ANDHRA BANK Head Office :: Dept. of Information Technology :: Cyber Gateway „D‟ Block – 3rd Floor :: Madhapur : Hitech City :: HYDERABAD – 500 081

Reference No: 666/35/2016-17/RFP/27

Date: 23.01.2017

REQUEST FOR PROPOSAL (RFP) FOR Identification of Vendors for Back office operations including processing of account opening requests and other related maintenance activities as per Bank‟s requirement.

ANDHRA BANK REQUEST FOR PROPOSAL (RFP) FOR Technical & Commercial empanelment of Vendors for Back office operations including processing of account opening requests and other related maintenance activities as per Bank‟s requirement. BID DETAILS S.No.

Subject

Date/time

1

RFP Ref. Number & Date

2.

Purpose

3.

Pre Bid Meeting

666/35/2016-17/RFP/27 dt. 23.01.2017 Processing of account opening request and other account related maintenance activities 31.01.2017, 11:00 A.M

4.

Last Date for submission of Pre Bid Queries

30.01.2017

Venue for Pre Bid Meeting

Andhra Bank, Dept. of Information Technology, D Block, III Floor, Cyber Gateway, Hitec City, Madhapur, Hyderabad – 500081

5.

6. 7.

Last date for Submission of Bid of Bidding Date & TimeDocuments of Opening of Technical Bid *

15.02.2017(3.00 P.M) 15.02.2017(3.30 P.M)

8.

Address for submission of Bid & Place of Opening of Bids

Mr. V Srinivasa Rao, Dy. General Manager, Dept. of Information Technology, Andhra Bank, D Block, III Floor, Cyber Gateway, Hitec City, Madhapur, Hyderabad – 500081 Phone No: 040-23122265; Fax Number : 040-23122261

9.

Website address

www.andhrabank.in

E-mail address

[email protected], [email protected]

10.

11. R F P Fee Rs.20,000/12. E M D Amount Rs.15,00,000/*In the presence of the authorized representative of the bidders (authorization letter from Company to be submitted) Technical bids will be opened. Only one representative will be allowed to represent the Company. DEPARTMENT OF INFORMATION TECHNOLOGY HEAD OFFICE, 3rd FLOOR, BLOCK-„D‟, WING-1 CYBER- GATEWAY, HITEC CITY MADHAPUR, HYDERABAD – 500 081

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Table of Contents Sl. No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36

Subject Introduction Broad Scope of Work Detailed Scope of Work Eligibility Criteria Service Level Agreement & Penalties Bid Process Two stage Bidding RFP Fees Earnest Money Deposit Technical Evaluation Commercial Evaluation Price Composition Payment Terms Period of Validity Project Timelines General Terms of Bid submission Force Majeure Confidentiality Resolution of Disputes Bidder‟s Liability Arbitration Inspection of Records Integrity Pact Important Points Technical Bid Form I – Company Profile Technical Bid Form II – Major Customers Technical Bid Form III – Financial Position & Quantitative Details Technical Bid Form IV – Scope and Technical Requirements Annexure I – Format of Undertaking letter Annexure – II – Format of Bank Guarantee Annexure – III – Format for submission of Pre Bid Queries Indicative Commercial Bid Form – I Indicative Commercial Bid Form – II Annexure IV – Eligibility Criteria Annexure V – Pre Contract Integrity Pact Annexure VI – Business Rules & Terms and Conditions of Reverse Auction

Page Number 3 3 4 7 8 8 9 9 9 10 11 12 12 12 12 12 14 14 14 14 15 15 15 16 17 18 19 20 22 23 24 25 26 28 31 38

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1. INTRODUCTION: 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 – is located at 3rd Floor, “D” Block, Cyber Gateway, Madhapur, Hyderabad-500081,India. Andhra Bank (http://www.andhrabank.in) hereinafter referred to as „Bank‟ 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 61% of its capital. Vision Statement: To become a significant player, providing full range of banking services through innovative customer centric products and to maximize stake holders‟ value. Mission Statement: To work together towards delivering excellent customer service by leveraging on technology and human resources to attain world class performance standards. The Bank is planning to outsource the account opening and account maintenance activities and tenders are invited for the purpose. 2. BROAD SCOPE OF WORK: As on date, Bank is having 36 zones and around 2800 branches across the country. Bank intends to migrate some of the activities happening at Branch/HO level currently to a central location, i.e. Back Office and outsource the activities to the vendor. Back office will be established at the Bank‟s premises. All necessary hardware including PCs, Printers, Scanners etc will be provided by the Bank. Vendor to deploy the required resources for account opening and other related maintenance activities at Bank‟s premises 24 x 7. Bank currently opens around 25 lakhs Current/Savings/Fixed Deposit/Loand/Advances Accounts per annum and receives around 50 lakhs for Account Maintenance activities such as Cheque Book Issue, Address Change, etc. Account opening requests includes issuance of Passbook, Cheque Book, Debit Cards, enabling the internet banking for the customer etc. However separate request shall also be received from the customer for the above facilities in case the same was not availed at the time of account opening. We propose to outsource the above mentioned activities to the empanelled vendor initially and other related activities shall be outsourced at a later date. The request received in various forms from the customer through hard copies, scanned copies, e-mail, SMS, etc shall be forwarded to the vendor for processing. Access will be made available to the Document management System implemented by the Bank for processing the applications/requests received from customers. There will be makerchecker process for all the requests. The person who will be acting as a Checker should be an experienced person in back office operations so that any errors made by

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the entry user can be identified and rectification done to ensure 100% accuracy of data. 3. DETAILED SCOPE OF WORK: 1. The bidder to take over processing of request for the below mentioned activities currently being undertaken by the Branches/Central Offices. This list is not comprehensive and any other related activities shall be added in future. a) Account Opening: i.

ii.

iii.

Applications for account opening submitted by the customers at branches will be consolidated and sent to the back office in scanned/hard copies. Bank is in the process of implementation of Enterprise Wide Document Management System including workflow. Applications for account opening are to be entered in Document Management System as per the workflow (process defined below) and the data generated in a flat file will be uploaded into CBS through the interface available, for account opening in Finacle. Passbook is to be printed in case of Savings/Current Account. If the customer had opted for other facilities as detailed above, the same is to be processed and welcome kit containing the Welcome Letter, Passbook, Debit Card, etc are to be prepared and handed over to the dispatch agency (Speed Post/ Courier) contracted by the Bank. The welcome kit is to be dispatched to the communication address of the customer. Bidder to keep track of the same till its delivery. Opening of Deposit Accounts (Fixed/Recurring) is included as an optional item so that the same can be availed by the Bank as and when required. As per RBI Guidelines, the activity of verification of KYC documents should not be outsourced. Hence before forwarding the account opening request to Back Office, the Branch manager will verify KYC details and confirm to open the account by the selected bidder. Bank has enabled Quick Account opening for the branch users. Using the menu option, accounts can be opened with minimal details. This procedure will be followed whenever the account is to be opened on urgency and details are to be communicated to the customer immediately. In such cases, the customer filled-in application forms with newly opened customer master/account number will be forwarded to back office as Scanned/Hard Copy for updating the other details of the customer as per the application form. Bank has implemented tab banking facility wherein our bank representatives will be visiting the doorstep of customers for accepting the account opening requests. The details including the KYC documents, duly verified by the Bank, collected in electronic form/hard copies will be shared with the vendor for processing the request through DMS.

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iv.

Bank has implemented online account opening whereby account opening requests will be collected online through Bank‟s website/Selfie Banking app. Customer will be submitting the documents in the respective branch which will be collected and forwarded to the back office maintained by the vendor for completing the account opening process.

Processing time for Account opening Requests (for new customer) wherever required documents as per the Bank‟s guidelines are available: S.No. 1. 2. 3. 4.

Account Type SB Accounts Term Deposit Accounts Opening of Current Accounts Opening of Loans/Advances accounts

Time for completion of processing 15 Minutes 20 Minutes 30 Minutes 30 Minutes

Account Opening Process Flow through DMS:  All the application forms received from branches across the country along with supporting documents like Address Proof, Identity Proof, etc. are initially scanned and initiated as a new work item in workflow system.  The bank users will view the scanned images and perform basic data indexing in the electronic form and submits the work-item. The work-item automatically moves to Zonal offices for verification of the documents.  At Zonal level, the users will verify the data captured at branch level and also verifies the documents submitted by the customer at branch. Here, the user will “Accept” or “Reject” the documents. In case of rejection, the transaction would move to respective branch for reprocessing. In case of acceptance the transaction would move to Centralized Back Office.  At Back Office level, user will open the transactions and completes the data entry work before sending the transaction for approval. The Approver will verify all the details and documents. Approver can “Accept” or “Reject” the transaction. Based on the decision, System will generate welcome/ rejection letter and move the transaction to the next step. The user can also raise exception which will be handled by the exception handler.  In case of any bulk account opening through Campaign or other modes, the hard copies of the application forms after verification of KYC documents will be sent to the Back office where the documents are to be scanned and uploaded into DMS first before processing, b) Account maintenance activities: The requests received from customer in various forms viz. Hardcopy application, Email, SMS, requests through other alternate channels etc will be forwarded to the back office for

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processing. The following are the major requests that are being received from customers relating to account maintenance. However the list is not comprehensive and shall include all type of request that will be received from customers which can be processed through the system for which access is made available to the back office officials. i. ii. iii. iv.

