terms of proposed Finance Bill for the FY 2010-2011 are to be taken into consideration while assessing taxes. Any increase or decrease in Taxes would be passed on to the Bank.

10.4.7 Octroi charges wherever applicable will be reimbursed by the Bank on production of proof of payment in original.

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11 Eligibility Criteria

11.1.1 Firms meeting the eligibility criteria as described in the following sections will be considered for evaluation.

11.1.2 The Bank reserves the right to change or relax the eligibility criteria to ensure inclusivity.

11.2 Eligibility of Bidders

11.2.1 The bidder should not be an individual/ proprietary / HUF etc. The bidder may be a government organization/ Public sector unit/ Partnership firm / Limited Company/ Private Limited Company having its Registered Office in India. Relevant documents of the same are to be submitted

11.2.2 The bidder organization should have been in existence for and must be engaged in the business of integration of IT Projects for at least 3 years as on December 31, 2009 in India. Related document should be submitted as part of the proposal with special reference to Banking clients.

11.2.3 The bidder should have a minimum turnover of INR 200 Crores per year in the last three years from IT segment of the company. The bidder must warrant financial solvency, i.e. able to meet all the debts as and when they fall due.

11.2.4 The bidder should have made profits in succession for the past 3 years (FY ending March 2007 - FY ending March 2009). The relevant documents including Balance Sheet/Profit and Loss Account/Certificate from Statutory Auditors certifying the financials are to be submitted as part of the proposal

11.2.5 The bidder must warrant that there are no legal actions being taken against it for any cause in any legal jurisdiction. If such an action exists and the bidder considers that it does not affect its ability to deliver the requirements as stated in this RFP, an undertaking specifying the nature of the legal action and the reasons why this shall not affect the bidder’s ability to deliver shall be provided.

11.2.6 The Bidder should not have been black-listed by any Public Sector Bank, RBI or IBA or any other Government agencies. Bidder must certify to that effect.

11.2.7

11.3 Experience of the Bidder in implementing Core Banking Solutions

11.3.1 The bidder should have previous experience in the supply, installation and maintenance of Finacle Core Banking Solution either one Public Sector Bank or a Private sector Bank or a Regional Rural Bank ( with > 200 branches roll out to CBS)

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11.3.2 The bidder should have previous experience in implementation and maintenance of Unix based three tier architecture (Web, Application Database servers) for CBS implementation in any Public or Private sector Bank or Regional Rural Bank ( with > 200 branches roll out to CBS)

11.3.3 The bidder should be an OEM for the hardware proposed for CBS implementation or authorized by OEM to provide such hardware and maintenance support under warranty / AMC. The OEM should provide an authorization letter undertaking to abide by the purchase terms agreed by the bidder.

11.3.4 The bidder should have previous experience implementation and maintenance of Oracle RDBMS for Core Banking Solution in a Public Sector or Private sector Bank or Regional Rural Bank ( with > 200 branches roll out to CBS)

11.3.5 The Bidder should furnish reference Banking Client

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12 Evaluation Process

12.1 Objective of Evaluation Process

12.1.1 The objective of the evaluation process is to evaluate the bids to select an effective solution at a competitive price.

12.1.2 Through this Request for Proposal, Bank aims to select a Vendor for the implementation of Core Banking Solution in Andhra Bank sponsored RRBs. The Bidder shall be entrusted with end-to-end responsibility for the execution of the project under the scope of this RFP and has to work in coordination with Network Service Provider. The Bidder is expected to commit for the delivery of services with performance levels set out in this RFP with a Service Level Agreement.

12.1.3 The Bank has adopted a two bid process in which the Bidder has to submit (1) Technical Bid and (2) Commercial Bid separately but at a time as stipulated

12.1.4 The Bank shall evaluate the Technical Bids initially and based on Technical Bid evaluation shall undertake Commercial Bid evaluation of the proposals qualified Technical Bid Evaluation.

12.1.5 The evaluation by the Bank will be undertaken by a Committee of Officials and Consultants formed by Bank and its decision is final

12.2 Technical Bid Evaluation Process

12.2.1 The Core Banking Solution implementation involves various components including supply and implementation of Application Software, Hardware, RDBMS, Training, Data Migration, Implementation Services, Roll out of the CBS and support services. Hence the proposal submitted by the Bidders shall be evaluated on technical grounds covering various components of the projects as follows:

Functional requirements

Technical and Solution requirements

Structured walk through

Past Experience

Vendor Presentation & Approach and Methodology

12.2.2 All the above components are having weighted scores as explained in subsequent sections which will add to 100 against which a Bidder’s proposal has to score a minimum of 70 (duly meeting component minimum requirements) for considering the proposal for the Commercial evaluation

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12.2.3 The scoring methodology for technical bid components is explained in the following paragraphs of this section.

12.3 Scoring Methodology for Functional Requirements

12.3.1 The bidder has to furnish responses in detail for every point in Chapter 4.

12.3.2 The responses are to be furnished duly mapping details in Finacle Product document. The customisation if needed. The replies are to be furnished by way of a detailed xls document.

Table 12-37 AB RRB CBS – Functional specifications mapping document for Technical Bid evaluation

Point No. Detail from RFP

Mapping with Finacle document – Meeting the requirement

% readily met through product configuration

Customisation requirements

% met through customisation / work around

(1) (2) (3) (4) (5) (6)

12.3.3 The bidder has to furnish responses to all points without fail. The points skipped in the response document will be treated as not met either through product basic configuration or customisation and will be awarded “Zero” marks.

12.3.4 The marks will be given duly according appropriate weightage for above two categories (4) and (6).

12.3.5 The evaluation will be done based on desktop evaluation.

12.4 Scoring Methodology for Technical and Solution Requirements

12.4.1 The Technical requirements cover the Hardware proposed as part of the solution.

12.4.2 The solution requirements cover the General Solution Architecture of the CBS that is to be provided as a part of the solution.

12.4.3 Bidder should clearly specify the detailed configuration and specifications of the hardware required at various levels of performance and supply a detailed Bill of Materials (BoM) with the part numbers for the hardware based on the technical requirements.

12.4.4 The Bidder should clearly specify the detailed solution architecture.

12.4.5 The hardware should be scalable to support the numbers specified as a part of the Master document.

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12.4.6 The Scoring for Technical and Solution requirements would be based on the response provided by the Bidder

12.4.7 The Sizing Booklet that is provided as a part of the response as described in Section ------ would also be considered for evaluation. The Bidder should cover the following as a part of the Sizing Booklet.

12.4.8 The Bidder’s interpretation of the Bank’s requirements and translating them as parameters for sizing the system will be rated based on the hardware sizing documentation.

12.4.9 The scores will also be dependent on the explanation given on how conclusions are made about the response time, performance of systems in terms of TPS, concurrent sessions, concurrent users etc.

12.4.10 The scores will also take into consideration the supporting documents, performance estimation reports on equivalent hardware and similar environment.

12.4.11 The hardware sizing documentation should be exhaustive with details application-wise, system-wise, providing for the entire range of hardware required, substantiated with the product literature, performance estimation reports and duly relating with the information provided for hardware sizing.

12.4.12 The Bidder would be invited to the Bank to make an exclusive presentation detailing the Total Solution Sizing which would be evaluated by a competent Panel.

12.4.13 The Bank at its discretion may reject the proposal of the Bidder without giving any reason whatsoever, if in the Bank’s opinion, the Solution Sizing was not made appropriately to meet the performance criteria as stipulated by the Bank

The Bidder should score a minimum of 80% in Technical and Solution Requirements.

12.5 Scoring Methodology for Structured Walkthrough

12.5.1 The Bidder is required to arrange for a Structured Walkthrough of the solution offered in response to RFP in a place where all the functionality can be demonstrated to the satisfaction of the Bank’s team including Non-ATM delivery channels.

12.5.2 During the structured walkthrough, the Bank may seek explanations on various technical and other requirements.

12.5.3 The cost for set up for the structured walkthrough will be borne by the Bidder and the Bank will bear the expenses incidental to attending the Structured Walkthrough by the Bank’s team and its consultants.

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12.5.4 Each question in the questionnaires prepared by Bank would be verified by the officials of the Bank and appropriately record the responses. Any workarounds suggested by the bidder for functionality may be considered by Bank personnel and details recorded.

12.5.5 Additionally the Bank team will verify the overall functionalities and technical architecture of the proposed solution and record the observations.

12.5.6 The responses provided by the Bidder in response to functional and technical requirements of RFP will also be verified and marked during the structured walkthrough process.

12.5.7 The Structured Walkthrough Questionnaires would be released to the Bidder’s after preliminary scrutiny of the technical bids, post RFP submission. The dates would be indicated at the appropriate time.

12.5.8 The structured walkthrough questionnaires for each of the Bidders will be dependent on the solution proposed by them.

12.5.9 The Bank at its discretion may reject the proposal of the bidder without giving any reason whatsoever, if in the Bank’s opinion, the bidder could not present or demonstrate the proposed solution as described in the proposal.

The bidder is expected to score a minimum of 80% score in Structured Walkthrough.

12.6 Scoring Methodology for Past experience

12.6.1 A Committee of people from the Bank would carry out Reference Site Visits and/or Telephonic interviews with the existing customers of the Bidder. The inputs that have been received from the Customer would be considered by the Bank and this might not need any documentary evidence. This rating would be purely on the inputs provided by the Bidders customers.

12.6.2 The scoring would be relative among the bidders.

12.6.3 The Bank at its discretion may reject the proposal of the Bidder without giving any reasons whatsoever, in case the responses received from the Site Visits are negative.

12.7 Scoring Methodology for Vendor Presentations

12.7.1 As an evaluation process, the Bidders will be invited to Bank to deliver a presentation on the Solution that is proposed.

12.7.2 The Bank will propose the structure for each of the Bidders based on the information required from the concerned Bidders.

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12.7.3 The presentations would be rated by a competent panel chosen appropriately by Bank and scores would be assigned to each of the presentation. The details of the presentations and the contents to be covered would be published and intimated by Bank prior to the presentations.

12.7.4 The “Approach and Methodology” adopted for the Implementation would also be evaluated by the Bank duly supplemented through this presentation and would at the minimum cover

Data Migration

Training

Team Strength

Project Management for CBS roll out.

Data Migration

12.7.5 The quality of the Bidder’s Data Migration procedure shall form an integral part of the final evaluation and selection of the Bidder.

12.7.6 The bidder has to furnish a detailed write up on Data migration methodology and their understanding of the work in scope.

Training

12.7.7 The bidder has to furnish a document detailing the trainings that are envisaged in the scope of the document besides Finacle Core Team Training which is to be undertaken by M/s Infosys. The other trainings to include training on Hardware, Help desk etc.

Team Strength

12.7.8 The Bidder has to furnish a document detailing Team Strength for CBS projects together with profiles of team members experienced in CBS roll out and their availability to Bank’s project.

12.7.9 The Bidder should ensure that the people above the role of the Team Lead who are proposed for this project should have worked on projects in Indian Banks earlier.

Project Management

12.7.10 It is also expected that the Bidder gives an elaborate Project Management template covering each of the activities and the implementation schedule as per the “Pilot Implementation” details provided in this document.

