Co-branding of ATM Debit Card Services
Kerala State Co-operative Bank Ltd.
EXPRESSION OF INTEREST
I. Title of Proposal.
Co-branding of ATM Debit Card Services with Kerala State Co-operative Bank
II. Objectives of the Proposal.
Kerala State Co-operative Bank Ltd. (KSCB) proposes to provide ATM
debit card services to its customers. For, the Bank has decided to enter into a
contract with nationalized / scheduled banks that are providing these services to
their customers and issue co-branded ATM debit cards to the customers of
KSCB. The customers of KSCB can thus enjoy the conveniences of ATM debit
III. Scope of Work.
Kerala State Co-operative Bank Ltd. will provide space for setting up
ATMs in various locations in Kerala. The partnering bank is expected to
undertake the following as part of its association with KSCB :
1. To set up ATM machines in the locations provided under Design - Build – Operate –
Maintain (DBOM) method of project delivery.
2. To facilitate the customers of KSCB to carry out the banking operations through the
ATMs established under DBOM and through the existing ATM network of the
3. The number of ATMs and the number of cards to be issued in the first three years are
expected as given below:
First Year 15 ATM machines 10000 ATM debit cards
Second Year 5 more ATM machines 10000 more ATM debit cards
Third Year 5 more ATM machines 10000 more ATM debit cards
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IV. Terms of Reference.
The Kerala State Cooperative Bank Ltd. is the apex bank of
the Cooperative Banks in Kerala that are approved by the Registrar
of Cooperative Societies, Government of Kerala. All the 14 District
Cooperative Banks in the State and the Government of Kerala are
the members and shareholders of the Bank. From 1st March 1966
onwards the Kerala State Cooperative Bank Ltd. was brought
under the control of Reserve Bank of India (RBI). In July 1966, the
RBI as per the provisions contained under second schedule of RBI
Act, approved the Bank as a ‘Scheduled State Cooperative Bank’.
The Kerala State Cooperative Bank is the first scheduled Apex
Cooperative Bank in the Cooperative Banking Sector in the
Country. In 1972, RBI issued license to Kerala State Cooperative
Bank for doing banking business. At present, Kerala State
Cooperative Bank is not only the leader of cooperative sector in the
state but also a model for cooperative banking structure in the
The Headquarters of the Bank is in Thiruvananthapuram
where it has its Head Office at COBANK Towers, Palayam,
Thiruvananthapuram. The Bank operates through a network of 20
branches covering 12 out of 14 Districts in the State. It has plans to
open branches in the 2 remaining Districts of the State also in the
near future. In addition, the Bank has three Regional Offices - one
each at Thiruvananthapuram, Ernakulum and Kozhikode, for
effective supervision and control of its own branches as well as the
constituent District Co-operative Banks. The operations of the bank
are controlled by the Managing Director, who is appointed by
Government of Kerala. At present there are 253 employees in the
rolls of the Bank.
KSCB, as the Apex Bank of credit cooperatives in Kerala,
guides, supervises, coordinates, monitors and controls all the 14
District Co-operative Banks (DCB) and through these DCBs to 1587
Primary Agricultural Cooperative Societies (PACS) in the State.
The Bank finances the Apex Cooperative Institutions and extends
direct credit to individuals. Since July 1966, KSCB is permitted to
perform banking functions as per the Banking Regulation Act. The
Bank is doing the basic banking functions of accepting deposits and
lending loans through its branches.
The customer base of KSCB has grown considerably over the
years and extending the conveniences of present day banking
services to the customers of KSCB is hence seen as a necessity. The
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bank is already functioning with full-fledged international core
banking software – Flexcube 6.2 – supported by Oracle Financial
Services Software Ltd.
KSCB proposes to fully outsource issuing of co-branded ATM Debit
Cards to its customers by partnering with leading nationalized / scheduled
banks in the country. The following capabilities and features are envisaged:
a. Compatible with the Bank’s core banking solution, Flexcube 6.2,
and capability to interconnect with the ATM switches of the
b. Capable of supporting PIN based authentication.
c. Capable to provide adequate security for transactions.
d. Availability of suitable user-friendly features.
e. Capable of disabling users after three attempts of wrong password
f. Capable of validation of ATM cards.
g. Capable of password verification.
h. Capable of locking the account after three wrong attempts.
i. Capable of integrating to any network if the Bank desires.
3. Tasks to be Carried Out.
a. Issue of Cards.
i. General. The partnering bank will have to prepare the cards
of the customers as required by KSCB for issuing directly to the
customers by KSCB.
ii. Specifications. The cards are to be of standard specifications
and compatible for use in the ATM machines of the partnering
b. ATM Services.
i. General. Other than the ATM machines set up under the
partnership, the partnering bank is expected to extend the
ATM services through the ATM counters of the partnering
branch spread across the country.