Address change Debit Card Issuance and all other card related activities such as Reissuance of Card, Linking/De Linking of accounts, PIN Reissue etc Issue of Personalized Cheque Book Availing internet banking/mobile banking facility

2. Approximate number of fields required to be entered in the system for each of the above requests is detailed in the table given below. S. No

Request

1.

Account Opening Updation of Customer/ Account master data for accounts opened by branches through quick account opening. Opening of account for requests received through Tab Banking, Online Account opening Address Change Request Card Issuance and Maintenance activities Issue of Personalised Cheque Book Request for Internet Banking/ Mobile Banking facility

2. 3. 4. 5. 6. 7.

Maximum no. of fields 60 45 10-15 6 15-20 5-10 5

3. The request received from customer in the form of hard copy, scanned copy, email etc (in structure/unstructured format) will be provided to the Bidder for processing the same and entering the request in DMS and other surrounding applications. Limited access will be made available to the bidder‟s back office team for the purpose. 4. The vendor shall provide the services round the clock 24 x 7 by maintaining the shifts as per the convenience duly ensuring that the services are not disrupted. 5. Turn Around Time (TAT) will be as per Bank‟s requirements. It is expected that the vendor shall complete the processing of all the requests received before 6:00 P.M on the same day and requests received after 6:00 P.M shall be completed before 8:00 A.M the next day. 6. Hard copy applications received will be scanned and stored in the DMS. 7. Requests received through mails and other e-channels will be consolidated and transferred to Bidder. 8. The Bidder should provide data analytical reports, request category wise, such as the number of request received, Processed, rejected with reasons thereon and TAT etc., 9. The Bidder should provide round the clock reliable help desk facility for the Bank for resolution management. Bidder to maintain Web enabled interface for raising

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any calls, viewing the call status and generations of various reports etc. Further the helpdesk should be able to address the queries received from Branches/ZO/HO regarding the status of dispatch of Welcome Kits/Other communication sent to Customers/Branches with supporting documents. 10. The employees (on roll and off-roll) who will be processing the requests shall not be allowed to carry mobile phones and storage devices of any kind into the floor area designated for back office. However mobile access for Team Leaders and process owners are permitted after prior approval by the Bank. 11. Since the access is provided for customer data, bidder to maintain confidentiality of the data given access or shared in any form by the Bank and sign the Service Level and Non Disclosure Agreements as per the terms of the RFP. 12. The Successful Bidder should ensure that all the requirements should be available within three months time from the date of signing the Contract. The non availability of the functionality will attract penalties as per the SLA. 13. Preparation of covers for dispatch wherever communication is to be sent to customers/branch as a part of services being offered will be responsibility of the bidder. 14. Bank can still process the requests received from customers for the above services on need basis and empanelling the bidder for the above mentioned services does not restrict the bank in any case. 15. The bidder to comply with the regulatory guidelines on outsourcing of financial services 4. Eligibility Criteria: The Minimum Eligibility Criteria for the bidder shall be as under:1. The Bidder submitting the Bid should be registered company in India and should have a minimum turnover of Rs. 20.00 Crore (Rs. 1.00 Crore, if the bidder is involved in only Back office related activities) with net profit for each of the previous 3 financial years as per the audited financial statement (provisional for the last year in case auditing is not completed). 2. The Bidder should have at least two years experience in providing services related to Back Office Operations including Account Opening and related activities under outsourced model in India. The Bidder should submit the documentary evidence of the same as part of its Bid. 3. The Bidder should have trained /experienced personnel and manpower to carry out the activity. Sub-contracting/outsourcing/consortium of any work is not allowed 4. The bidder should be capable of processing of the requests received in any forms, structured/unstructured as mentioned in the RFP and provide the bank desired output. 5. The Bidder should be capable of managing back office operations of at least 25 lakhs requests per annum. Self certification to be provided along with bank wise statistics. 6. The Bidder should be providing back office operations including account opening and other related activities to at least one Scheduled Commercial Bank in India. 7. The Bidder should be able to provide services as specified in scope of work given in this RFP, from Bank‟s premises at Hyderabad. 8. The Bidder should have proper licenses from Labour authority, under the Labour

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Law and other required licenses and documents to carry out this activity. Bidder should provide all documents to the Bank as and when required. Bidder has to submit self-certification on its letterhead. 9. Bidder should comply with all applicable Union, State and local laws, ordinance, regulations in performing its obligations including the procurement of licenses, permissions, certificates, etc. payment of taxes, if required. Bidder has to submit self-certification on its letterhead. 10. The Bidder should have not been blacklisted by any Govt. /Govt. Agency /Bank(s)/Financial Institutions/Any Statutory or Regulatory Authority in India or overseas. Self declaration in this regard be submitted by the bidder. 11. The bidder should do background verification of employees contracted for the activity Photocopies of relevant documents / certificates, duly stamped and signed must be submitted as proof in support of the claims made. The Bank reserves the right to verify /evaluate the claims made by the Bidder independently. The decision of the Bank in this regard shall be final, conclusive and binding upon the Bidder 5. SERVICE LEVEL AGREEMENT & PENALTIES In case the services are not made available within the stipulated period of three months, Bank may at its option impose penalty for the period of delay @1/2 % of TCO per week and the penalty may be increased to 1% per week for the delay beyond 3 weeks from the stipulated date of delivery. If the services are not made available even after 4 weeks from the stipulated date, the Bank will cancel the order and the EMD submitted by the bidder will be forfeited. Please note that the bank reserves the right to cancel the contract if the services offered do not conform to the specifications and features sought for in the RFP It is expected that the vendor shall complete the processing of all the requests received before 6:00 P.M on the same day and requests received after 6:00 P.M shall be completed before 8:00 A.M the next day. In event of the pending records beyond the above timelines, on any given day shall make the vendor liable for a penalty of Rs.1000/- per day. The penalty amount shall be deducted from the monthly invoice amount payable by the Bank to the vendor. Provided that no such penalty shall be levied if the pending records is due to: a) Work affected due to unavailability of DMS Application(Network or System failure b) Sudden spurt in inflow of accounts on a single day. 6. Bid Process: As a part of this procurement process, the bank intends to empanel vendors, for Back office operations including Account Opening and other related activities, who qualify on the basis of Pre-qualifications given else where in this tender document, Technical Evaluation of solution offered vis-a-vis the specifications & Compliance Forms provided in the Tender Documents else where to meet the bank's requirements. The Bank intends to finalize L1 vendor, through Reverse Auction Process as per the

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procedure given under clause no: 11 (Commercial Evaluation). 7. Two stage Bidding : The offer shall be submitted in sealed cover for all the products offered. The Covers should be super scribed with the headings “Technical offer for Back office operations including processing of account opening requests and other related maintenance activities” for Technical Bid documents and “Indicative Commercial offer for Back office operations including processing of account opening requests and other related maintenance activities” for Indicative Commercial Bid documents. The envelope containing Technical Offer should include only Company Profile (as per enclosed format) Relevant Technical Bid Form and Standard Printed Technical Literature/Brochure about the solution, Quality certifications for the solution and documents supporting above eligible requirements etc., for the bid. The envelope containing Indicative Commercial Offer, should include only the indicative commercial quote for the solution offered as per the format enclosed and any other formats called for. Please note that no other information other than the indicative price & other information called for should be furnished along with this offer. The sealed covers containing the Technical and Indicative Commercial offers shall in turn be put in a sealed outer envelope to be super scribed “Technical and Indicative Commercial offers for Back office operations including processing of account opening requests and other related maintenance activities ". Vendors can modify or withdraw their offer on or before 15.02.2017. Bank does not entertain any offer after the close of tender date and time i.e., 15.02.2017 at 15-00 hours. 8. RFP Fees: The Bidder is required to submit a Demand Draft amounting to Rs. 20,000/- in favor of Andhra Bank payable at Hyderabad along with the bid. This is to be submitted in a separate envelope along with the Bid response. This amount is not refundable. 9. Earnest Money Deposit (EMD): The Bidder is required to deposit a sum of Rs.15,00,000/-, Rupees Fifteen 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 one year period issued by a Scheduled Commercial Bank in lieu of EMD by way of Demand Draft / BC / The format of Bank Guarantee is provided in the ANNEXURE-IV.