12.7.11 The Bidder should provide explanation on the Project Management process that is proposed for the Bank including details of how the same was applied in a similar project

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12.8 Consolidated Score in Technical Bid Evaluation

12.8.1 The Consolidated Technical Bid Evaluation Score (TEVS) would be a composite of the following scores:

Table 12-38 AB RRB CBS – TEVS Weightage Distribution

Scoring Parameter Weighted Score Minimum Percentage for Technical Qualification

Functional Requirements (FR) WTFR = (Bidder Score in FR /FR)*25

65% Overall

Technical and Solution Requirements (TSR)

WTTSR = (Bidder Score in TSR /TSR)*20

80%

Structured Walkthrough Scoring (SW)

WTSW = (Bidder Score in SW /SW)*30

80%

Past Experience (PE) WTPE = (Bidder Score in PE /PE)*10

NA

Vendor Presentations (VP) WTVP = (Bidder Score in VP /VP)*15

NA

Total TEVS = 100 70%

12.8.2 FR, TSR, SW, PE, VP and AM denote the maximum score possible for each of the corresponding sections

12.8.3 The final Technical Evaluation Score shall be calculated as following:

TEVS = WTFR + WTTSR + WTSW + WTPE + WTVP

12.9 Disqualification Parameters in Technical Bid Evaluation

12.9.1 As indicated in 12.2.2 , a minimum percentage has been defined for technical qualification for certain parameters. Bidders whose solutions do not meet the minimum percentages required in those parameters would not be considered for further evaluation.

12.9.2 The Bids which do not meet the stipulated criteria on 70% TEVS will not be considered for commercial evaluation

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12.9.3 The Bank at its discretion may reject the proposal of the Bidder without giving any reason whatsoever, if in the Bank’s opinion, the Solution Sizing was not made appropriately to meet the performance criteria as stipulated by the Bank

12.9.4 The Bank at its discretion may reject the proposal of the Bidder without giving any reasons whatsoever, in case the responses received from the Site Visits are negative.

12.10 Commercial Bid Evaluation

12.10.1 The Bids which are Technically qualified would be considered for Commercial Bid evaluation.

12.10.2 The Total Cost for a period of 5 years for each of the Bidders will be arrived at based on the Commercial Bid format

12.10.3 The Bank shall scrutinize the commercial bids and normalize the same if found necessary before comparing the bids

12.10.4 The Commercial Bid will be evaluated based on the Cost that has been proposed by the Bidder in the Commercial Bid.

12.10.5 The Technically Qualified bidder with the lowest Commercial Bid after scrutiny and normalization would be declared as L1.

12.10.6 In case of a Tie between two or more Bidders for considering L1, the Bid with higher TEVS would be chosen at the discretion of the Bank

12.10.7 The L1 bidder shall not automatically qualify for becoming selected Bidder and for award of contract by the bank.

12.10.8 The Bank shall negotiate with L1 Bidder and in case the cost of L1 is found to be high and not acceptable to the Bank, the Bank reserves the right to reject the L1 Bidder and re-tender.

12.10.9 The Bank shall not incur any liability to the affected bidder on account of such rejection.

12.10.10 The Bidder whose commercial bid is accepted will be referred to as “Selected Bidder” and the Bank will notify the name of the Selected Bidder

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13 Bid Submission

13.1 General Terms of Bid Submission

13.1.1 The offers should be made strictly as per the formats enclosed.

13.1.2 The Bidder should bear all the costs associated with the preparation and submission of their bid and Bank will in no case be responsible or liable for these costs, regardless of the conduct or outcome of the bidding process.

13.1.3 Two copies of the bid are to be submitted, one in original and the other in copy.

13.1.4 The bid should be signed by the Bidder or any person duly authorized to bind the bidder to the contract. The signatory should give a declaration and through authenticated documentary evidence establish that the person is empowered to sign the tender documents and bind the bidder. All pages of the tender documents except brochures if any are to be signed by the authorized signatory.

13.1.5 The offers submitted to Bank should preferably not bear any corrections, alterations, over writings and additions. In such cases, the person/s singing the bid should initial such corrections.

13.1.6 The Bidder is expected to examine all instructions, forms, terms and conditions and technical specifications in the Bidding Documents. Failure to furnish all information required by the Bidding Documents or submission of a bid not substantially responsive to the Bidding Documents in every respect will be at the Bidder’s risk and may result in rejection of the bid.

13.1.7 No columns of the tender should be left blank. Offers with insufficient information and Offers which do not strictly comply with the stipulations given above, are liable for rejection.

13.1.8 Bank may accept or reject, in full or in part, any or all the offers, without assigning any reason whatsoever.

13.1.9 Bank may at its discretion abandon the process of the selection of IS Auditor anytime before notification of award.

13.1.10 The bids will be opened in the presence of authorized representatives of the bidders. However, the representative of the bidder has to produce an authorization letter from the bidder to represent them at the time of opening of Technical/Commercial bids. Only One representatives will be allowed to represent any bidder. In case the bidder’s representative does not present at the time of opening of bids, the quotations/bids will still be opened at the scheduled time at the sole discretion of the Bank.

13.1.11 The bidder must use the entire information furnished in the RFP including scope, detailed requirements of audit of application and other terms and conditions, while submitting the response.

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13.1.12 All responses should be in English language. All responses by the Bidders to this RFP document shall be binding on such Bidders for a period of 180 days from the date of opening the Technical Bid.

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

13.1.14 Bidders are advised to attach a letter from an authorized signatory attesting the veracity of the information provided in the response.

13.1.15 Any technical or commercial bid submitted cannot be withdrawn / modified after the closing date and time for submission of the bid offers unless specifically permitted by Bank. However, the Bidder may modify or withdraw its offer after submission provided that, Bank, prior to the closing date and time receives a written notice of modification or withdrawal.

13.1.16 Bank concludes that everything as mentioned in the RFP documents circulated to the Bidders and responded by the Bidders have been quoted for by the Bidders and there shall be no extra cost associated with the same other than the cost quoted by the Bidder.

13.1.17 In the event, Bank has not asked for the quotes for alternative price.

13.2 Cost of Bid

13.2.1 The Bidder is required to submit a Demand Draft amounting to Rs.25,000 in favour of Andhra Bank along with the bid. This is to be submitted in a separate envelope along with the Bid response. This amount is not refundable.

13.3 Earnest Money Deposit (EMD).

13.3.1 The Bidder is required to deposit of sum of Rs.10,00,000/- (Rupees Ten Lakhs only) in the form of a Demand Draft / Banker’s Cheque / Pay order in favour of ‘Andhra Bank’ payable at Hyderabad as Earnest Money Deposit. The bidder may however submit a Bank Guarantee for 180 days issued by a Scheduled Commercial Bank in lieu of EMD by way of Demand Draft / BC. Format of Bank Guarantee is provided.

13.3.2 The EMD is to be submitted as part of the Technical Proposal.

13.3.3 No interest will be paid on the EMD.

13.3.4 The EMD (bid Security) / Bank Guarantee of successful Bidder shall be refunded after furnishing performance Guarantee as required by the Bank.

13.3.5 EMDs / Bank Guarantees furnished by all unsuccessful Bidders will be returned on the expiration of the bid validity / finalization of successful Bidder, whichever is earlier.

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13.3.6 The EMD made by the bidder will be forfeited if:

13.3.6.1 the bidder withdraws his bid before opening of the bids.

13.3.6.2 the bidder withdraws his bid after opening of the bids but before acceptance of “Letter of Intent” or “Purchase Order”.

13.3.6.3 the selected bidder withdraws his bid / proposal before furnishing an unconditional and irrevocable Performance Bank Guarantee.

13.3.6.4 the bidder violates any of the provisions of the terms and conditions of the RFP in the process of evaluation and upto submission of Performance Bank Guarantee.

13.3.6.5 Failure to accept the order by the Selected Bidder within seven days from the date of receipt of the order makes the EMD liable for forfeiture at the discretion of Bank. However Bank reserves its right to consider at its sole discretion the late acceptance of the order by selected Bidder.

13.3.6.6 Failure to submit the Performance Guarantee with in stipulated period from the date of execution of the contract makes the EMD liable for forfeiture. In such instance, Bank at its discretion may cancel the order placed on the selected Bidder without giving any notice..

13.3.6.7 The Performance Bank Guarantee is to be furnished for a sum equivalent to 10% of the Contractual value covering the entire contractual period.

13.4 Two Stage Bidding Process

13.4.1 For the purpose of selection of the Vendor for implementing Core Banking Solution in the Regional Rural Banks sponsored by Andhra Bank, a two-stage bidding process will be followed.

13.4.2 The response to the present tender is to be submitted in two parts, i.e. the Technical Bid and the Commercial Bid. The bidders will have to submit the ‘Technical Bid’ separately from the ‘Commercial Bid’.

13.4.3 The bidder has to submit their response in hardcopy and softcopy in Microsoft Office document formats for Technical Bid and Commercial Bid.

13.4.4 The ‘Technical Bid’ will contain the exhaustive and comprehensive details of approach, methodologies to be followed, assertions, documents and any other collateral the Bidder would want to submit to the Bank.

13.4.5 The ‘Commercial Bid’ will contain the pricing information alone.

13.4.6 The Technical Bid should NOT contain any pricing or commercial information at all. Any bids violating this will be summarily rejected and the bids shall be disqualified from further evaluation.

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13.4.7 In the first stage, only the ‘Technical Bids’ will be opened and evaluated. Those bidders satisfying the technical requirements of the solution, as determined by Andhra Bank and as per the requirements/specifications and the terms and conditions of this document, shall be short-listed.

13.4.8 Under the second stage, the Commercial Bids of bidders which have been short-listed earlier on the basis of evaluation of their Technical Bids, will only be opened.

13.4.9 Bank may call for any clarifications/ additional particulars required, if any, on the technical/ commercial bids submitted. The vendor has to submit the clarifications/ additional particulars in writing within the specified date and time. The bidder’s offer will be disqualified, if the clarifications/ additional particulars sought are not submitted within the specified date and time.

13.4.10 Bank reserves the right to call for a presentation on the features etc., from the short-listed bidders based on the technical bids submitted by them to make an evaluation.

13.4.11 The commercial bid should contain quotation for end-to-end CBS implementation services as envisaged in the Scope of the RFP.

13.4.12 Bidders must acquaint themselves fully with the conditions of the bids. No plea of insufficient information will be entertained at any time.

13.5 Sealing and Marking of Bids

13.5.1 The offer should be submitted in two separate sealed covers containing Technical (Technical Bid) and Commercial (Commercial Bid) Proposals super scribed with “Selection of the Vendor for implementing Core Banking Solution in the Regional Rural Banks sponsored by Andhra Bank” and “Selection of the Vendor for implementing Core Banking Solution in the Regional Rural Banks sponsored by Andhra Bank – Commercial Bid”.

13.5.2 The sealed covers containing the Technical offer and the Commercial offer should in turn be put in a sealed outer envelope to be super-scribed as “Technical and Commercial offers for providing Core Banking Solution for RRBs sponsored by Andhra Bank”.

13.5.3 The envelope containing Technical Offer should include only Bidder’s Profile (as per enclosed format), Relevant Technical Bid Forms and Standard Printed Technical Literature/Brochure in support of the Technical bid submissions.

13.5.4 The envelope containing Commercial Offer should include only the commercial quote for the Core Banking Solution implementation for RRBs as per the formats provided in relevant sections. Please note that no other information other than the price should be furnished along with this offer.

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13.6 Commercial Bid

13.6.1 The commercial bid should be enclosed in a separate sealed envelope. Cost figures should be presented separately for each of the line items.

13.6.2 The Bidder to quote in Indian Rupees only and bids in currencies other than INR would not be considered.

13.6.3 The prices and other terms offered by Bidders must be in force for a period of 180 days from the date of opening of the commercial bid.

13.6.4 All costs should be inclusive of all taxes, duties, charges and levies of State or Central Governments, as applicable, at the date of signing the Agreement and subject to deduction of all statutory deductions applicable, if any. The benefits realized by Bidder due to lower rates of taxes, duties, charges and levies shall be passed on by Bidder to Bank.

13.6.5 Any additional expenses incurred by the Bidder due to increase in taxation, duties, charges and levies, the same shall be reimbursed to the Bidder on production of satisfactory proof.

13.6.6 The Bidder has to include all costs like Travel, Lodging & Boarding, Local Travel expenses, etc incurred during the entire period of the Project and Bank will not bear any additional costs on these.

13.6.7 The prices quoted by the Bidders shall include all costs such as Taxes, Service Taxes, VAT, Levies, Cess, Insurance, etc. that need to be incurred.

13.6.8 Terms of payment shall be finalized with the selected bidder and milestone based payments shall be made to the selected bidder, on completion of such milestones to the satisfaction of the Bank.

13.7 Bid Submission

13.7.1 Bidders are not permitted to submit more than one bid.

13.7.2 The cost of bidding and submission of the bids is entirely the responsibility of the Bidders, regardless of the conduct or outcome of the tendering process.

13.7.3 Bids sealed in accordance with the Instructions to bidders should be delivered as mentioned in the Bid schedule. Bids may be sent by registered post or hand delivery, so as to be received at the address given above in the tender schedule.

13.7.4 Receipt of the bids shall be closed as mentioned in bid schedule. Bids received after the scheduled time will not be accepted by the Bank under any circumstances.

13.7.5 The technical bids will be opened as mentioned in bid schedule.

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13.7.6 Bank will not be responsible for any delay due to postal service or any other means.

13.7.7 The bidders or their authorized representatives shall be present at the time of the opening of the technical bid. Only one person per bidder will be allowed to be present at the time of the opening the technical bids. No bid shall be rejected at bid opening, except for late bids and those that do not conform to bidding terms.

13.8 Clarifications on the Tender Documents

13.8.1 Written requests for clarification may be submitted to the Bank before the date stipulated for receipt of such queries.

13.8.2 Form should preferably be emailed to the Bank or provided by softcopy – in either event hardcopy confirmations are to be submitted with the Bid documents.

13.8.3 The queries and clarifications wherever necessary shall be placed in Bank’s web-site under Tenders column.

13.9 Amendments to Tender Documents

13.9.1 Amendments to the Tender Document may be issued by the Bank for any reason, whether at its own initiative or in response to a clarification requested by a prospective bidder, prior to the deadline for the submission of bids.

13.9.2 The amendments will be posted on Bank’s web site and will be binding on all the bidders.

13.9.3 From the date of issue, amendments to Terms and Conditions shall be deemed to form an integral part of the RFP.

13.9.4 Further, in order to provide, prospective Bidders, reasonable time to take the amendment into account in preparing their bid, the Bank may, at its discretion extend the deadline for submission of bids.

13.10 Correction of Errors

13.10.1 Arithmetic errors in the Bids submitted shall be treated as follows:

Where there is a discrepancy between the amounts in figures and in words, the amount in words shall govern; and

Where there is a discrepancy between the unit rate and the line item total resulting from multiplying the unit rate by the quantity, the unit rate will govern unless, in the opinion of the Bank, there is obviously a gross error such as a misplacement of a decimal point, in which case the line item total will govern.

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Where there is a discrepancy between the amount mentioned in the bid and the line item total present in the Commercial Bid, the amount obtained on totaling the line items in the Commercial Bid will govern.

The amount stated in the tender form, adjusted in accordance with the above procedure, shall be considered as binding, unless it causes the overall tender price to rise, in which case the bid price shall govern.

13.11 Confidentiality

13.11.1 Bidder agrees that all information gathered from the Bank including oral enquires, letters, documents, emails, presentations, interactions, technical documentation, discussions with Bank’s service providers and documents gathered from Bank’s service providers etc. related to the Bank’s business and other information identified as confidential by the Andhra Bank are confidential information of Bank.

13.11.2 Unauthorized disclosure of any such confidential information will amount to breach of contractual terms and in such cases Bank may pre-maturely terminate the contract and initiate any legal action as deemed fit.

13.12 Indemnification

13.12.1 The Bidder shall, at their own cost and expenses, defend and indemnify the Bank against all third-party claims including those of the infringement of Intellectual Property Rights, including patent, trademark, copyright, trade secret or industrial design rights, arising from use of the Products or any part thereof in India.

13.12.2 The Bidder shall expeditiously meet any such claims and shall have full rights to defend itself there from. If the Bank is required to pay compensation to a third party resulting from such infringement, the Bidder shall be fully responsible therefore, including all expenses and court and legal fees.

13.12.3 The Bidder shall also be liable to indemnify the Bank, at its own cost and expenses, against all losses/damages, which the Bank may suffer on account of violation by the Bidder of any or all national/international trade laws, norms, standards, procedures etc.

13.13 Notification of Award

13.13.1 The acceptance of a bid will be communicated in writing at the address supplied by the Bidder in the bid response. Any change of address of the Bidder, should therefore be promptly notified to the Assistant General Manager, Department of Information Technology, Andhra Bank, 3rd Floor, D-Block, Cyber Gateway, Hitec City, Hyderabad.

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13.14 Signing of Contract

13.14.1 The Bidder shall be required to enter into a contract with Andhra Bank, within 15 days of the award of the tender or within such extended period, at the discretion of the Bank.

13.15 Jurisdiction

13.15.1 All disputes and differences of any kind, whatsoever, arising out of the audit propositions shall be referred by either party (the Bank or the Bidder), after issuance of 30 days notice in writing to the other, clearly mentioning the nature of the dispute / differences, to a single arbitrator, acceptable to both the parties, for initiation of arbitration proceedings and settlement of the dispute/s and difference/ strictly under the terms and conditions of this contract, executed between the Bank and the Bidder. The arbitration shall be governed by the provisions of the applicable Indian Laws. The award shall be final and binding on both the parties. The venue for arbitration shall be at Hyderabad, India.

13.16 Other Terms and Conditions

13.16.1 This RFP document is the property of the Bank and this can not be copied or used in any other manner except for the purpose of responding to this tender notice or without written permission from the Bank.

13.16.2 All the documents submitted along with bids shall also become the property of the Bank and retained by the Bank unless otherwise specifically mentioned.

13.16.3 The bidder should mention whether he is having any contractual obligation presently with the Bank, its status and any conflict of interest has arisen in such contractual obligation.

13.16.4 The implementation methodology and business processes in the implementation of the Project will form the property of the Bank except for those for which Intellectual Property Rights are already established.

13.16.5 Selected bidder has to undertake not to hire, solicit, or accept solicitation for their employees directly involved in this contract during the period of the contract and one year thereafter, except as the parties may agree on a case by case basis.

13.16.6 Besides penal provisions, Bank reserves the right to terminate the contract, if the work is not progressing according to the agreed project plans and when the delay is attributable to the Bidder either directly or indirectly due to the failure of Proper Project Management.

13.16.7 Penal Provisions and right of termination is however subject to Force Majeure situation to be defined in the agreement.

13.17 Contact Details

13.17.1 The contact details for submitting the proposal is as follows:

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Primary Address

Sri V. Narasimha MurtyAsst. General ManagerAndhra BankDepartment of Information Technology, Cyber Gateway, 3rd Floor, “D” Block, Wing-1Hi-tech City, MadhapurHyderabad - 500 081: IndiaTel: 040-23122256Fax: [email protected]

Alternate Address:

Sri. Ajay GuptaAsst. General ManagerAndhra BankDepartment of Information TechnologyCyber Gateway, 3rd Floor, “D” Block, Wing-1Hi-tech City, MadhapurHyderabad - 500 081: IndiaTel: 040-23122260Fax: 040-23122261Email: [email protected]

13.18 Evaluation Schedule

13.18.1 The proposed evaluation schedule is tabulated below. However, the Bank, at its discretion can change the schedule assigning no specific reasons for the same.

13.18.2 Any other milestones will be communicated to the bidders in due course.

Table 13-39Evaluation Schedule

Activity Scheduled Dates

Date of issue of RFP in web-site 02nd March, 2010

Last Date for receipt of Queries 8th March 2010

Pre-bid Meeting 11th March 2010

Last Date for Bank’s response to Queries 13th March 2010

Last Date for receipt of RFP response 1400 hours on 26th Mach 2010

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Activity Scheduled Dates

Technical Bid Opening 1500 hours on 26th March 2010

13.18.3 Bids would be opened at Andhra Bank Department of Information Technology, Cyber Gateway, Hitec City, Hyderabad, if not specified by the Bank.

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Annexure - 1 Compliance Certificate

To,

The Assistant General Manager,Department of Information Technology, Andhra Bank, ‘D’ Block, Right Wing, 3rd Floor,Cyber Gateway, Hitec City,Hyderabad

Dear Sir,

Subject: Declaration and Acceptance of Terms and Conditions and Confirmation of offer

Ref: Andhra Bank Tender Ref No. 0666/35/2009-10/ dated --- for the implementation of Core Banking Solution in the Regional Rural Banks.

The details submitted in the this document are true and correct to the best of our knowledge and if it is proved other wise at any stage of execution of the contract, Andhra Bank has the right to summarily reject the proposal and disqualify us form the process.

We confirm having understood the entire bid process, contents of RFP with all its terms and conditions and undertake to abide by the terms and conditions. We have also understood that the Bank may add, alter, modify the terms and conditions and post the required information in its web-site under Tenders column and all such additions, modifications, alterations will form part of the RFP.

We hereby acknowledge and confirm having accepted that the Bank can at its absolute discretion apply whatever criteria it deems appropriate and fit, not just limiting to those criteria set out in the RFP, in short listing of bidder for implementation of Core Banking Solution in Andhra Bank sponsored RRBs.

We confirm having met all the criteria set out for Bidder’s eligibility including financial soundness. There is no legal action against our organization for any cause in any legal jurisdiction which will impose restrictions to the ability of the Bidder in carrying out its obligations under this RFP.

We confirm and warrant that key project personnel to be deployed in this project have been sufficiently involved in similar projects in the past.


Date:

Place:

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Annexure - 2 Bidder Profile

Description Details

The registered name of the Bidder

Bidder’s registered address

Bidder Address for Correspondence

Address:

STD- Phone:e-mail Id:FAX No:

Contact name of the official who can commit on the contractual terms and the name of an alternate official who may be contacted in the absence of the former

Primary Contact:Name:Designation:STD- Phone No:Mobile Phone :e-mail ID :

Alternate Contact:Name :Designation:STD- Phone No:Mobile Phone :e-mail ID :

Contact addresses if different from above

Business Structure

Constitution

Names of Directors

Organization Structure

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Description Details

Core Business of BidderBidder’s Organization has been in existence since (date) Bidder is engaged in IT integration projects since (month & year)

and Core Banking implementation for Banks since (month & year)

Names of the Banks where CBS implementation was undertaken by the Bidder

Name of the Bank Project start date

Projectend-date

Explain experience in Finacle CBS implementation:

Turnover of IT segment of the company over the past 3 years

2006-2007 Rs.2007-2008 Rs.2008-2009 Rs.

Authenticated Proof of revenue from IT is to be furnished.

Net Profit of the Organization for last 3 years

2006-2007 Rs.2007-2008 Rs.2008-2009 Rs.

Audited Balance-Sheet and Profit & Loss Account for last 3 years enclosed :

Bidders warrants financial solvency i.e., ability to meet all the debts as and when they fall due

(substantiate)

Bidder confirms that there are no legal actions / restrictions by any regulatory authority that would affect the ability to deliver audit deliverablesTotal Number of employees in IndiaNumber of employees who have worked on similar projects in India

Date:

Place: Authorized Signatory with Seal

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February 2010

Annexure - 3 Confirmation of Soft Copy

To

General Manager Andhra BankDepartment of Information TechnologyCyber Gateway, “D” Block, 3rd Floor, Wing-1Hi-tech City, MadhapurHyderabad - 500 081: India

Dear Sir,

Sub: Implementation of Core Banking Solution in Regional Rural Banks sponsored by Andhra Bank.

Further to our proposal dated XXXXXXX, in response to the Request for Proposal(Bank’s tender No. hereinafter referred to as “RFP”) issued by Andhra 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,

Authorized Signatory

Designation

Bidder’s corporate name

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February 2010

Annexure - 4 Credentials – Core Banking Solutions implemented by the Bidder.