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This is to be submitted in a separate envelope along with the Bid response. No interest will be paid on the EMD. 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. The EMD made by the bidder will be forfeited if:  the bidder withdraws his bid before opening of the bids.  the bidder withdraws his bid after opening of the bids but before acceptance of “Letter of Intent” or “Purchase Order”.  the selected bidder withdraws his bid / proposal before furnishing an unconditional and irrevocable Performance Bank Guarantee.  the bidder violates any of the provisions of the terms and conditions of the RFP in the process of evaluation and up to submission of Performance Bank Guarantee. 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. 10. TECHNICAL EVALUATION: The Technical Offer of all eligible vendors shall be opened first for evaluation and short listing. Bank prepares a list of empanelled vendors on the basis of the compliance of pre-qualification criteria as per terms of the tender documents & technical evaluation based on the technical compliance of the product offered by the bidder vis-à-vis the technical specifications given in the technical bid forms. Bank may call for any clarifications/ additional particulars required, if any, on the technical bids submitted by the bidder. The bidder 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. As a part of the technical evaluation process, Bank shall undertake the following  

Reference Site Visits Vendor Presentation

10.1 Reference Site Visits: Bank team will visit the bidder‟s office where the necessary infrastructure and other set up is established for providing the Back office Services under hosted model and any reference sites where similar services are offered by the bidder, to have a firsthand observation of the proposed services and submit its report along with marks scored by

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each bidder. The team would also interact with the officials of the banks at the reference sites to obtain their views wherever it is found necessary 10.2 Vendor Presentation: The bidders should make presentations of their respective solutions before the Bank‟s team. Each bidder will be given a time slot of 45 minutes hour to present their proposed services / capabilities. The bidder will be awarded marks based on the strengths of each solution offered by the bidders and its suitability for the bank. 10.3 Technical Evaluation Score Card: The technical evaluation score card based on which the bidder‟s proposal will be evaluated is given below. Sl No

Evaluation Component

1 2 3 4 Total

Compliance to Eligibility Criteria Compliance to Technical Requirement Reference site feedback Vendor presentations

Maximum Score 30 30 20 20 100

Minimum Score 30 24 80

Bidder has to score a 100% marks for serial no 1, 80% marks for serial no. 2 and minimum marks for serial no 3-4 in the above table. Overall marks secured by the bidder should not be less than 80. 11. COMMERCIAL EVALUATION: The commercial bidding process will be through a e-procurement reverse auction process. The bidders who are Technically Empanelled can participate in the online reverse auction. The envelope containing Indicative Commercial Offer, should include only the indicative commercial quote for the product offered as per the format enclosed. Please note that no other information other than the indicative price & other information called for should be furnished. The time and date of reverse auction, along with the details of the service provider conducting the reverse auction will be informed to Technically empanelled vendors through e-mail. Business Rules and Terms & Conditions of Reverse Auction is provided in Annexure VI. The Technically Qualified bidder with the lowest Commercial Bid after reverse auction and scrutiny would be declared as L1. Successful bidder has to submit the detailed price bid confirming to the TCO finalised in the reverse auction process as per the format of indicative commercial bid submitted, within 2 days after the reverse auction is completed.

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The bidder whose price bid is accepted will be referred to as “Selected Bidder” and bank will notify the name of the Selected Bidder. 12. Price Composition: The empanelled bidder should comply with the following terms & conditions with respect to the Commercial Bids enclosed as and when called for and note: a) The pricing structure should be furnished strictly as per our format and price quoted should be only in Indian rupees. b) The quoted price should be all-inclusive price (i.e., including Service Charges and Service Tax). The price quoted shall be applicable uniformly to any part of the country. Any change in service tax, increase/decrease will be passed on to the Bank. 13. Payment Terms: Payment to the vendor for the services offered will be made on monthly basis in arrears after recovering applicable penalties as per the terms of the RFP/ SLA. 14. Period of validity: The prices quoted shall be valid for a minimum period of 180 days from the date of submission of BID and if the bidder is empanelled, the same will be applicable for the entire contract period of three years from the date of issuance of Purchase Order. 15. Project Timelines: The selected bidder should start the activity within three months from the date of issuance of PO. 16. General Terms of Bid submission: Please note the following points while submitting your offers. 1. The offers shall be made strictly as per the formats enclosed. 2. Bidders have to submit only one copy of Technical Offer and one copy of Indicative Commercial Offer. 3. A soft copy of the technical and indicative commercial bids shall be kept in the respective envelopes. 4. The Bidder shall bear all the costs associated with the preparation, submission of its bid and Bank will in no case be responsible or liable for these costs, regardless of the conduct or outcome of the bidding process. 5. The bid shall be typed or written in indelible ink and shall be signed by the Bidder or a person duly authorized to bind the bidder to the contract, on all pages of the bid.

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6. The bid shall contain no interlineations, erasures or over writing except as necessary to correct errors made by the Bidder. In such cases the person or persons authorized to sign the bid shall initial such corrections. 7. 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 the rejection of its bid. 8. The Bidder is expected to examine the requirements given in the technical specifications and submit compliances. If any inconsistencies are observed in the specifications, the bidders may provide response basing on the purpose for which the tender is called for with remarks mentioned against each of such items where inconsistencies are observed 9. At any time prior to the last date for submission of bids - the Bank may, for any reason whether at its own initiative or in response to a clarification requested by a prospective bidder, modify the Bidding documents by amendments. All such amendments will be posted on the Bank‟s web site, which will be binding on all the bidders. Further, in order to provide reasonable time to the prospective Bidders to take the amendments into account in preparing their bid, the Bank may, at its discretion extend the last date and time for submission of their bids. 10. In addition to the above, if any additional/ enhanced services are offered in view of technological changes, it may be furnished as optional feature with/without cost duly explaining the benefits of the services in the technical offer document. However, the basic quote should be confined only to the services asked for. 11. The Bank reserves the right to amend, modify, add, delete, accept or cancel in part or full any conditions or specification of all proposals/ bids, without assigning any reason at any time. The Bank is under no obligation to acquire any or all the items proposed. 12. The Bank may reject any or all the responses received without assigning any reason whatsoever. The Bank reserves the right to cancel the entire process at any stage. 13. 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 to be rejected. 14. Bank may accept or reject, in full or in part, any or all the offers, without assigning any reason whatsoever. 15. Vendors shall indemnify, protect Andhra Bank against all claims, losses, costs, damages, expenses, action suits and other proceedings, resulting from Infringement of any Patent, trademarks, copyrights, agency/dealership etc., or such other statutory infringements in respect of the entire software supplied by the vendor. 16. Any disputes will be subject to the jurisdiction of courts at Hyderabad. 17. Eligibility Criteria: The vendors who meet the Standards / specifications mentioned in the “Technical Specifications / Vendors Qualifications” only have to submit their offer. 18. All points on which the bidder needs clarifications from the Bank during the prebid meeting, should be submitted by email to (i)[email protected] and (ii) [email protected] by the stipulated date.

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17. Force Majeure: Notwithstanding the above provisions, the Successful bidder shall not be liable for penalty or termination for default if and to the extent that its delay in performance or other failure to perform its obligations under the Contract is the result of an event of Force Majeure. For purposes of this clause, "Force Majeure" means an event beyond the control of the Bidder and not involving the Bidder's fault or negligence and not foreseeable. Such events may include, but are not restricted to, wars or revolutions and epidemics. If a Force Majeure situation arises, the Bidder shall promptly notify the Bank in writing of such condition and the cause thereof. Unless otherwise directed by the Bank in writing, the Bidder shall continue to perform its obligations under the Contract as far as is reasonably practical, and shall seek all reasonable alternative means of performance not prevented by the Force Majeure event. 18. Confidentiality: The RFP document contains confidential information proprietary to the Bank. The Bank is bound by an agreement of confidentiality and secrecy with regard to the dealings of all customers, particularly the borrowers. The selected Bidder shall take all precautions necessary to keep the information totally confidential and under no circumstances it will be disclosed to any third party or competitors. The Bidder shall render himself liable for disqualification/premature termination of contract apart from other legal action as may be warranted for any laxity on his part. The Bank is entitled to be indemnified by the Bidder for any loss/damage to reputation and / or for any breach of confidentiality. The information referred to shall include but not restricted to any and every information concerning the Bank and its customers which the Bidder comes to know only on account of his being associated with the Bank through the contract which the Bidder otherwise would not have had access to. The Bidder shall also not make any news release, public announcements or any other reference on RFP or contract without obtaining prior written consent from the Bank. Any reproduction of this RFP by Xerox/Photostat/Electronic or any other means is strictly prohibited without prior consent of the Bank. 19. Resolution of disputes: All disputes and controversies between Bank and Bidder shall be subject to the exclusive jurisdiction of the Courts in the Hyderabad Urban District and the parties agree to submit themselves to the jurisdiction of such court. This Project agreement shall be governed by the laws of India. 20. Bidder‟s Liability: The bidder‟s aggregate liability in connection with obligations, undertaken as a part of this project regardless of the form or nature of the action giving rise to such liability, shall be limited to the Total Cost of Ownership (TCO) of the project. The bidders liability in case of third party claims against the Bank resulting from breach of confidentiality , Willful Misconduct or Gross Negligence of the bidder, its employees and subcontractors or from third party claims resulting from infringement of patents, trademarks, copyrights or such other Intellectual Property Rights shall be unlimited