Description Details

Name of the Bank

Project Location

Address of client

Current Status of the Project

Client contact person and contact details

Project start date

Duration of project

Project Closure Date

Scope of the Project (Software, Hardware, Network etc,)

Names of project staff


Date:

Place:

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February 2010

Annexure - 5 Team Profile

Please provide details of the Governance structure for the proposed team and provide details of the members of the Governance in the following format.

Description Details

Name of the member

Designation

Educational Qualification

Other Certifications/accreditations

Employment History

Total Banking Experience (no. of years, areas of experience)

Experience in similar projects (including client details, role of member, activities performed, duration of experience)


Date:

Place:

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February 2010

Annexure - 6 Project Plan and Resource Deployment

A Project plan similar to the illustrated plan needs to be provided by the Bidder.

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February 2010

Annexure - 7 Query Format

CBS implementation for Andhra Bank sponsored RRBs

Request for Clarification

To be mailed, delivered, posted, faxed or emailed to:

Assistant General Manager

-- address, email id and fax number given in the schedule

Name of Organization submitting request

Name & position of person submitting request

Full formal address of the organization including phone, fax and email points of contact

Tel:

Fax:

Email:

Please Tick preferred contact option

Section Number:

Page Number:

Point Number:

Query description

Section Number:

Page Number:

Point Number:

Query description

Section Number:

Page Number:

Point Number:

Query description

Name and signature of authorized person issuing this request for clarification

Signature/Date Official designation

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February 2010

Annexure - 8 Non – Disclosure Agreement Format

Strictly Private and Confidential

To, The General Manager, Andhra Bank, ‘D’ Block, Right Wing, 3rd Floor,Cyber Gateway, Hitec City,Hyderabad

Date

Dear Sir,

Confidentiality Undertaking

We acknowledge that during the course of the Engagement for ‘Implementation of ‘Core Banking Solution in Andhra Bank Sponsored Regional Rural Banks’ we shall have access to and be entrusted with Confidential Information. In this letter, the phrase "Confidential Information" shall mean information (whether of a commercial, technical, scientific, operational, administrative, financial, marketing, business, or intellectual property nature or otherwise), whether oral or written, relating to Andhra Bank / RRBs sponsored by Andhra Bank and their business that is provided to us pursuant to this Agreement.

In consideration of the bank making Confidential Information available to us, we agree to the terms set out below:

1. We shall treat all Confidential Information as strictly private and confidential and take all steps necessary (including but not limited to those required by this Agreement) to preserve such confidentiality.

2. We shall use the Confidential Information solely for the preparation of the Engagement and not for any other purpose.

3. We shall not disclose any Confidential Information to any other person or firm.

4. We shall not disclose or divulge any of the Confidential Information directly or indirectly to any other client of ours.

5. We shall seek the bank’s prior written consent to disclose the information, except in cases where such disclosure is required by any rule or requirement of law or any regulatory authority with which we are bound to comply

6. This Agreement shall not prohibit disclosure of Confidential Information:

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February 2010

i. To our employees who need to know such Confidential Information to assist with the Engagement and in the review processes

ii. To our professional advisers for the purposes of our seeking advice. Such professional advisors will be informed of the need to keep the information confidential.

7. This Agreement shall not apply to Confidential Information that:

i. Is in the public domain at the time it is acquired by usii. Enters the public domain after that, otherwise than as a result of unauthorized

disclosure by usiii. Is independently developed by us.

8. This Confidentiality Agreement shall continue for two years After the completion of the engagement unless and to the extent that the bank may release it in writing.

9. We acknowledge that the Confidential Information will not form the basis of any contract between the bank and us.

10. We warrant that we are acting as principal in this matter and not as agent or broker for any person, company, or firm.

11. We acknowledge that no failure or delay by the bank in exercising any right, power, or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise thereof or the exercise of any other right, power, or privilege.

12. This Agreement shall be governed by and construed in accordance with Indian laws and any dispute arising from it shall be subject to the exclusive jurisdiction of the Indian courts.

We have read this Confidentiality Undertaking carefully and confirm our agreement with its terms.

With kind regards

Yours sincerely

Authorised Signatory:

Name:

Title/position:

Date:

Company Seal:

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February 2010

duly authorised for and on behalf of

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February 2010

Annexure - 9 Write up on Products and Services of Chaitanya Godavari Grameena Bank.

Current Deposits.

Interest free operative account with cheque book facility with certain minimum balances To operate the account regularly and frequently without any restriction on number of

withdrawals or deposits. Can be opened by individuals, JHF, proprietary concern, partnership firms, private and

public limited companies, registered or unregistered clubs and associations, co-operative societies, Government Departments religious endowments, semi Government or local bodies, trusts, executors, administrators, liquidators, receivers, assignees

Accounts become inoperative if there are no transactions for 3 years and there are charges for inoperative account every year.

Nomination facility available. TOD can be allowed in some current accounts.

TOD in Current Accounts

It is a contra entry for the debit balance i.e., TODs allowed in current account. The balance will be shown both under assets and liabilities.

Credit Balances in OD and CC Accounts.

The credit balances in overdrafts and cash credit accounts will be reported here. Not entitled to receive any interest.

Overdue deposits.

A term deposit, which is neither renewed nor paid on its due date, is to be transferred together with interest to this account.

No interest is payable on overdue deposits except under certain circumstances as defined bank / RBI.

Full particulars of the term deposits like number, name of the depositor etc should be noted against the overdue deposit.

Saving Bank Accounts:

Operative account with cheque book facility with certain minimum balances. Eligible for interest at half yearly intervals on monthly minimum products maintained

between 10th and last day of the month. Can be opened by individuals / jointly with the name of the two or more persons, payable

to any of them or to the survivor or survivors or to all of them jointly. Can be opened and operated by minors also.

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Prohibited to open in the name of a trading / business concerns, government departments, bodies, agencies depending upon budgetary allocations for their functioning with certain exceptions.

Nomination facility available.

Nirbhaya Saving Bank

A savings bank account with accidental insurance facility with a maximum coverage of Rs.10,000/- by collecting premium as decided by the bank from time to time.

Individuals / two or more individuals in the age group of 10 to less than 70 years can open these account.

To maintain minimum balances in the account as decided from time to time. Nomination facility is available. Service charges (premium) is to be debited on the day of opening and on the 1st day of the

month in which the account is opened for every three years (i.e., premium is to be collected once in every three years)

Some percentage of the service charges goes to P & L which will be decided by the bank from time to time.

Eligible for interest at half yearly intervals on monthly minimum products maintained between 10th and last day of the month.

Nirbhaya Gold Savings Bank.

A savings bank account with accident insurance facility with a maximum coverage of Rs.100,000/- by collecting premium as decided by the bank from time to time.


To maintain minimum balances in the account as decided from time to time. Insurance year is 1st October to 31st August.Premium will be debited on the date of

opening and on 31st August every year. Nomination facility is available. Some percentage of the service charges goes to P & L which will be decided by the bank

from time to time. Eligible for interest at half yearly intervals on monthly minimum products maintained

between 10th and last day of the month.

Suraksha Saving Bank

A savings bank account with accidental insurance facility with a maximum coverage of Rs.25,000/- by collecting premium as decided by the bank from time to time.

Individual / two or more individuals in the age group of 10 to less than 70 years can open these accounts.

To maintain minimum balances in the account as decided from time to time. Nomination facility is available. Service charges (premium) is to be debited on the day of opening and on 31st October,

every year. Some percentage of the service charges goes to P & L which will be decided by the bank

from time to time. Eligible for SB interest (3.5%)

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Suraksha Gold Savings Bank.

A savings bank account with accident insurance facility with a maximum coverage of Rs.50000/- by collecting premium as decided by the bank from time to time.


To maintain minimum balances in the account as decided from time to time. Insurance year is 1st November to 31st October. Service charges (premium) is to be

debited on the day of opening and on 31st October, every year. Nomination facility is available. Some percentage of the service charges goes to P & L which will be decided by the bank

from time to time. Eligible for SB interest (3.5%)

No frills account

This scheme is introduced for total financial inclusion. Accounts can be opened with zero balance and there is no minimum balance restriction. Interest paid at 3.5% on the minimum balance maintained from 10 th to last day of the

month. Nomination facility available.

Temporary Overdrafts in SB group of Accounts

It is a contra entry for the debit balances i.e., TODs arised in savings bank accounts. It will be shown both under assets and liabilities.

Fixed Deposits

A fixed amount can be deposited for a specified period. Minimum amount of deposit is Rs.100 with no ceiling on maximum amount. Minimum period of deposit is 15 days and maximum period is 120 months with

automatic renewal facility and facility for premature cancellation. Standing instructions can be taken for disposal of interest. Loan facility is available upto 90% of the deposit amount. Deposits can be made by individuals, HUF, Proprietary concerns, partnership firms,

Limited Companies, Registered bodies, trusts, Government / Quasi Government departments.

TDS is applicable on interest as per IT Act. Nomination facility is available Rate of interest as applicable for different maturities ruling from time to time with 0.50%

extra payable to senior citizens and 1% extra for staff members.

Kalpalatha Deposits (KLD)

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February 2010

A reinvestment plan, where interest will be added to the deposit amount on quarterly basis.

Minimum amount of deposit is Rs.100 with no ceiling on maximum amount. Minimum period of deposit is 6 months and maximum period is 120 months and facility

for premature cancellation. Rate of interest as applicable for different maturities ruling from time to time with 0.50%

extra payable to senior citizens and 1% extra for staff members. Loan facility is available upto 90% of the accrued amount of deposit. Deposits can be made by individuals, HUF, Proparitory concerns, partnership firms,


TDS is applicable on interest as per IT Act. Nomination facility is available

TAX saver deposit:

A term deposit account from Income tax assesses to get exemption under section 80c of IT Act.

Deposit can be in the form of Fixed deposits with monthly / quarterly interest payment or Kalpalatha Deposits

Can be opened by Individuals or HUF, Income tax assesses with permanent account number either singly or jointly.

In case of joint account, exemption under Sec 80C shall be available only to the 1 st holder of the deposit.

To obtain the declaration from the depositor stating that the deposit amount under such scheme with various banks does not exceed Rs.100000/- under Sec 80c of IT act.

It is for a fixed period of 5 years. Minimum amount of deposit is Rs.100/- or multiples thereof with a maximum of

Rs.100000/- Rate of interest as applicable for different maturities ruling from time to time with 0.50%

extra payable to senior citizens and 1% extra for staff members. No deposit loan to be allowed or no lien to any other loan. No provision for premature cancellation. No nomination shall be obtained in case of minor.

Cash Certificates:

Odd amounts can be deposited (Issue price) for a fixed period to receive round amount (face value) on due date.

Deposit amount is accepted for face value of Rs.100 or Rs.1000 or multiples thereof All other features as applicable to Kalpalatha Deposits. Rate of interest as applicable for different maturities ruling from time to time with 0.50%

extra payable to senior citizens.

Recurring Deposits:

An affordable amount can be deposited monthly to receive a lump sum amount together with interest on due date.

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February 2010

Accounts can be opened by individuals (singly / jointly), clubs, proprietary concerns, partnership firms, companies associations, education institutions and other registered bodies for genuine saving purpose.

Minimum period of deposit is 6 month and in multiples of three months with a maximum period of 120 months with facility for premature cancellation.

Accounts are accepted in monthly installments with a minimum sum of Rs.5/- per month and multiples thereof.

Loan facility is available upto 90% of the deposit and interest accrued on it. Nomination facility is available.

Loans Against Deposits (LAD):

Demand loan allowed against the deposits of our bank, duly maintaining the lien. Loan is repayable in lump sum or installments. Loan will be allowed duly maintaining certain margin against the deposit amount. Deposit rate of interest + 2% will be charged as interest on loan. For staff, rate of interest

1% extra on deposit interest rate.

Loans Against KVPs,NSCs,LIC policies.

Loans allowed against security of NSCs / KVPs / LIC Policies / Government Securities. These loans may be allowed as demand loan or term loan. Repayment is 36 EMI for term loans and 2 years for demand loans. Amount of loan is certain percentage of the face value + accrued interest which is decided

by the bank and the percentage is different for different type of securities.

Loans Against Shares and Mutual funds.

Loans/Overdrafts will be sanctioned against shares and units of mutual funds which are actively traded, quoted in Stock Exchanges and should be included in the approved list of sponsor bank.

Loans Against Gold (Non agricultural) (NAGL):

Demand loan against the security of gold ornaments / jewellery to general public and staff members of the bank.

Eligible amount of the will be arrived basing on the fitness of the gold appraisal value, per gram lending rate. Per gram lending rate is decided by the bank from time to time.

Repayable in one year. Rate of interest is decided by the bank from time to time. Appraising charges, processing charges are applicable.

Clean Loans (CL)

Loans allowed to confirmed employees, preferably in public sector having a residual service of at least three years to meet any genuine credit requirement for personal purpose.

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February 2010

Loan amount will be arrived basing on the salary income. There is ceiling on loan amount (presently Rs.100000/-)

Net take home pay after deduction of installments of the proposed loan shall not be less than 40% of gross salary. EMI shall not exceed 30% of gross salary of the applicant.

Repayment is 36 EMI Guarantor from a good third party is obtained. Processing charges and administrative charges are applicable. Rate of interest is decided by the bank from time to time.

Loans against merchandise:

These loans will be allowed against pledge of farm products. This can be allowed to the traders only against central / state warehousing or market yard receipts.

The period of loan is 1 year. The stock should be insured for full value. Eligible crops are paddy, groundnut, chillies, cotton, turmeric and pulses. Maximum loan amount is Rs.10.00 lakhs with a margin of 50% of the market value. Collateral security of 200% of the loan is obtained.

Invoked Guarantees Paid:

Bank guarantee issued by bank and invoked by the beneficiaries are paid to the debit of this account.

These amount attract commercial rate of interest with penalty.

Personal Loans for consumer durables and motor vehicles.

Loans allowed for purchase of consumer durables like refrigerators, TV etc., and vehicles like car, motor cycle etc., to salaried persons, business people, professional & self employed and agriculturists.

For motor vehicle loan, amount of loan will be decided on the basis of gross annual income.

For loan amount of more than Rs.25000 collateral security is obtained. Third party guarantee is obtained.

Maximum repayment period is 60 EMI

Other Term Loans against Mortgage of property.

Loans allowed for investment needs like constructions of commercial complex, cinema halls, restaurants, hospitals etc., for good customers of the bank.

Quantum of loan is based on the repayment capacity of the applicant and collateral security. Repayment period is 60 EMI.

Collateral security worth 200% of the loan is obtained. Guarantee from third party is obtained.

All Staff Loans:

Term loans to staff of the bank to purchase consumer durables. Rate of interest is decided by the bank from time to time.

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Repayments are from salary deductions.

Housing Loans to staff:

Loans to staff of the bank to purchase or construction of houses / flats. Quantum of loan will be arrived basing on cost of construction / cost of the house or flat

and salary subject to repaying capacity subject to the ceilings fixed as per the cadre of the staff member

Rate of interest will be decided by the bank from time to time. Repayments are from salary deduction,.

Additional Housing Loans to Staff:

Loans to staff of the bank to purchase or construction of house / flats This loan is in addition to the housing loan sanctioned under concessional rate of interest. Repayments are from salary deductions.

Kisan Credit Cards

Short term loan under agricultural direct finance towards production credit for raising crops.

The limit is valid for 3 years. Account is to be brought credit or nil before 30 th June of every year after harvesting.

Account is to be revived every year. Eligible amount of loan will be arriving basing on scales of finance for both the crop

seasons and number of acers of cultivation. Rate of interest is decided by the bank from time to time. Interest subvention applicable for the loan accounts upto 31st March, for the accounts

disbursed in Kharif and upto 30th June for the accounts disbursed in Rabi seasons. Crop insurance as prescribed by National Agricultural Insurance Company from time to

time will be debited to accounts for eligible crops for Kharif and Rabi seasons. Processing charges and Administrative charges applicable for loan accounts of limit

grater than 25000/- Eligible for interest at SB rate on credit balances in the accounts. If Government declares anavari the eligible accounts will be converted to Medium Term

Loans (MTL) and transferred to CCMTL head. The borrowers are to be covered under personal accident insurance scheme. Nominal

insurance premium is to be debited to the accounts every year. Bank claims interest portion exceeding 3% (borrower bears upto 30 in the regular SHG

loan accounts from State Govt under Pavaddi scheme.

Rythu Mithra Groups:

Bank extend finance crop loans and also investment credits to RMGs which have homogeneous membership of only SFs / MFs / Lessees / Tenant Farmers / Share Croppers. Optimum number of members in a group is 15.

Quantum of loan: - upto a corpus to debt ratio of 1:20 can be considered keeping in view the requirement adequate credit for cultivation of crops and for investment credit.

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February 2010

All loans to notified crops are to be covered under National Agricultural Insurance scheme. Insurance premium is to be debited to the accounts

All members of RMG are to be covered under personal accident insurance scheme. Nominal insurance premium is to be debited to the accounts every year.

Interest subvention applicable as Kisan Credit Cards. All other guide lines of Kisan Credit Cards applicable. Interest subvention applicable for the loan accounts upto 31st March, for the accounts

disbursed in Kharif and upto 30th June for the accounts disbursed in Rabi seasons.

Joint Liability Groups:

The objective of the JLG is to augment flow of credit to tenant farmers cultivating land either as oral lessees or share croppers and small farmers who do not have proper title of their land holding through formation and financing of JLG.

A JLG is an informal group comprising preferably of 4 to 10 individuals coming together for the purposes of availing bank loan either individually or through group mechanism against the mutual guarantee.

Bank finance in two models Individuals in the group Total group

Purpose of the credit: The finance to JLG is expected to be a flexible credit product addressing the credit requirements of its members including crop production, consumption, marketing and other productive purposes.

Maximum loan amount may be restricted to Rs.50000/- per individual. No collateral security. Members of JLG are to be covered under personal accidental Insurance scheme. Crop loans to notified crops are to be covered under National Agricultural Insurance

Scheme.

Produce Loans:

These loans will be allowed to farmers against pledge of farm produce. In order to avoid distress sale by the farmers to meet the consumption needs and other family requirements the bank allow loans against pledge of farm produce. These loans are to be allowed only to farmers.

Out of the loan allowed under produce loans the existing Kisan Credit Card loan if any shall be brought to credit balance.

A margin of 50% is to be maintained at any point of time. Period of loan is 1 year from date of disbursement. The stocks should be insured for full value. Crops covered under this scheme are paddy, groundnut, chillies, cotton, turmeric and

pulses. Maximum amount of loan is Rs.10.00 lakhs for an individual. Collateral security obtained for loan above Rs.50,000.00.

Gold Loans Agricultural:

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February 2010

Demand Loan against the security of gold ornaments and jewellery for agricultural purpose.

Agriculture direct finance towards production credit Eligible amount of loan will be arrived basing on the fitness of the gold, appraisal value

per gram lending rate and linked to scales of finance. Repayable on or before 30th June. Rate of interest is decided by the bank from time to time. Appraiser charges are applicable. Re-Appraisal to be done once in two years for overdue

loan accounts and re-appraisal charges applicable. Processing charges applicable. Penal interest of 2% applicable for OD account with limits of grater than 25000/- Interest subvention applicable for the loan accounts upto 31st March, for the accounts

disbursed in Kharif and upto 30th June for the accounts disbursed in Rabi seasons.

Agricultural Term Loans (ATL)

Term Loan sanctioned for various agricultural purpose like Minor Irrigation Land Development Farm Mechanization Construction of Farm Buildings and Storage facilities like Godowns Development loans to Plantations, Horticulture, Forestry, Oil Palm,

cultivation etc., Hi-tech agricultural projects such as Floriculture, Agro Processing,

Tissue Culture, Mushroom Cultivation etc., Non conventional energy source like Biogas, Solar pump sets, wind

power etc Purchase of 2 wheeler / 4 wheeler under Rythu Chakra Scheme. Loans to unemployed Agril. Graduates under Agri clinic and agri

business center Land purchase scheme.

Unit cost, repayment schedule etc., prescribed by NABARD from time to time shall be followed. Applicant should contribute some margin.

There are different eligibility criteria and guidelines for different schemes depending on the activity of loans.

Collateral security needed for loan limit of grater than 50000. Third party guarantee obtained.

Processing charges, administrative charges applicable for limits grater than Rs.25000. Government sponsored loans exempted from charges.

For backend subsidy loan accounts interest to be charged on loan portion (net of subsidy) only.

Agricultural Allied Activities:

Term loan sanctioned for various purposes like; Dairy Poultry Sheep / Goat / Piggery / Rabbit rearing Aqua culture

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Seri culture Unit cost, repayment schedule etc., prescribed by NABARD from time to time shall be

followed. Applicant should contribute some margin. There are different eligibility criteria and guidelines for different schemes depending on

the activity of loans. Collateral security needed for loan limit of grater than Rs.50000. Third party guarantee

obtained. Processing charges, administrative charges applicable for limits grater than Rs.25000.

Government sponsored loans exempted from charges. For backend subsidy loan accounts interest to be charged on loan portion (net of subsidy)

only.

Indirect Finance to Agriculture

Loan sanctions upto 40 lakhs for distribution of fertilizers, pesticides distribution of inputs for allied activities such as cattle feed etc.,

Loans to electricity boards, PACS, FSS and LAMPS. Finance for hire purchase scheme for distribution of agricultural machines, implements. Construction and running of storage facilities (ware house, market yards etc.,) Cold storage units in rural areas. Finance to dealers in drip irrigation / Sprinkler irrigation etc.,

Small Scale Industries:

Bank extend most SSI entrepreneurs towards both term loans and working capital requirements upto Rs.1 crore

Any changes in definition of SSI by the Government / RBI will be announced from time to time.

Rate of interest is as decided by the bank from time to time. Repayable over fixed period of time Collateral security obtained. Third party guarantee obtained. Processing charges, Administrative charges applicable. Penal interest applicable for OD accounts. Bank can extend loan upto 50 lakhs without collateral security or third party guarantee

where 75% of the loan amount will be guaranteed by CGTMSE. Bank is to pay one time guarantee fee and annual service fee for the accounts sanctioned

and CGTMSE. Bank receive guaranteed loan portion from CGTMSE in case of default of loan accounts. For backend subsidy loan accounts interest to be charged on loan portion (net of subsidy)

only.

Transport Operators:

Advances to small road and water transport operators owning a fleet of vehicles, not exceeding 10 vehicles, including the one proposed to be financed. Only new vehicles are to be financed.

Repayment period is 36 to 84 EMI depending upon the repaying capacity of the borrowers.

Collateral security, 3rd party guarantee obtained.

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Rate of interest is as decided by the bank from time to time. Penal interest eligible for OD accounts. Processing charges, administrative charges applicable. For backend subsidy loan accounts interest to be charged on loan portion (net of subsidy)

only.

Retail Trade

Advance granted to private retail traders dealing in essential commodities (fair price shops) and consumer co-operative stores and other private retail traders with credit limits not exceeding Rs.10.00 lakhs

Credit facilities granted for acquiring premises or furniture / showcases and office equipment and for working capital requirements.


Collateral security, 3rd party guarantee obtained. Rate of interest is as decided by the bank from time to time. Penal interest eligible for OD accounts. Processing charges, administrative charges applicable. For backend subsidy loan accounts interest to be charged on loan portion (net of subsidy)

only.