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21. Arbitration: Any controversy or claim arising out of or relating to this project and the services to be rendered by bidder under or pursuant to this project Agreement, the interpretation hereof, or its breach shall, if not resolved by mutual discussions between the parties, be settled by binding arbitration in accordance with the Arbitration and Conciliation Act, 1996. Arbitration shall be conducted in Hyderabad in English language. The Arbitral Tribunal shall be composed of one Arbitrator to be appointed by each Party, and a third Umpire appointed by such Arbitrators. Each Party shall bear the costs, fees, etc of the arbitrator nominated by them and shall equally bear the costs of the Umpire. 22. Inspection of Records: All Bidder records with respect to any matters covered by this tender shall be made available to Bank or its designees, including RBI Inspectors / auditors at any time during normal business hours, as often as Bank deems necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Said records are subject to examination. Bank‟s auditors or its designees would execute confidentiality agreement with the Bidder, provided that the auditors would be permitted to submit their findings to Bank, which would be used by Bank. The cost of the audit shall be borne by Bank. The scope of such audit would be limited to Service Levels being covered under the contract, and financial information would be excluded from such inspection, which shall be subject to the requirements of statutory and regulatory authorities 23. Integrity Pact Bank believes in total transparency, integrity and accountability in its functioning. As per the directions of CVC, Bank proposes to execute Integrity Pact with the bidder focused on enhancing transparency in its business transactions, contracts and procurement processes. The bidder shall submit the bid/tender along with the “Integrity Pact”, as per Annexure V on a non-judicial stamp paper of ₹100/- along with the bid/tender document, duly signed on all pages and the details filled in properly. All pages of the Integrity Pact shall be signed by the same signatory who signs the bid document and has the authority on behalf of the C.E.O of the company he represents. The non-judicial stamp papers are to be purchased in the name of the Bidder or Bank and the date of purchase should not be earlier than six months of date of execution. The acceptance of Integrity Pact shall be unconditional and the bidder must not change any contents of the Integrity Pact. If the contents of the Integrity Pact is changed by the bidder, the bid will be rejected. The bidder shall submit the Integrity Pact duly signed by the person(s) signing the bid. Bidders are required to clearly indicate the name and designation of the signatory (ies) as well as the name and address of the witnesses. If the Bidder is a partnership or a consortium, the Integrity Pact shall be signed by all the partners or consortium members.

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The signed Integrity Pact should be enclosed with the technical offer of the bid only. Bids received without the signed Integrity Pact and/or without details filled in shall be rejected. 24. Important Points: The offers shall reach us before 15.00 hours on 15.02.2017. The tenders thus reached the Bank within the stipulated date and time will be opened (except Commercial Bid) on 15.02.2017 at 15.30 hours. The sealed cover should be addressed to The Deputy, General Manager, Department of Information Technology, at the address mentioned above.

(V Srinivasa Rao) Dy. General Manager Encl: Technical Bid Form I to IV Annexures I to VI Indicative Commercial Bid Form I & II

Page 16

Technical Bid Form Form-I (Back office operations including processing of account opening requests and other related maintenance activities) Company Profile: 1 2 3 4 5 6 7 8 9 10 11 12

13

14 15

Name of the Company Address of Registered Office / Head Office Phone Numbers (with STD Code) Fax Number e-mail id Constitution : (Public Ltd Co., / Pvt., Ltd Co./ Partnership/ Proprietary Concern etc) Date of Establishment Name of the Chief Executive Name of the Contact Person and Phone No. Sales Tax Number Income Tax Number ( PAN ) Products Manufactured / Traded/ Services offered (Attach product/services literature documents) Brief description of Business, Business Background and Infrastructure available for Services Offered Details of Quality Certifications Obtained for the Products/Services (Attach Xerox copies) Total Number of Employees

Date:

Signature of Authorized Official with Seal

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Technical Bid Form Form-II (Back office operations including processing of account opening requests and other related maintenance activities) List of Major Customers and related references A. List of Major Customers (to whom related services are provided) Name of Bank

Details of Services provided

B. Reference details of major contracts (Please furnish details based only on service contracts executed during the last three years) Sl.No

Date:

Name of the Customer

Contact Person

Phone No

Details of services provided

Signature of Authorized Official with Seal

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Technical Bid Form

Form-III

(Back office operations including processing of account opening requests and other related maintenance activities) Abridged Financial Position (Enclose copy of audited statements) (In Rs in Lakhs) 2013-2014 2014-2015 2015-2016 Audited (A) / Provisional (P) Paid up Capital Tangible Net Worth Total Assets Total Sales (net of excise) PBDIT Profit after Tax Please attach annual reports / audited financial statements for the latest two financial years. Quantitative Details Particulars of the Item with regard to Back Office Operations under Hosted Model No. of Banks: No. of Account Opening Requests Processed: Max. no. processed in a day No. of Account Maintenance Request processed: Max. no. processed in a day

2013-2014

2014-2015

2015-2016

Enclose certificate from the respective Banks.

Date:

Signature of Authorized Official with Seal

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Technical Bid Form Form-IV (Back office operations including processing of account opening requests and other related maintenance activities) SCOPE OF WORK AND OTHER TECHNICAL REQUIREMENTS: S.No. Requirement 1.

2.

3. 4.

Bidder‟s Response

The bidder to take over processing of request for the below mentioned activities currently being undertaken by the Branches/Central Offices a) Account Opening:  Processing of Applications for account opening submitted by the customers at branches which will be consolidated and sent to the vendor‟s office in scanned/hard copies  Printing of Passbooks/Deposit receipts  Updation of fields in Account/Customer master for accounts opened by branches through quick account opening process  Processing of account opening requests received through Tab Banking, Business Correspondents under Financial Inclusion, Online account opening etc b) Account Maintenance Activities:  Capable of processing the requests received from customer in various forms viz. Hardcopy application, Email, SMS, requests through other alternate channels etc  Processing Address change and other modification requests  Debit Card Issuance and all other card related activities such as Reissuance of Card, Linking/De Linking of accounts, PIN Reissue etc  Processing of Personalised Cheque Book Requests  Processing of requests received for availing Internet Banking and Mobile Banking facility Capable of processing the request received from customer in the form of hard copy, scanned copy, e-mail etc (in structure/unstructured format) will be provided to the Bidder for processing the same and entering the request in CBS and other surrounding applications. Limited access will be made available to the bidder‟s back office team for the purpose The cost for installing/upgrading/operating/integrating of the Bidder‟s system, if any, with Bank‟s existing systems to be borne by the Bidder. The vendor shall provide the services round the clock 24 x 7 by maintaining the shifts as per the convenience duly ensuring that the services are not disrupted

Page 20

5.

6. 7. 8.

9.

10. 11.

12. 13. 14.

Turn Around Time (TAT) will be as per Bank‟s requirements. It is expected that the vendor shall complete the processing of all the requests received before 6:00 P.M on the same day and requests received after 6:00 P.M shall be completed before 8:00 A.M the next day The Bidder should provide data analytical reports, request category wise, such as the number of request received, Processed, rejected with reasons thereon and TAT etc The Bidder is to do necessary customization and to implement changes to meet Bank‟s and regulatory requirements during the currency of the Contract without any additional cost The Bidder should provide round the clock reliable help desk facility for the Bank for resolution management. Bidder to maintain Web enabled interface for raising any calls, viewing the call status and generations of various reports etc. The employees (on roll and off-roll) who will be processing the requests shall not be allowed to carry mobile phones and storage devices of any kind into the floor area designated for Bank's work under the contract. However mobile access for Team Leaders and process owners are permitted after prior approval by the Bank Bidder to maintain confidentiality of the data given access or shared in any form by the Bank and sign the Service Level and Non Disclosure Agreements as per the terms of the RFP. The Successful Bidder should ensure that all the requirements should be available within 3 months from the date of signing the Contract. The non availability of the functionality will attract penalties as per the SLA Preparation of covers for dispatch of welcome kits and other communication to be sent to customers/branch as a part of services being offered will be responsibility of the bidder. Bidder to ensure dispatch of covers through speed post/ courier and keep track of the same till its delivery. Required MIS Reports should be made available. Bidder‟s helpdesk should be able to address the queries received from Branches/ZO/HO with regard to status of dispatch and provide supporting documents for the same.

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ANNEXURE – I FORMAT OF UNDERTAKING LETTER ON THE LETTER HEAD OF THE BIDDER. To The Deputy General Manager Andhra Bank, Department of Information Technology, Andhra Bank, D Block, III Floor, Cyber Gateway, Hitec City, Madhapur Hyderabad – 500081.