Business Enterprises:

Loans extended to individuals and firms managing a business enterprise established mainly for the purpose of providing any service other than professional services whose original cost price of the equipment use for the purpose of business does not exceed Rs.20.00 lakhs without any restrictions on working capital limit.

Advances for acquisition construction renovation of house-boats and other tourist accommodation and distribution of mineral oils.

Purpose of Loans:- Credit facilities granted for purchasing of necessary equipment, repairing or renovating the existing equipment, acquiring or repairing the premises, purchasing tools and for working capital requirements.

Repayment is 36 to 60 EMI depending upon the repayment capacity of the borrowers. Collateral security, 3rd party guarantee obtained. Rate of interest is as decided by the bank from time to time. Penal interest eligible for OD accounts. Processing charges, administrative charges applicable. For backend subsidy loan accounts interest to be charged on loan portion (net of subsidy)

only.

Professional and Self Employed

Loans to professional and self-employed persons include loans for the purpose of purchasing equipment, repairing or renovating existing equipment and / or acquiring and repairing business premises or for purchasing tools and / or working capital requirements to medical practitioners including dentists, Chartered Accountants, Surveyors, Construction contractors or Management consultants or to a person trained in any other

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art or craft who holds either a degree or diploma from any institution established, aided or recognized by Government or to a person who is considered by the bank as technically qualified or skilled in the field in which he is employed.

Limits upto Rs.10.00 lakhs of which not more than Rs.2.00 lakh for working capital requirement, come under priority sector.

Repayment 36 to 72 EMI with a gestation period not exceeding 3 months. Collateral security, 3rd party guarantee obtained for limits above Rs.50,000.00 Rate of interest is as decided by the bank from time to time. Penal interest eligible for OD accounts. Processing charges, administrative charges applicable. For backend subsidy loan accounts interest to be charged on loan portion (net of subsidy)

only.

General Credit Card:

This scheme shall cover General Credit needs of existing customers of the branches. The objective of the scheme is to provide hassle free credit to our bank customers based

on assessment of cash flow without insisting on security purpose or end use of the credit. Maximum limit is Rs.25000/- No guarantee, no collateral security. Account will be revived every year and renewed after three years. Card holders to be covered under personal accident insurance scheme for Rs.25000/-

Housing Loans (HL):

Term Loans to salary persons / business men / professional / self employed / agriculturists to purchase or construction of house / flats or to meet repairs of the house. Quantum of finance depends upon monthly gross income / annual income as per IT return / Income certificates duly fixing certain margin on the cost of construction / amount of repairs.

Housing loans upto 15 lakhs irrespective of the location of the house are to be categorized under priority sector. The applicant’s age should not be more than 55 years and not less than 18 years.

For salaried persons maximum loan amount eligible is 36 times net monthly salary of the applicant. For agriculturist maximum loan amount eligible is 3 times net annual income. For business persons maximum loan amount eligible is 3 times of the average annual income for the last 3 years.

Repayment period should not exceed 15 years inclusive of moratorium or initial holiday period till completion of construction or 18 months from the date of disbursement of 1st

installment of the loan whichever is earlier. Collateral security, 3rd party guarantee obtained. Rate of interest is as decided by the bank from time to time. Penal interest eligible for OD accounts. Processing charges, administrative charges applicable.

Educational Loans (EL)

Term loans to students to meet the expenses of the studies for Studies in Abroad

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Studies in India.

Loans will be sanctioned for studying professional courses like Engineering, Medical, ICWA, CA Courses conducted by IIM, IIT Post graduation, MCA, MBA Phd etc.,

The applicant must be an Indian, over 16 years of age but less than 30 years and must be merit student.

Loan will be considered for Tuition fee Examination fee, project work, books, hostel fee, computer etc.,

Repayment: the loan is repayable in 60 EMI after a gestation period of 1 year after course period or 6 months after getting job whichever is earlier. Shorter repayment period may also be fixed taking into consideration of the repayment capacity.

Collateral security for limits above Rs.4.00 lakhs. Rate of interest is as decided by the bank from time to time. Penal interest eligible for OD accounts. Processing charges, administrative charges applicable.

Self Help Groups (SHG):

Loans sanctioned to SHGs and to VOs / NGOs / MACS for onward lending to SHGs / members of SHGs / discreet individuals or small groups which are in the process of forming into SHGs will be reckoned as priority sector lending and shown in this category.

Eligible amount will be arrived basing on the corpus fund / Critical rating index / micro credit plan.

Repayment period should be for a minimum of 36 months. Depending upon the repayment capacity of the group members it may get extended upto 60 months.

Rate of interest is decided by the bank from time to time. Bank claims interest portion exceeding 3% (borrower bears upto 30 in the regular SHG

loan accounts from State Govt under Pavaddi scheme.

Housing Loans (Indiramma):

Loan sanctioned to Self Help Groups for the purpose of housing under the A P Govt Indiramma scheme, will be shown under this category.

All other guidelines are same as SHG loans.

CGC Invoked Accounts:

Loans where credit guarantee corporation cover is invoked and outstanding are transferred to this head.

Temporary Overdrafts:

Overdraft allowed for a temporary period in excess of the credit balance in Current Accounts with satisfactory transactions in the account for a minimum period of 1 year.

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To be allowed against a request letter duly specifying the Purpose, Amount and period for which the TOD is required.

Allowed for a maximum period of 15 days. Not to allow more than 6 times during the year. TOD should not be allowed for cash drawals. It should be allowed for passing cheques

drawn for payment of statutory dues and other important urgent obligations of the account holder.

Clean Overdrafts to Staff (CODST)

Allow to staff with specific sanction from the competent authority. Eligible amount of limit will be arrived basing on the gross pay subject to a maximum limit of Rs.3.75 lakhs and depends on the cadre of the staff member.

Limit is valid for 2 years. Salary of the staff member is to be credited to the CODST account every month. Rate of interest is to be decided by the bank from time to time. The limit is to be reduced by 20% every year during the last five years of retirement.

Secured Overdrafts (SOD)

Overdrafts allowed to against securities like deposits of the bank ; Government securities like NSCs, KVPs, LIC policies etc.,

SOD against GOLD:

SOD will be sanctioned to those customers who borrow amount against gold ornaments frequently and repeatedly. The facility can be extended only for non agricultural purpose. This loan can be sanctioned to individuals who maintain SB / CD accounts.

Duration of the limit is 1 year. The minimum interest to be paid shall be Rs.1000 per anum. Appraising charges are applicable. Reappraising to be done once in two years.

SOD against mortgage of urban property:

This scheme shall cover the working capital needs of valued customers. This is to provide adequate credit to the customers based on the assessment of repaying capacity and worth of the security.

Contractors, traders, hotels, restaurants, hospitals, schools & colleges and wine dealers are the eligible borrowers.

Maximum loan amount is Rs.25.00 lakhs. Collateral security of immovable property located in urban areas worth atleast 200% of

the loan amount. Guarantee from 3rd party is obtained. Limit is valid for 1 year. Rate of interest will be decided by the bank from time to time.

Open Cash Credit (OCC)

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Working capital limits against the hypothecation of moveable security. Eligible amount of limit will be fixed within the Maximum permissible bank finance

(MPBF) arrived under various assessment methods. Debits will be subject to drawing power. Borrower is to maintain certain percentage of margin. Collateral security is obtained.

Suit Filed Accounts:

All loan accounts against which suits are filed will be transferred to this head. All further transactions will be routed through this account.

Clean Bills Purchase:

Cheques purchased tendered by customers belonging to savings bank / current accounts and borrowers.

Clean Bills Purchased Instant Credit:

Cheques purchased tendered by customers belonging to the savings bank category. Cheques upto a maximum of Rs.15000/- can be purchased.

Swarojgar Credit Cards:

To meet working capital or term loan for acquiring fixed assets or both including reasonable component for consumption needs upto Rs.25000/- to small businesses. In deserving cases branch may consider even limits upto Rs.50000/-

Working capital limit to be renewed annually and term loan is repayable in 5 years. This scheme covers small artisans to handloom wavers, service sector, fishermen, self

employed persons, Riksha owners other micro entrepreneurs Card holders are to be covered under group insurance scheme upto an amount of

Rs.25000/-

Bank Guarantees:

Financial guarantees as well as performance guarantees and differed payment guarantees can be issued.

Minimum cash margin shall be 15% Collateral security of property worth not less than 150% is to be obtained for the

unsecured portion. Counter guarantee is to be obtained from the customer on whose behalf the guarantee is

issued. Bank guarantee can be extended and cancelled.

Solvency certificate.

Solvency certificate has to be issued basing on the verification of properties mentioned in the property statements balance sheets, income tax & wealth tax assessment orders.

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February 2010

Annexure - 10 Write up on Products and Services of Rushikulya Gramya Bank.

Current Deposits. GL 1020

Interest free operative account with cheque book facility with certain minimum balances To operate the account regularly and frequently without any restriction on number of

withdrawals or deposits. Can be opened by individuals, JHF, proprietary concern, partnership firms, private and

public limited companies, registered or unregistered clubs and associations, co-operative societies, Government Departments religious endowments, semi Government or local bodies, trusts, executors, administrators, liquidators, receivers, assignees

Accounts become inoperative if there are no transactions for 3 years and there are charges for inoperative account every year. (PERIOD OF YEARS MAY CHANGE)

Nomination facility available. TOD can be allowed in some current accounts.

TOD in Current Accounts GL 1120

It is a contra entry for the debit balance i.e., TODs allowed in current account. The balance will be shown both under assets and liabilities.

Credit Balances in OD and CC Accounts. GL 1050

The credit balances in overdrafts and cash credit accounts will be reported here. Not entitled to receive any interest.

Overdue deposits. GL 1070

A term deposit, which is neither renewed nor paid on its due date, is to be transferred together with interest to this account.

No interest is payable on overdue deposits except under certain circumstances as defined bank / RBI.

Full particulars of the term deposits like number, name of the depositor etc should be noted against the overdue deposit.

Amt outstanding in this account can be renewed to any term deposit as per the guidelines of the bank

Saving Bank Accounts: GL 1090

Operative account with cheque book facility with certain minimum balances. Eligible for interest at half yearly intervals on monthly minimum products maintained

between 10th and last day of the month. Can be opened by individuals / jointly with the name of the two or more persons, payable

to any of them or to the survivor or survivors or to all of them jointly. Can be opened and operated by minors also.

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Can be opened in the name of government bodies, agencies depending upon budgetary allocations for their functioning with certain exceptions. Like PO, DRDA, School a/cs, BDO etc.

Nomination facility available.

Suraksha Saving Bank GL 1110

A savings bank account with accidental insurance facility with a maximum coverage of Rs.1,00,000/- by collecting premium as decided by the bank from time to time.

Individual / two or more individuals in the age group of 10 to less than 70 years can open these accounts.

To maintain minimum balances in the account as decided from time to time. Nomination facility is available. Service charges (premium) is to be debited on the day of opening and on 31st October,

every year. Some percentage of the service charges goes to P & L which will be decided by the bank

from time to time. Eligible for SB interest (3.5%) Annual premium to be debited on 01/11 of every year( date is optional)

No frills account GL 1090 (SBNF) This scheme is introduced for total financial inclusion. Accounts can be opened with zero balance and there is no minimum balance restriction

but maximum credit amt is fixed (subject to change from time to time) Interest paid at 3.5% on the minimum balance maintained from 10 th to last day of the

month. Nomination facility available.

(GL 1090 includes a/c types as SB/ SBNF/SBNRG/SBSHG)

Temporary Overdrafts in SB group of Accounts GL 1120

It is a contra entry for the debit balances i.e., TODs arised in savings bank accounts. It will be shown both under assets and liabilities.