Place: Date:

Dear Sir, Ref: Your Tender Reference No: Dated: for Back office operations including processing of account opening requests and other related maintenance activities With reference to the above, we hereby confirm that we are the owner of the solution offered by us in response to your above mentioned RFP (or) authorised channel partner/ authorised dealer (strike off not applicable) of M/S ………………………………………. (Provide OEM Name) for the offered solution. We confirm that the solution offered is as per the requirement specified in the RFP. If found contrary, bank reserves right to levy penalty for the lapses. We hereby confirm that the solution offered & empanelled will be available & supported during the currency of the empanelment. We undertake to support services for 3 years from the date of empanelment as per the terms of RFP. We further confirm that we have read all the points of the RFP document and shall comply & abide by that. We undertake to enter in to an SLA agreement as per the RFP document. We, further, confirm the following services will be provided, if empanlled, during the contract period, a)Configuring the equipment / loading the Device Drivers compatible with operating system as per the specific requirements of banking application deployed by the bank b)Configuring Hardware & Software, Loading of operating system & other system software as per the requirement of the Bank, Operating System Hardening, Device configuration as per the requirement of the bank c)Integrating the equipment with the LAN/WAN infrastructure and other peripherals/ equipment purchased from different vendors in co-ordination with them. d)Assists the Banks authorized representatives for undertaking the inspection as per the banks instructions, if required by bank. Further, we are agreeable for all the terms & conditions of the RFP. Yours faithfully, (Name, Designation, Address, Phone Number of the Authorised Signatory with Company Seal)

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ANNEXURE -II Format of Bank Guarantee (for EMD) To Andhra Bank Dept. of Information Technology, Block-D, III Floor, Cyber Gateway, Madhapur Hyderabad. Dear Sirs, In response to your invitation to respond to your RFP reference No. ________________ , addressed to ___________________ having their registered office at _____________ (hereinafter called the „Bidder‟) wish to respond to the said Request for Proposal (RFP) for self and other associated Bidders and submit the proposal for Back office operations including processing of account opening requests and other related maintenance activities as per Bank‟s requirements as listed in the RFP document. Whereas the „Bidder‟ has submitted the proposal in response to RFP, we, the ____________ Bank having our head office ________________ hereby irrevocably guarantee an amount of Rs. ______ Lakhs (Rupees ____________ only) as bid security as required to be submitted by the „Bidder‟ as a condition for participation in the said process of RFP. The Bid security for which this guarantee is given is liable to be enforced/ invoked: 1) If the Bidder withdraws his proposal during the period of the proposal validity; or 2) If the Bidder, having been notified of the acceptance of its proposal by the Bank during the period of the validity of the proposal fails or refuses to enter into the contract in accordance with the Terms and Conditions of the RFP or the terms and conditions mutually agreed subsequently. We undertake to pay immediately on demand to Andhra Bank the said amount of Rupees ________________ without any reservation, protest, demur, or recourse. The said guarantee is liable to be invoked/ enforced on the happening of the contingencies as mentioned above and also in the RFP document and we shall pay the amount on any Demand made by Andhra Bank which shall be conclusive and binding on us irrespective of any dispute or difference raised by the Bidder. Notwithstanding anything contained herein: 1) Our liability under this Bank guarantee shall not exceed Rs. ________ Lakhs (Rupees __________ only). 2) This Bank guarantee will be valid up to __________________; and 3) We are liable to pay the guarantee amount or any part thereof under this Bank guarantee only upon service of a written claim or demand by you on or before ________________. In witness whereof the Bank, through the authorized officer has sets its hand and stamp on this _______________ day of __________________ at _________________. Signature of the Bank‟s authorized Officer.

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ANNEXURE – III

FORMAT FOR SUBMISSION OF PRE-BID QUERIES BIDDER NAME: S.No

Page No. in RFP

Clause No.

RFP Clause

Bidder‟s Query

Note: The queries are to be submitted strictly as per the format given above by e-mail to the below mentioned mail ids on or before 30.01.2017. 1. [email protected] 2. [email protected]

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INDICATIVE COMMERCIAL BID FORM-I (Back office operations including processing of account opening requests and other related maintenance activities) To: Andhra Bank

Date:

Gentlemen, Reg: (Back office operations including processing of account opening requests and other related maintenance activities) Having examined the Bidding Documents, the receipt of which is hereby duly acknowledged, we, the undersigned, offer the Back office operations including processing of account opening requests and other related maintenance activities, in conformity with the said Bidding documents for the sum of .…………….(Rs. ) or such other sums as may be ascertained in accordance with the Schedule of Prices attached herewith and made part of this Bid. We undertake, if our Bid is accepted, to commission the services in accordance with the schedule specified in the Schedule of Requirements/ purchase orders issued. If our Bid is accepted, we will obtain the guarantee of a bank in a sum equivalent to ten percent of the Purchase Order Price, placed on us, for the due performance of the Contract in the form prescribed by the Bank. We agree to abide by the Bid and the rates quoted therein for the order awarded by the Bank up to the period prescribed in the Bid which shall remain binding upon us. Until a formal contract is prepared and executed, this Bid, together with your written acceptance thereof and your notification of award, shall constitute a binding Contract between us. We undertake that, in competing for (and, if the award is made to us, in executing) the above contract, we will strictly observe the laws against fraud and corruption in force in India namely "Prevention of Corruption Act 1988". We understand that you are not bound to accept the lowest or any Bid you may receive. Dated this…………………… Day of ……………………….. 2017. (Signature) (Name)

(in the capacity of)

Duly authorized to sign Bid for and on behalf of

Page 25

INDICATIVE COMMERCIAL BID FORM-II (Back office operations including processing of account opening requests and other related maintenance activities) Name of the Vendor: All prices should be mentioned in Indian Rupees inclusive of applicable taxes. Any increase/decrease in taxes will be passed on to the Bank. The price will be valid for the entire contract period of three years from the date of issuance of purchase order.

SNO

1

2.

3.

4.

Particulars

Processing cost for Account opening Requests received through Scanned Copies/Hard Copies Processing cost for Account updation Requests where accounts already opened through Quick Account Opening by Branches Processing cost for Account opening Requests received through Tab Banking, BCs, Online account opening and other alternate channels Processing cost for Address change requests

Cost per request

Taxes (Rs.)

Total Cost per Request (Rs.)

No. of Requests

Total Cost for the quantity mentioned in RFP.

10,00,000*

10,00,000*

5,00,000*

5,00,000*

Page 26

5.

6.

7.

8.

Processing of card issuance requests and other card related maintenance activities Processing of Personalised Cheque Book Issue Request Processing of Internet Banking / Mobile Bankin requests Processing of any other requests involving 10-20 fields

20,00,000*

20,00,000*

10,00,000*

1,00,000*

TCO for 3 Years * The quantity mentioned is only for the purpose of calculation of TCO to arrive at the L1 vendor. Actual number may vary which the vendor has to be support at the same rate quoted in the bid.

Date:

Signature of Authorized Official with Seal

Page 27

ANNEXURE – IV ANDHRA BANK, DEPARTMENT OF INFORMATION TECHNOLOGY,3rd FLOOR, D- BLOCK, CYBER GATEWAY,HITEC CITY, MADHAPUR, HYDERABAD STATEMENT OF PRE-QUALIFICATION OF RFP FOR Back office operations including processing of account opening requests and other related maintenance activities under hosted model Sr.No.

1.

2.

3

4

5

Eligibility Criteria The Bidder submitting the Bid should be registered company in India and should have a minimum turnover of Rs. 20.00 Crore (Rs. 1.00 Crore, if the bidder is involved in only Back office related activities) with net profit for each of the previous 3 financial years as per the audited financial statement (provisional for the last year in case auditing is not completed) The Bidder should have at least two years experience in providing services related to Back Office Operations including Account Opening and related activities under outsourced model in India. The Bidder should submit the documentary evidence of the same as part of its Bid. The Bidder should have trained /experienced personnel and manpower to carry out the activity. Subcontracting/ outsourcing/ consortium of any work is not allowed The bidder should be capable of processing of the requests received in any forms, structured/unstructured as mentioned in the RFP and provide the bank desired output The Bidder should be capable of managing back office operations of at least 25 lakhs requests per annum. Self

Bidder‟s Response

Page 28

6

7.

8.

9.

10.

11.

certification to be provided along with bankwise statistics The Bidder should be providing back office operations including account opening and other related activities at least one Scheduled Commercial Bank in India. The Bidder should be able to provide services as specified in scope of work given in this RFP, from Bank‟s premises at in Hyderabad The Bidder should have proper licenses from Labour authority, under the Labour Law and other required licenses and documents to carry out this activity. Bidder should provide all documents to the Bank as and when required. Bidder has to submit self-certification on its letterhead Bidder should comply with all applicable Union, State and local laws, ordinance, regulations in performing its obligations including the procurement of licenses, permissions, certificates, etc. payment of taxes, if required. Bidder has to submit selfcertification on its letterhead The Bidder should have not been blacklisted by any Govt. /Govt. Agency /Bank(s)/Financial Institutions/Any Statutory or Regulatory Authority in India or overseas. Self declaration in this regard be submitted by the bidder The bidder should do background verification of employees contracted for the activity

Page 29

Note: Photocopies of relevant documents / certificates, duly stamped and signed must be submitted as proof in support of the claims made. The Bank reserves the right to verify /evaluate the claims made by the Bidder independently. The decision of the Bank in this regard shall be final, conclusive and binding upon the Bidder

Date: Seal

Signature of Authorised Official with

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Annexure V PRE CONTRACT INTEGRITY PACT General This pre-bid pre-contract Agreement (hereinafter called the Integrity Pact) is made on____________ day of the month of _______________ 20__, between, on one hand, Andhra Bank, a Government of India Undertaking constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act 1980 represented by Shri. ________________, (Designation of the Officer), (hereinafter called the 'BUYER', which expression shall mean and include, unless the context otherwise requires, his successors in office and assigns) of the First Part and M/s. ____________________ represented by Shri.___________________________, Chief Executive Officer (hereinafter called the "BIDDER/SELLER" which expression shall mean and include, unless the context otherwise requires, his successors and permitted assigns) of the Second Part. WHEREAS the 'BUYER' has invited bids for the BIDDER/SELLER is submitting his bid for the same and

______________

and

the

WHEREAS the BIDDER is a Private Limited company/Public Limited company/Government undertaking/registered partnership firm/ constituted in accordance with the relevant law in the matter and the 'BUYER' is Andhra Bank. NOW, THEREFORE, To avoid all forms of corruption by following a system that is fair, transparent and free from any influence/prejudiced dealings prior to, during and subsequent to the currency of the contract to be entered into with a view to:Enabling the BUYER to obtain the desired said equipment/ services/ works at a competitive price in conformity with the defined specifications by avoiding the high cost and the distortionary impact of corruption on public procurement, and Enabling BIDDERS to abstain from bribing or indulging in any corrupt practice in order to secure the contract by providing assurance to them that their competitors will also abstain from bribing and other corrupt practices and the 'BUYER' will commit to prevent corruption, in any form, by its officials by following transparent procedures. The parties hereto hereby agree to enter into this Integrity Pact and agree as follows: Commitments of the 'BUYER' 1.1 The 'BUYER' undertakes that no official of the 'BUYER', indirectly with the contract, will demand, take a promise for or through intermediaries, any bribe, consideration, gift, reward,

connected directly or accept, directly or favor or any

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material or immaterial benefit or any other advantage from the BIDDER, either for themselves or for any person, organization or third party related to the contract in exchange for an advantage in the bidding process, bid evaluation, contracting or implementation process related to the contract. 1.2 The 'BUYER' will, during the pre-contract stage, treat all BIDDERS alike and will provide to all BIDDERS the same information and will not provide any such information to any particular BIDDER which could afford an advantage to that particular BIDDER in comparison to other BIDDERS. 1.3 All the officials of the 'BUYER' will report to the appropriate office any attempted or completed breaches of the above as well as any substantial suspicion of such a breach.

Government commitments

2.

In case any such preceding misconduct on the part of such official(s) is reported by the BIDDER to the 'BUYER' with full and verifiable facts and the same is prima facie found to be correct by the 'BUYER' necessary disciplinary proceedings, or any other action as deemed fit, including criminal proceedings may be initiated by the 'BUYER' and such a person shall be debarred from further dealings related-to the contract process. In such a case while an enquiry is being conducted by the 'BUYER' the proceedings under the contract would not be stalled. Commitments of BIDDERS 3. The BIDDER commits itself to take all measures necessary to prevent corrupt practices, unfair means and illegal activities during any stage of its bid or during any pre-contract or post-contract stage in order to secure the contract or in furtherance to secure it and in particular commit itself to the following:3.1 The BIDDER will not offer, directly or through intermediaries, any bribe, gift, consideration, reward, favor, any material or immaterial benefit or other advantage, commission, fees, brokerage or inducement to any official of the 'BUYER' connected directly or indirectly with the bidding process, or to any person, organization or third party related to the contract in exchange for any advantage in the bidding, evaluation, contracting and implementation of the contract. 3.2 The BIDDER further undertakes that it has not given, offered or promised to give, directly or indirectly any bribe, gift, consideration, reward, favor, any material or immaterial benefit or other advantage, commission, fees, brokerage or inducement to any official of the 'BUYER' or otherwise in procuring the Contract or forbearing to do or having done any act in relation to the obtaining or execution of the contract or any other contract with the Government for showing or forbearing to show favor or disfavor to any person in relation to the contract or any other contract with the Government. 3.3* BIDDERS shall disclose the name and address of agents and representatives and Indian BIDDERS shall disclose their foreign principals or associates.

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3.4* BIDDERS shall disclose the payments to be made by them to agents/brokers or any other intermediary, in connection with this bid/contract. 3.5* The BIDDER further confirms and declares to the 'BUYER' that the BIDDER has not engaged any individual or firm or company whether Indian or foreign to intercede, facilitate or in any way to recommend to the BUYER or any of its functionaries, whether officially or unofficially to the award of the contract to the BIDDER, nor has any amount been paid, promised or intended to be paid to any such individual, firm or company in respect of any such intercession, facilitation or recommendation. 3.6 The BIDDER, either while presenting the bid or during pre-contract negotiations or before signing the contract, shall disclose any payments he has made, is committed to or intends to make to officials of the 'BUYER' or their family members, agents, brokers or any other intermediaries in connection with the contract and the details of services agreed upon for such payments. 3.7 The BIDDER will not collude with other parties interested in the contract to impair the transparency, fairness and progress of the bidding process, bid evaluation, contracting and implementation of the contract. 3.8 The BIDDER will not accept any advantage in exchange for any corrupt practice, unfair means and illegal activities. 3.9 The BIDDER shall not use improperly, for purposes of competition or personal gain, or pass on to others, any information provided by the 'BUYER' as part of the business relationship, regarding plans, technical proposals and business details, including information contained in any electronic data carrier. The BIDDER also undertakes to exercise due and adequate care lest any such information is divulged. 3.10

The BIDDER commits to refrain from giving any complaint directly or through any other manner without supporting it with full and verifiable facts.

3.11

The BIDDER shall not instigate or cause to instigate any third person to commit any of the actions mentioned above.

3.12

If the BIDDER or any employee of the BIDDER or any person acting on behalf of the BIDDER, either directly or indirectly, is a relative of any of the officers of the 'BUYER' or alternatively, if any relative of an officer of the 'BUYER' has financial interest/stake in the BIDDER's firm, the same shall be disclosed by the BIDDER at the time of filing of tender. The term 'relative' for this purpose would be as defined in Section 6 of the Companies Act 1956. 3.13 the

The BIDDER shall not lend to or borrow any money from or enter into any monetary dealings or transactions, directly or indirectly, with any employee of 'BUYER'.

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4. Previous Transgression 4.1 The BIDDER declares that no previous transgression occurred in the last three years immediately before signing of this Integrity Pact, with any other company in any country in respect of any corrupt practices envisaged hereunder or with any Public Sector Enterprise in India or any Government Department in India that could justify bidder's exclusion from the tender process. 4.2 The BIDDER agrees that if it makes incorrect statement on this subject, BIDDER can be disqualified from the tender process or the contract, if already awarded, can be terminated for such reason. 5. Earnest Money (Security Deposit) 5.1 While submitting commercial bid, the BIDDER shall deposit an amount ____ (to be specified in Bid Document) as Earnest Money/Security Deposit, with the 'BUYER' through any of the following instruments: (i) Bank Draft or a Pay Order in favor of _______ (ii) A confirmed guarantee by an Indian Nationalized Bank, promising payment of the guaranteed sum to the 'BUYER' on demand within 3 working days without any demur whatsoever and without seeking any reasons whatsoever. The demand for payment by the 'BUYER' shall be treated as conclusive proof of payment. (iii) Any other mode or through any other instrument (to be specified in the Bid Document). 5.2 The Earnest Money/Security Deposit shall be valid up to a period of ______ months or the complete conclusion of the contractual obligations to the complete satisfaction of both the BIDDER and the BUYER, including warranty period, whichever is later. 5.3 In case of the successful BIDDER a clause would also be incorporated in the Article pertaining to Performance Bond in the Purchase Contract that the provisions of Sanctions for violation shall be applicable for forfeiture of Performance Bond in case of a decision by the BUYER to forfeit the same without assigning any reason for imposing sanction for violation of this Pact. 5.4 No interest shall be payable by the 'BUYER' to the BIDDER on Earnest Money/ Security Deposit for the period of its currency. 6. Sanctions for Violations 6.1 Any breach of the aforesaid provisions by the BIDDER or any one employed by it or acting on its behalf (whether with or without the knowledge of the BIDDER) shall entitle the 'BUYER' to take all or any one of the following actions, wherever required:-