Fixed Deposits GL 1150

A fixed amount can be deposited for a specified period. Minimum amount of deposit is Rs.100 with no ceiling on maximum amount. Minimum period of deposit is 15 days and maximum period is 120 months with

automatic renewal facility and facility for premature cancellation. Standing instructions can be taken for disposal of interest. Loan facility is available upto 90% of the deposit amount. Deposits can be made by individuals, HUF, Proprietary concerns, partnership firms,


TDS is applicable on interest as per IT Act.

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February 2010

Nomination facility is available Rate of interest as applicable for different maturities ruling from time to time with 0.50%

extra payable to senior citizens and 1% extra for staff members. And the Interest Type is :

15 – 45 days46 - 90 days91 - 179 days180 – 364 days1 year to < 2 years2 years to < 3 years3 years to <5 years5 years to 10 years

This interest type may change from time to time viz: 1 year to < 3 years etc.

Cash payment restrict upto Rs 19999/ in all GL 1150,1160,1210,1200

Kalpabata Deposits (KBD) GL 1060

A reinvestment plan, where interest will be added to the deposit amount on quarterly basis.

Minimum amount of deposit is Rs.100 with no ceiling on maximum amount. Minimum period of deposit is 6 months and maximum period is 120 months and facility

for premature cancellation. Rate of interest as applicable for different maturities ruling from time to time with 0.50%

extra payable to senior citizens and 1% extra for staff members. Loan facility is available upto 90% of the accrued amount of deposit. Deposits can be made by individuals, HUF, Proparitory concerns, partnership firms,


TDS is applicable on interest as per IT Act. Nomination facility is available Maximum cash payment restricted upto Rs 19999 ( subject to change)

TAX saver deposit: GL 1165

A term deposit account from Income tax assesses to get exemption under section 80c of IT Act.

Deposit can be in the form of Fixed deposits with monthly / quarterly interest payment or Kalpabata Deposits

Can be opened by Individuals or HUF, Income tax assesses with permanent account number either singly or jointly.

In case of joint account, exemption under Sec 80C shall be available only to the 1 st holder of the deposit.

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February 2010

To obtain the declaration from the depositor stating that the deposit amount under such scheme with various banks does not exceed Rs.100000/- under Sec 80c of IT act.

It is for a fixed period of 5 years. Minimum amount of deposit is Rs.100/- or multiples thereof with a maximum of

Rs.100000/- Rate of interest as applicable for different maturities ruling from time to time with 0.50%

extra payable to senior citizens and 1% extra for staff members. No deposit loan to be allowed or no lien to any other loan. No provision for premature cancellation. No nomination shall be obtained in case of minor.

Cash Certificates: GL 1200

Odd amounts can be deposited (Issue price) for a fixed period to receive round amount (face value) on due date.

Deposit amount is accepted for face value of Rs.100 or Rs.1000 or multiples thereof All other features as applicable to Kalpalatha Deposits. Rate of interest as applicable for different maturities ruling from time to time with 0.50%

extra payable to senior citizens.

But this GL includes Rushikulya Sarva Sreshta and Sarva Sreshta Plus in lines of Andbhra Bank schemes and scheme already closed but some a/cs outstanding in this GL Recurring Deposits: GL 1210

An affordable amount can be deposited monthly to receive a lump sum amount together with interest on due date.

Accounts can be opened by individuals (singly / jointly), clubs, proprietary concerns, partnership firms, companies associations, education institutions and other registered bodies for genuine saving purpose.

Minimum period of deposit is 6 month and in multiples of three months with a maximum period of 120 months with facility for premature cancellation.

Accounts are accepted in monthly installments with a minimum sum of Rs.5/- per month and multiples thereof.

Loan facility is available upto 90% of the deposit and interest accrued on it. Nomination facility is available.

Cash payment restricted upto 19999 / (as per Andhra Bank) and subject to change.

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13.19

Loans Against Deposits (LAD): GL2090

Demand loan allowed against the deposits of our bank, duly maintaining the lien. Loan is repayable in lump sum or installments. Loan will be allowed duly maintaining certain margin against the deposit amount. Deposit rate of interest + 2% will be charged as interest on loan. For staff, rate of interest

1% extra on deposit interest rate.

Loans Against KVPs,NSCs,LIC policies GL .2100

Loans allowed against security of NSCs / KVPs / LIC Policies / Government Securities. These loans may be allowed as demand loan or term loan. Repayment is 36 EMI for term loans and 2 years for demand loans. Amount of loan is certain percentage of the face value + accrued interest which is decided

by the bank and the percentage is different for different type of securities.

Loans Against Gold (Non agricultural) (NAGL): GL2110

Demand loan against the security of gold ornaments / jewellery to general public and staff members of the bank.

Eligible amount of the loan will be arrived basing on the fineness of the gold, appraisal value, per gram lending rate. Per gram lending rate is decided by the bank from time to time.

Repayable in one year. Rate of interest is decided by the bank from time to time. Appraising charges are applicable.

Clean Loans (CL): GL2130

Loans allowed to confirmed employees, preferably in public sector having a residual service of at least three years to meet any genuine credit requirement for personal purpose.

Loan amount will be arrived basing on the salary income.Maximum 18 months salary in case of Govt employees and 10 months for employees of private concerns.In case of non salaried persons average income of last 3 years taken as per IT returns.

Net take home pay after deduction of installments of the proposed loan shall not be less than 40% of gross salary. EMI shall not exceed 30% of gross salary of the applicant.

Repayment is maximum 60 EMI Guarantor from a good third party is obtained. Processing charges and administrative charges are applicable. Rate of interest is decided by the bank from time to time.

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February 2010

Personal Loans for consumer durables and motor vehicles: GL 2130.

Loans allowed for purchase of consumer durables like refrigerators, TV etc., and vehicles like car, motor cycle etc., to salaried persons, business people, professional & self employed and agriculturists.

For motor vehicle loan, amount of loan will be decided on the basis of gross annual income. For loan amount of more than Rs.25000 collateral security is obtained. Third party

guarantee is obtained. Maximum repayment period is 60 EMI

Other Term Loans FOR HIGH YALUE ADVANCES GL :2330.

Loans allowed for investment needs like constructions of commercial complex, cinema halls, restaurants, hospitals etc., for good customers of the bank.

Quantum of loan is based on the repayment capacity of the applicant and collateral security. Repayment period is 60 EMI.

Collateral security worth 200% of the loan is obtained. Guarantee from third party is obtained.

Mortgage loan: GL 2160

To meet credit needs of the borrowers for personal purposes such as marriage,medical expenses,educational expenses and business needs

Applicant must own a house or in the spouse’s name at Municipality or NAC headquarters including house building on roadside along NH-5 and NH-217.

applicants must have assured /verifiable sources of income and within the age group of 21-60 years.

Security to be obtained @200% of the limits sanctioned Interest rate as decided by the bank from time to time Appraisal charges as decided by the bank from time to time.

Advance against Rent Receivables: GL 2160

The address are self liquidating in nature apart from providing security coverage. Applicable to residential/commercial properties at semi-urban and urban places only. Eligible tenants includes reputed public sector/private sector/multi national undertakings,

banks and financial institutions and individuals of high repute and credibility. Maximum loan amount allowed is not more than Rs.1.00 Crore. Loan amount shall be

worked out based on monthly rent receivables in the next 84 months/unexpired lease period including option period after making adjustments for TDS, Tax and 15% of the rend towards maintenance.

Rte of interest as decided by the Bank from time to time. Primary security shall be rent receivables. No collateral securities for loans up to Rs.1.00

lac. For more than Rs.1.00 lac loans equitable mortgage of the property of value not less than 150% of the loan amount.

The loan shall be repaid within the unexpired lease period including option period or 84 months which ever is less.

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General power of Attorney (POA), preferably notarized shall be executed by the borrower in favour of the Bank, to be accepted by the lessees (by way of a letter) to collect monthly rentals from the lessee on behalf of the borrower.

All Staff Loans : GL 2165

Term loans to staff of the bank to purchase consumer durables. Rate of interest is decided by the bank from time to time. Repayments are from salary deductions.

Housing Loans to staff: GL 2166

Loans to staff of the bank to purchase or construction of houses / flats. Quantum of loan will be arrived basing on cost of construction / cost of the house or flat

and salary subject to repaying capacity subject to the ceilings fixed as per the cadre of the staff member

Rate of interest will be decided by the bank from time to time. Repayments are from salary deduction,.

Additional Housing Loans to Staff: GL 2167 AND GL 2168- ACCUED INT ON STAFF HBL/AHBL

Loans to staff of the bank to purchase or construction of house / flats This loan is in addition to the housing loan sanctioned under concessional rate of interest. Repayments are from salary deductions.

Rushikulya Bank Kisan Credit Cards: GL 2190

Short term loan under agricultural direct finance towards production credit for raising crops.

The limit is valid for 3 years. Account is to be brought credit or nil before 30 th June of every year after harvesting.

Account is to be revived every year. Eligible amount of loan will be arrived basing on scales of finance for both the crop

seasons and the acrage of cultivation. Rate of interest is decided by the bank from time to time. Interest subvention applicable for the loan accounts upto 31st March, for the accounts

disbursed in Kharif and upto 30th June for the accounts disbursed in Rabi seasons. Crop insurance as prescribed by National Agricultural Insurance Company from time to

time will be debited to accounts for eligible crops for Kharif and Rabi seasons. Processing charges and Administrative charges applicable for loan accounts of limit

above 25000/- If Government declares anavari the eligible accounts will be converted to Medium Term

Loans (MTL) and transferred to CCMTL head. The borrowers are to be covered under personal accident insurance scheme. Nominal

insurance premium is to be debited to the accounts every year.

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February 2010

Insurance on all RBKC a/cs for covering accidental insurance upto Rs 50000/ on disbursement and yearly premium on all existing accounts Rs 50/ out of which some amt to P&L

Joint Liability Groups: ( No separate GL Head)

The objective of the JLG is to augment flow of credit to tenant farmers cultivating land either as oral lessees or share croppers and small farmers who do not have proper title of their land holding through formation and financing of JLG.

A JLG is an informal group comprising preferably of 4 to 10 individuals coming together for the purposes of availing bank loan either individually or through group mechanism against the mutual guarantee.

Bank finance in two models Individuals in the group Total group

Purpose of the credit: The finance to JLG is expected to be a flexible credit product addressing the credit requirements of its members including crop production, consumption, marketing and other productive purposes.

Maximum loan amount may be restricted to Rs.50000/- per individual. No collateral security. Members of JLG are to be covered under personal accidental Insurance scheme. Crop loans to notified crops are to be covered under National Agricultural Insurance

Scheme. Gold Loans Agricultural: GL 2200

Demand Loan against the security of gold ornaments and jewellery for agricultural purpose. Agriculture direct finance towards production credit Eligible amount of loan will be arrived basing on the fineness of the gold, appraisal value per

gram, lending rate and linked to scales of finance. Repayable on or before 30th June.Rate of interest is decided by the bank from time to time. Appraiser charges are applicable. Re-Appraisal to be done once in two years for overdue loan

accounts and re-appraisal charges applicable. Penal interest of 2% applicable for OD accounts. Interest subvention applicable for the loan accounts upto 31st March, for the accounts

disbursed in Kharif and upto 30th June for the accounts disbursed in Rabi seasons.Agricultural Term Loans (ATL) GL 2210

Term Loan sanctioned for various agricultural purpose like Minor Irrigation Land Development Farm Mechanization Construction of Farm Buildings and Storage facilities like Godowns Development loans to Plantations, Horticulture, Forestry, Oil Palm, cultivation etc., Hi-tech agricultural projects such as Floriculture, Agro Processing, Tissue Culture,

Mushroom Cultivation etc., Non conventional energy source like Biogas, Solar pump sets, wind power etc

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February 2010

. Loans to unemployed Agril. Graduates under Agri clinic and agri business center Land purchase scheme.



Collateral security is required for loan limit above Rs.50000. Third party guarantee obtained.

Processing charges, administrative charges applicable for limits above Rs.200000. Government sponsored loans exempted from charges.

For backend subsidy loan accounts interest to be charged on loan portion (net of subsidy) only.

Agricultural Allied Activities: GL 2201

Term loan sanctioned for various purposes like; Dairy Poultry Sheep / Goat / Piggery / Rabbit rearing Aqua culture Seri culture



Collateral security needed for loan limit above Rs.50000. Third party guarantee obtained. Processing charges, administrative charges applicable for limits above Rs.200000.

Government sponsored loans exempted from charges. For backend subsidy loan accounts interest to be charged on loan portion (net of subsidy)

only.

Indirect Finance to Agriculture - GL 2201

Loan sanctions upto 40 lakhs for distribution of fertilizers, pesticides distribution of inputs for allied activities such as cattle feed etc.,

Loans to electricity boards, PACS, FSS and LAMPS. Finance for hire purchase scheme for distribution of agricultural machines, implements. Construction and running of storage facilities (ware house, market yards etc.,) Cold storage units in rural areas. Finance to dealers in drip irrigation / Sprinkler irrigation etc.,

KISAN YANA: PURCHASE OF 2 WHEELERS ALLOWED TO EXISTING RBKC BORROWERS WITH GOOD TRACT RECORD OF LAST 3 YEARS - GL 2220

Small Scale Industries: GL 2230

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February 2010

Bank extend most SSI entrepreneurs towards both term loans and working capital requirements upto Rs.1 crore

Any changes in definition of SSI by the Government / RBI will be announced from time to time.

Rate of interest is as decided by the bank from time to time. Repayable over fixed period of time Collateral security obtained. Third party guarantee obtained. Processing charges, Administrative charges applicable. Penal interest applicable for OD accounts. Bank can extend loan upto Rs5.00 lakhs without collateral security . Bank is to pay one time guarantee fee and annual service fee for the accounts sanctioned

under CGTMSE. Bank receives guaranteed loan portion from CGTMSE in case of default of loan

accounts. For backend subsidy loan accounts interest to be charged on loan portion (net of subsidy)

only.

Transport Operators: GL 2240

Advances to small road and water transport operators owning a fleet of vehicles, not exceeding 10 vehicles, including the one proposed to be financed. Only new vehicles are to be financed.



only.

Retail Trade GL2250

Advance granted to private retail traders dealing in essential commodities (fair price shops) and consumer co-operative stores and other private retail traders with credit limits not exceeding Rs.10.00 lakhs

Credit facilities granted for acquiring premises or furniture / showcases and office equipment and for working capital requirements.



only.

Business Enterprises: GL 2260

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February 2010

Loans extended to individuals and firms managing a business enterprise established mainly for the purpose of providing any service other than professional services whose original cost price of the equipment use for the purpose of business does not exceed Rs.20.00 lakhs without any restrictions on working capital limit.

Advances for acquisition construction renovation of house-boats and other tourist accommodation and distribution of mineral oils.

Purpose of Loans:- Credit facilities granted for purchasing of necessary equipment, repairing or renovating the existing equipment, acquiring or repairing the premises, purchasing tools and for working capital requirements.

Repayment is 36 to 60 EMI depending upon the repayment capacity of the borrowers. Collateral security, 3rd party guarantee obtained. Rate of interest is as decided by the bank from time to time. Penal interest eligible for OD accounts. Processing charges, administrative charges applicable. For backend subsidy loan accounts interest to be charged on loan portion (net of subsidy)

only.

Profession and Self Employed: GL2270

Loans to professional and self-employed persons include loans for the purpose of purchasing equipment, repairing or renovating existing equipment and / or acquiring and repairing business premises or for purchasing tools and / or working capital requirements to medical practitioners including dentists, Chartered Accountants, Surveyors, Construction contractors or Management consultants or to a person trained in any other art or craft who holds either a degree or diploma from any institution established, aided or recognized by Government or to a person who is considered by the bank as technically qualified or skilled in the field in which he is employed.

Limits upto Rs.10.00 lakhs of which not more than Rs.2.00 lakh for working capital requirement, come under priority sector.

Repayment 36 to 72 EMI with a gestation period not exceeding 3 months. Collateral security, 3rd party guarantee obtained for limits above Rs.50,000.00 Rate of interest is as decided by the bank from time to time. Penal interest eligible for OD accounts. Processing charges, administrative charges applicable. For backend subsidy loan accounts interest to be charged on loan portion (net of subsidy)

only.

General Credit Card: GL2390

This scheme shall cover General Credit needs of existing customers of the branches. The objective of the scheme is to provide hassle free credit to our bank customers based

on assessment of cash flow without insisting on security or end use of the credit. Maximum limit is Rs.25000/- No guarantee, no collateral security. Account will be revived every year and renewed after three years. Card holders to be covered under personal accident insurance scheme for Rs.25000/-

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Housing Loans (HL): GL 2280 Term Loans to salary persons / business men / professional / self employed /

agriculturists to purchase or construction of house / flats or to meet repairs of the house. Quantum of finance depends upon monthly gross income / annual income as per IT return / Income certificates duly fixing certain margin on the cost of construction / amount of repairs.

Housing loans upto 20 lakhs irrespective of the location of the house are to be categorized under priority sector. The applicant’s age should not be more than 55 years and not less than 18 years.

For salaried persons maximum loan amount eligible is 48 times gross monthly salary of the applicant. For agriculturist maximum loan amount eligible is 3 times net annual income. For business persons maximum loan amount eligible is 4 times of the average annual income for the last 3 years.

Repayment period should not exceed 20 years inclusive of moratorium or initial holiday period till completion of construction or 18 months from the date of disbursement of 1st

installment of the loan whichever is earlier. Collateral security, 3rd party guarantee obtained. Rate of interest is as decided by the bank from time to time. Penal interest eligible for OD accounts. Processing charges, administrative charges applicable.

Educational Loans (EL) GL 2300 Term loans to students to meet the expenses of the studies for

Studies in Abroad Studies in India.

Loans will be sanctioned for studying professional courses like Engineering, Medical, ICWA, CA Courses conducted by IIM, IIT Post graduation, MCA, MBA Phd etc.,

The applicant must be an Indian, over 16 years of age but less than 30 years and must be meritorious student.

Loan will be considered for Tuition fee Examination fee, project work, books, hostel fee, computer etc.,

Repayment: the loan is repayable in 60 EMI after a gestation period of 1 year after course period or 6 months after getting job whichever is earlier. Shorter repayment period may also be fixed taking into consideration of the repayment capacity.

No margin upto Rs4.00lakh Collateral security for limits above Rs.4.00 lakhs. Rate of interest is as decided by the bank from time to time. Penal interest eligible for OD accounts. Processing charges, administrative charges applicable.

Self Help Groups (SHG): GL 2301 Loans sanctioned to SHGs and/ NGOs / B-MASS for onward lending to SHGs / members

of SHGs / discreet individuals or small groups which are in the process of forming into SHGs will be reckoned as priority sector lending and shown in this category.

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February 2010

Eligible amount will be arrived basing on the corpus fund / Critical rating index / micro credit plan.

Repayment period should be for a maximum period of 36 months. Depending upon the repayment capacity of the group members it may get extended upto 60 months.

Rate of interest is decided by the bank from time to time.

SHG : WHILE EXTENDING LOANS TO SHG, TOTAL NUMBER OF GROUPS TO BE TAKEN INTO ACCOUNT SEPARATELYEX: LOAN TO MASS FEDERATION FOR ONELENDING TO 30 GROUPS: BUT WE ARE GIVING LOAN TO MASS. HENCE SYSTEM TAKING NO OF A/C AS ONE BUT IT SHOULD TAKE NO AS 30 –

Temporary Overdrafts: GL 2360

Overdraft allowed for a temporary period in excess of the credit balance in Current Accounts with satisfactory transactions in the account for a minimum period of 1 year.

To be allowed against a request letter duly specifying the Purpose, Amount and period for which the TOD is required.

Allowed for a maximum period of 15 days. Not to allow more than 6 times during the year.

Clean Overdrafts to Staff (COD) GL 2370

Allow to staff with specific sanction from the competent authority. Eligible amount of limit will be arrived basing on the gross pay subject to a maximum limit of Rs.3.75 lakhs and depends on the cadre of the staff member. (AMT OF LIMIT SUBJECT TO CHANGE)

Limit is valid for 2 years. Salary of the staff member is to be credited to the CODST account every month. Rate of interest is to be decided by the bank from time to time. The limit is to be reduced by 20% every year during the last five years of retirement.

Secured Overdrafts (SOD) GL 2380

Overdrafts allowed against securities like deposits of the bank ; Government securities like NSCs, KVPs, LIC policies etc.,

SOD against GOLD: GL 2380

SOD will be sanctioned to those customers who borrow amount against gold ornaments frequently and repeatedly. The facility can be extended only for non agricultural purpose. This loan can be sanctioned to individuals who maintain SB / CD accounts.

Duration of the limit is 1 year. The minimum interest to be paid shall be Rs.1000 per anum. Appraising charges are applicable. Reappraising to be done once in two years.

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February 2010

SOD against Real Estate: GL 2380 This scheme shall cover the working capital needs of valued customers. This is to provide

adequate credit to the customers based on the assessment of repaying capacity and worth of the security.

Contractors, traders, hotels, restaurants, hospitals, schools & colleges and wine dealers are the eligible borrowers.

Maximum loan amount is Rs.25.00 lakhs. Collateral security of immovable property located in urban areas worth atleast 200% of the

loan amount. Guarantee from 3rd party is obtained. Limit is valid for 1 year. Rate of interest will be decided by the bank from time to time.

Open Cash Credit (OCC) GL 2410 Working capital limits against the hypothecation of moveable security. Eligible amount of limit will be fixed within the Maximum permissible bank finance

(MPBF) arrived under various assessment methods. Debits will be subject to drawing power. Borrower is to maintain certain percentage of margin. Collateral security is obtained.

Rushikulya Laghu Udyog Credit card: GL 2340*To meet the working capital requirements of small business unit,retail traders,village industries,tiny and small scale industries,and professional and self employed persons for a msximum limit of Rs2.00lakhs.*limits arrived basing on 20% of the annual turnover of last 12 months for small business,retail traders and SSIs,50% of the gross annual income as per IT returns in case of professional and self employed persons*Limits are valid for 2 years and renewable on every 2 years on the basis of turn over and operations.*Collateral securities:Nil upto limit of Rs0.25lakhsAbove Rs25000/-:100% for urban and semi urban areas and 150% for other areas*Interest rate applicable as decided by the bank from time to time

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February 2010

Suit Filed Accounts: GL 2420 (PRIORITY) GL 2450 (Non prior)

All loan accounts against which suits are filed will be transferred to this head. All further transactions will be routed through this account.

Clean Bills Purchase: GLl 2470

Cheques purchased tendered by customers belonging to savings bank / current accounts and borrowers.

Clean Bills Purchased Instant Credit: GL 2471

Cheques purchased tendered by customers belonging to the savings bank category. Cheques upto a maximum of Rs.15000/- can be purchased.

Rushikulya Swarojgar Credit Cards: GL 2350

To meet working capital or term loan for acquiring fixed assets or both including reasonable component for consumption needs upto Rs.25000/- to small businesses.

Working capital limit to be renewed bi-annually and term loan is repayable in 5 years. This scheme covers small artisans to handloom wavers, service sector, fishermen, self

employed persons,and other micro entrepreneurs Card holders are to be covered under group insurance scheme upto an amount of

Rs.25000/-

Bank Guarantees: GL 2150

Financial guarantees as well as performance guarantees and differed payment guarantees can be issued.

Minimum cash margin shall be 25% Collateral security of property worth not less than 150% is to be obtained for the

unsecured portion. Counter guarantee is to be obtained from the customer on whose behalf the guarantee is

issued. Bank guarantee can be extended and cancelled.

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February 2010

Annexure - 11 Write up on.

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