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(i) To immediately call off the pre contract negotiations without assigning any reason or giving any compensation to the BIDDER. However, the proceedings with the other BIDDER(s) would continue. (ii) The Earnest Money Deposit (in pre-contract stage) and/or Security Deposit/Performance Bond (after the contract is signed) shall stand forfeited either fully or partially, as decided by the 'BUYER' and the 'BUYER' shall not be required to assign any reason therefore. (iii) To immediately cancel the contract, if already signed, without giving any compensation to the BIDDER. (iv) To recover all sums already paid by the BUYER, and in case of an Indian BIDDER with interest thereon at 2% higher than the prevailing Prime Lending Rate of State Bank of India, while in case of a BIDDER from a country other than India with interest thereon at 2% higher than the LIBOR. If any outstanding payment is due to the BIDDER from the BUYER in connection with any other contract, such outstanding payment could also be utilized to recover the aforesaid sum and interest. (v) To encash the advance bank guarantee and performance bond/warranty bond, if furnished by the BIDDER, in order to recover the payments, already made by the BUYER, along with interest. (vi) To cancel all or any other Contracts with the BIDDER. The BIDDER shall, be liable to pay compensation for any loss or damage to the 'BUYER' resulting from such cancellation/rescission and the 'BUYER' shall be entitled to deduct the amount so payable from the money(s) due to the BIDDER. (vii)To debar the BIDDER from participating in future bidding processes of the Government of India for a minimum period of five years, which may be further extended at the discretion of the 'BUYER. (viii) In cases where irrevocable Letters of Credit have been received in respect of any contract signed by the BUYER with the BIDDER, the same shall not be opened. (ix) To recover all sums paid in violation of this Pact by BIDDER(s) to any middleman or agent or broker with a view to securing the contract. (x) Forfeiture of Performance Guarantee in case of a decision by the 'BUYER' to forfeit the same without assigning any reason for imposing sanction for violation of this Pact. 6.2 The 'BUYER' will be entitled to take all or any of the actions mentioned at para 6.1(i) to (x) of this Pact also on the Commission by the BIDDER or any one employed by it or acting on its behalf (whether with or without the knowledge of the BIDDER), of an offence as defined in Chapter IX of the Indian Penal code, 1860 or Prevention of Corruption Act, 1988 or any other statute enacted for prevention of corruption.

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6.3 The decision of the 'BUYER' to the effect that a breach of the provisions of this Pact has been committed by the BIDDER shall be final and conclusive on the BIDDER. However, the BIDDER can approach the Independent Monitor(s) appointed for the purposes of this Pact. 7. Fall Clause 7.1 The BIDDER undertakes that it has not supplied/is not supplying similar Product/ systems or subsystems at a price lower than that offered in the present bid in respect of any other Ministry / Department of the Government of India or PSU and if it is found at any stage that similar project was performed by the BIDDER to any other Ministry/Department of the Government of India or a PSU at a lower price, then that very price, with due allowance for elapsed time, will be applicable to the present case and the difference in the cost would be refunded by the BIDDER to the 'BUYER', if the contract has already been concluded. 8. Independent Monitors 8.1 The 'BUYER' shall appoint Independent Monitors (hereinafter referred to as Monitors) for this Pact in consultation with the Central Vigilance Commission. 8.2 The task of the Monitors shall be to review independently and objectively, whether and to what extent the parties comply with the obligations under this Pact. 8.3 The Monitors shall not be subject to instructions by the representatives of the parties and perform their functions neutrally and independently. 8.4 Both the parties accept that the Monitors have the right to access all the documents relating to the project/procurement, including minutes of meetings. 8.5 As soon as the Monitor notices, or has reason to believe, a violation of this Pact, he will so inform the Authority designated by the BUYER, 8.6 The BIDDER(s) accepts that the Monitor has the right to access without restriction to all Project documentation of the BUYER, including that provided by the BIDDER. The BIDDER will also grant the Monitor, upon his request and demonstration of a valid interest, unrestricted and unconditional access to his project documentation. The same is applicable to Subcontractors. The Monitor shall be under contractual obligation to treat the information and documents of the BIDDER/Subcontractor(s) with confidentiality. 8.7 The BUYER will provide to the Monitor sufficient information about all meetings among the parties related to the Project provided such meetings could have an impact on the contractual relations between the parties. The parties will offer to the Monitor the option to participate in such meetings.

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8.8 The Monitor will submit a written report to the designated Authority of BUYER within 8 to 10 weeks from the date of reference or intimation to him by the BUYER/ BIDDER and, should the occasion arise, submit proposals for correcting problematic situations. 9. Facilitation of Investigation In case of any allegation of violation of any provisions of this pact or payment of commission, the BUYER or its agencies shall be entitled to examine all the documents including the Books of Accounts of the BIDDER and the BIDDER shall provide necessary information and documents in English and shall extend all possible help for the purpose of such examination. 10. Law and Place of Jurisdiction This Pact is subject to Indian Law.' The place of performance and jurisdiction is the seat of the BUYER 11. Other Legal Actions The actions stipulated in this Integrity Pact are without prejudice to any other legal action that may follow in accordance with the provisions of the extant law in force relating to any civil or criminal proceedings. 12. Validity 12.1 The validity of this Integrity Pact shall be from date of its signing and extend up to 5 years or the complete execution of the contract to the satisfaction of both the BUYER and the BIDDER/SELLER, including warranty period, whichever is later. In case BIDDER is unsuccessful, this Integrity Pact shall expire after six months from the date of the signing of the contract. 12.2 Should one or several provisions of this Pact turn out to be invalid; the remainder of this Pact shall remain valid. In this case, the parties will strive to come to an agreement to their original intentions. 13. The parties hereby sign this Integrity Pact at Hyderabad on________ BUYER BIDDER. Name of the Officer. CHIEF EXECUTIVE OFFICER Designation Andhra Bank Witness Witness 1. ________________ 2. _________________

1.___________________ 2.___________________,

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Annexure VI Business Rules and Terms & Conditions of Reverse Auction Reverse Auction event will be carried out among the Technically Empanelled bidders, for providing opportunity to the bidders to quote the price dynamically for the procurement for which this RFP is floated Applicability: Reverse Auction is carried out under the framework of rules that are called Business Rules. All bidders participating in Reverse Auction shall understand/accept and give an undertaking for compliance with the same to the Bank in the prescribed Annexure-RA-1 enclosed as annexure. Any bidder not willing to submit such an undertaking shall be disqualified for further participation respecting the procurement in question. Eligibility of Bidders to participate in Reverse Auction : Bidders, who are technically empanelled and accept the Business Rules, Terms & conditions of Reversion Auction, and submit the undertakings as per Annexure-RA-1, can only participate in Reverse Auction process. Bidders not submitting the above undertaking or submitting with deviations / amendments thereto will be disqualified from further evaluation / participation in the process of relevant procurement. Compliance/Confirmation from the Vendor: The bidder participating in Reverse Auction shall submit the following duly signed by the same Competent Authority who signs the offer documents in response to the RFP: a) Acceptance of Business Rules for Reverse Auction and undertaking as per format in Annexure-RA-1. b) Agreement between service provider and vendor (This format will be given by the service provider prior to announcement of Reverse Auction.) c) Letter of authority authorising the name/s of official/s to take part in Reverse Auction as per format Annexure-RA-2. Training The Bank will facilitate training for participation in Reverse Auction either on its own or through the Service Provider for the Reverse Auction. Where necessary, the Bank/Service provider may also conduct a „mock reverse auction‟ to familiarize the bidders with the Reverse Auction process. Any bidder not participating in training and/or „mock reverse auction‟ shall do so at his own risk and it shall not be open for him to make any complaint/grievance at a later date.

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Total Cost of Ownership (TCO) Total Cost of Ownership (TCO) refers to the aggregate amounts payable by the Bank for availing the services. TCO shall encompass but not limited to the following: a) b) c) d) e)

Cost of the equipment/product or services All existing taxes (including sales tax/VAT, service tax etc), duties and levies. The prices should include all services as specified in the RFP. Training costs for the product/service/equipment if any as defined in the RFP. Service Level Agreement (SLA) costs as defined in the RFP for applicable period.

TCO, however, shall not include variables of octroi and entry tax. These shall be paid as per actual on production of receipts. However, no penalties in respect of octroi or entry tax shall be paid by the Bank and the bidder shall bear such expenses. Date/Time for Training The Venue, Date, Time etc for training in Reverse Auction shall be advised at the appropriate time. The Bank shall endeavor to fix such Date/Time at mutual convenience to the bidder/s, Service Provider and the Bank. No request for postponement/fixing of Training Date/Time shall be entertained which in the sole view and discretion of the Bank might result in any avoidable delay to either Reverse Auction or the whole process of selection of Vendor. Date/Time of Reverse Auction The Date and Time of commencement of Reverse Auction as also the Duration of „Reverse Auction Time‟ shall be communicated at least 7 working days prior to such auction date. Any force majeure or other conditions leading to postponement of auction shall entitle the bank to postponement of auction even after communication, but, the Bank shall be obliged to communicate to all participating bidders the „postponement‟ prior to commencement of such „Reverse Auction‟. Conduct of Reverse Auction The Reverse Auction shall be conducted on a specific web portal meant for this purpose. The Reverse Auction may be conducted by the Bank itself or through a Service Provider specifically identified/appointed/empanelled by the Bank. Service Provider‟s Role & Responsibilities In all Reverse Auctions conducted by the Bank through a Service Provider, the Bank shall enter into a separate agreement clearly detailing the role and responsibilities of the Service provider hosting the web portal for the Reverse Auction. For creating necessary obligations and rights, the Service Provider will also enter into an agreement with each bidder as per the format designed by the Service Provider for this

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purpose. The Bank shall resolve any points/issues concerning such agreement of the bidders and Service Provider. While a Service Level Agreement (SLA) by the Bank with the Service Provider is an agreement for smooth and fair conduct of the Reverse Auction, the Bank shall be directly responsible to the bidders for fair and transparent conduct of Reverse Auction. The Service Provider at the end of each reverse Auction shall provide the Bank with all details of the bids and the reports of Reverse Auction. The Service Provider shall also archive the data pertaining to the Reverse Auction for a minimum period of 3 years. Training and Auction Service Provider/auctioneer is responsible for conduct of adequate training to all technically qualified bidders representing the Reverse Auction and bidding process. Each bidder shall participate in the training at his/their own cost. Wherever it is considered necessary and asked by the bidders or as decided by the Service provider/auctioneer or by the Bank, a mock auction may also be conducted for the benefit of all concerned. Authorized representatives of the bidders named in the authorization letter given by the bidders (Annexure-RA-2) shall be given unique user name and password by the Service Provider/auctioneer. Each bidder shall change the password and edit the information in the registration page after receipt of initial password. All the bids made from the log-in ID given to the bidders shall ipso-facto be considered bid made by the bidder to whom log-in ID and password were assigned by the Service Provider/auctioneer. Any bid once made through the registered log-in ID/password by the bidder cannot be cancelled. The bidder, in other words, is bound to sell the ‟Offering‟ as per the RFP at the bid price of TCO. Every successive bid by the bidder being decrement bidding shall replace the earlier bid automatically and the final bid as per the time and log-in ID shall prevail over the earlier bids. The Bank shall conduct the Reverse Auction as per the Standard English reverse auction, that is, no two bids can have identical price from two different bidders. In other words, there shall never be a „TIE‟ in bids.

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Proxy Bid A proxy bid is one where the bidder can submit the lowest bid amount by him in strict confidence to the system directly. This obviates the need for him in participating in the bidding process until the proxy bid amount is decrementally reached by other bidders. When proxy bid is reached, the bidder has an option to revise the proxy bid amount or he can prefer to start participating in the bidding process. Since it is an English auction with no ties, two bidders submitting identical proxy bid amount and succeeding in auction simultaneously does not arise. During the training, the issue of proxy bidding will be clarified in detail by the Service Provider/auctioneer. Transparency in Bids All bidders will be able to view during the auction time the current lowest price in portal. Bidder shall be able to view not only the lowest bid but also the last bid made by him at any point of time during the auction time. Masking of Names Name of bidders shall be anonymously masked in the Reverse Auction process and the bidders will be given suitable dummy names. After completion of Reverse Auction, the Service Provider/auctioneer shall submit a report to the Bank with all details of bid and the original names of bidders as also the L1 bidder with his/their original names. Start Price Banks hall determine the start price either on its own or through the indicative commercial bid. Based on the price band so informed by the vendors, Bank would determine the start price for Reverse Auction. Decremental Bid Value The bidders shall be able to bid only at a specified decrement value and not at any other fractions. The bid decrement value shall be Rs. 5000/- or 0.25% of the start price of the Reverse Auction, whichever is higher. The bid decrement value shall be rounded off to the nearest thousands of rupees. For the sake of convenience of the bidders, the web portal shall display the next possible decrement value of the bid. It is not, however, obligatory on the part of the bidders to bid at the next immediate lower level only. That is, bids can be even at 2 or 3 levels lower that the immediate lower level. Copy of Business Rules The Bank shall supply copy of the Business Rules to any bidder wishing to participate in the Reverse Auction. Such request shall be made in writing to the Bank by an authorized representative of the bidder.

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The Bank shall also handover a copy of the Business Rules with a covering letter duly signed by an authorized signatory of the Bank. For any dispute concerning the Business Rules, the hard copy of Business Rules supplied by the Bank for the reference of Reverse Auction process will alone be considered as final and binding. Reverse Auction Process In order to reduce the time involved in the procurement process, Bank shall be entitled to complete the entire process through a single Reverse Auction. For this purpose, Bank shall do all it can to award the contract to L1 bidder. The Bank shall however, be entitled to cancel the procurement through Reverse Auction process, if in its view procurement through Reverse Auction process cannot be conducted in a fair manner and / or in the interest of the Bank. The successful bidder shall be obliged to provide a Bill of Material at the last bid price at the close of auction. Expenditure on Reverse Auction All expenses of Reverse Auction shall be borne by the Bank. The bidders, however, shall attend the training or mock auction at their own cost. Change in Business Rules Any change in Business Rules as may become emergent and based on the experience gained shall be made only by a committee of Senior / Top executives of the Bank. Any / all changes made in Business Rules shall be uploaded in the Bank‟s website immediately. If any Reverse Auction process has commenced and a change is made in Business Rules, it shall be informed immediately to each bidder and his concurrence to / acceptance of the change shall be obtained in writing by the Bank. Don‟ts Applicable to the Bidders No bidder shall involve himself / itself or any of his / its representatives in any price manipulation directly or indirectly with other bidders. If any such practice comes to the notice of the Bank, the Bank shall disqualify the bidder/bidders concerned from the Reverse Auction process. Bidder shall not disclose details of his bids or any other details concerning the Reverse Auction process of the Bank to any other third party without specific permission in writing from the Bank. Neither Bank not Service Provider / auctioneer can be held responsible for consequential damages such as no power supply, system problem, inability to use the system, loss of electronic information, power interruptions, UPS failure etc. Bank shall, however, entertain any such interruptions, problems with an open mind and fair degree of transparency in the process before deciding to stop or extend the auction.

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Grievance Redressal Any aggrieved bidder through Reverse Auction process can make a complaint in writing within 48 hours of the Reverse Auction to the Chief Compliance Officer of the Bank. The Chief Compliance Officer along with the members of the Grievance Redressal Committee shall give a personal hearing to the aggrieved bidder and decide upon the complaint/grievance. Decision of the Grievance Redressal Committee shall be binding on the Bank as well as on the bidders participating in the Reverse Auction. Errors and Omissions On any issue or area of material concern in respect of Reverse Auction not specifically dealt with in these Business Rules, the decision of the Bank shall be final and binding on all concerned.

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Annexure-RA-1 (to be submitted on company letter head by all Bidders participating in Reverse Auction) To, The General Manager Andhra Bank Dept. of Information Technology, Andhra Bank, D Block, III Floor, Cyber Gateway, Hitec City, Madhapur, Hyderabad – 500081

Date :

DECLARATION 1. We ______________________(name of the company) hereby confirm having submitted our bid for participating in Bank‟s RFP ref no__________ dated _________ for implementation of Back Office Operations including Account opening and other related maintenance activities 2. We also confirm having read the terms of RFP as well as the Business Rules relating to the Reverse Auction for this RFP process. 3. We hereby undertake and agree to abide by all the terms and conditions stipulated by Bank in the RFP document including all annexures and the Business Rules for Reverse Auction. 4. We shall participate in the on-line auction conducted by _______________ Ltd. (Auction Company) and submit our commercial bid. We shall also abide by the procedures prescribed for online auction by the auction company. 5. We, hereby confirm that we will honor the Bids placed by us during the auction process, failing which we shall forfeit the EMD. We also understand that the bank may debar us from participating in future tenders. 6. We confirm having nominated Mr ________________, designated as ______________ of our company to participate in the Reverse Auction on behalf of the company. We undertake that the company shall be bound by the bids made by him in the Reverse Auction. 7. We undertake to submit the confirmation of last bid price by us to the auction company/ Bank within 48 working hours of the completion of event. We also undertake to submit the Bill of Materials for the TCO (Total Cost of Ownership) in terms of RFP. Signature with company seal Name : Company/ Organization : Designation within Company / Organization : Address of Company / Organization: Date: Name of Authorized Representative: Signature of Authorized Representative: Verified above signature Signature of Competent Authority: Date:

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Annexure-RA-2: Process Compliance Form (The Bidders are required to print this on their company‟s letter head and sign, stamp before submitting) Letter of Authority for participation in Reverse Auction To, The General Manager Andhra Bank Dept. of Information Technology, Andhra Bank, D Block, III Floor, Cyber Gateway, Hitec City, Madhapur, Hyderabad – 500081

Date :

1. We ______________________ (name of the company) have submitted our bid for participating in Bank‟s RFP dated _________ for procurement of ____________. 2. We also confirm having read and understood the terms of RFP as well as the Business Rules relating to the Reverse Auction for this RFP process. 3. As per the terms of RFP and Business rules, we nominate Mr. ______________, designated as ______________ of our company to participate in the Reverse Auction. 4. We accordingly authorize Bank and / or the Auction Company to issue user ID and password to the above named official of the company. 5. Both Bank and the auction company shall contact the above named official for any and all matters relating to the Reverse Auction. 6. We, hereby confirm that we will honor the Bids placed by Mr. __________ on behalf of the company in the auction process, failing which we will forfeit the EMD. We agree and understand that the bank may debar us from participating in future tenders for any such failure on our part. Signature with company seal Name : Company/ Organization : Designation within Company / Organization : Address of Company / Organization: Date: Name of Authorized Representative: Signature of Authorized Representative: Verified above signature Signature of Competent Authority: Date:

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