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ii. Specifications. The ATM machines and its counters are to be
of standard specifications and available to the customers round
the clock. The services to be provided to the customers of KSCB
include cash withdrawal, balance enquiry and mini-statement
enquiry. The withdrawal limit and the number of transactions
in a day / month will be as desired by KSCB.
iii. Debit Card should support with any one of the VISA /
MasterCard / RuPay.
c. Specific Tasks and Responsiblities.
i. The card holders of the KSCB will get all the rights to
perform transactions at the ATM counters of the partnering
bank free of charges.
ii. KSCB will identify the locations and the partnering bank
has to install the ATMs on these locations.
iii. The cost of setting up the site except installations of
machineries and connectivity is desired to be borne by KSCB
through the approved contractors and approved rates of KSCB.
The cost components include civil, interior, electrical and air-
iv. The ownership of machinery and connectivity will remain
with the sponsoring bank.
v. The appearance and contents of displays including names of
the banks at the ATM counters will be as per a standard design
proposed by the partnering bank and approved by KSCB.
vi. The charges for the successful financial and non-financial
transactions through the ATMs would be paid by KSCB on
mutually agreed rates arrived at through this EOI process.
vii. Responsibility for maintaining statutory requirements for
RBI/VISA/MASTERCARD/NPCI and all other requirements
related to ATMs from time to time will rest with the partnering
bank without any additional cost.
viii. Designing and printing of ATM debit cards will be arranged
and executed by the approved service provider(s) of the
partnering bank and the actual cost for the same will be borne
by the KSCB at mutually agreed rates.
ix. Cash management including cash loading and connectivity
expenses will be borne by the partnering bank.
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x. Connectivity expenses with the switch provider of the
partnering bank will be borne by KSCB on negotiated rates.
xi. Reconciliation of transactions, generation of accounting
related data and reports will be carried out by partnering bank.
xii. Any issues with the ATM transaction will be handled by the
partnering bank. The customer support facility of the
partnering bank will be extended to the customers of KSCB
who are issued with the co-branded ATM debit cards without
any additional charge.
xiii. The ATMs installed should be of UL 291 Level 1 Compliant,
of good quality and of standard size from reputed
xiv. Settlement of payment: KSCB Bank will open a Current
account with the partnering bank and will keep minimum
average daily balance as mutually agreed. This will be reviewed
from time to time depending on volume of transactions. The
next day settlement (T+1) is preferred by KSCB.
xv. ATM uptime availability need to be 99.99% with minimum
data loss in the event of unforeseen disasters.
1 EOI submission 12 July 2012 ,11 AM
2 EOI opening 12 July 11.30 AM
3 Short listing 13 July 2012
4 Discussions and negotiations 16 July 2012
4. Eligibility Norms. The eligibility norms of the applicant banks
for submitting the EOI are as follows. Documental evidence in
support of the claims may become necessary at the time of
discussions and negotiations :
a. The applicant bank must be a nationalized / scheduled bank
b. The applicant bank must have at least 100 ATM counters in
Kerala covering all the 14 district in Kerala.
c. The applicant bank is an 'A' class member of National
Paymnet Corporation of India (NPCI).
d. The applicant bank must not have been blacklisted by any
Government or any Government agencies or RBI/NPCI
e. The applicant bank must have own service centres in
Kerala/India with 24x7 support.
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f. The applicant bank must have the technical capability to
provide technical services like integration of the Core
Banking solution Flexcube of the Bank with the ATM
services of the applicant.
g. The applicant bank must have HSM module for PIN
h. The applicant bank must have the systems to address
customer grievances and follow the timeframe stipulated by
RBI/NPCI for resolving the issues.
5. Documents / information available to enable bidders to submit
their proposal. More information about KSCB is available at
www.keralacobank.com. For any other specific information, the contact
person given under item 8 may be contacted.
6. Responsibilities of KSCB. Subject to the rules of KSCB, the bank will
extend all help to the applicant banks for submitting the EOI and to select
the partnering bank through technical and financial evaluations of the
7. Details of Contact Person for Clarification.
N.Rahim, Deputy General Manager, IT Department,
Kerala State Co-Operative Bank Ltd., Cobank Towers,
Vikasbhavan P.O, Palayam, Thiruvananthapuram-695033
Phone: 0471- 2547203 (Land line), 9446462228 (Mobile)
Time: 9.30 AM to 5 PM on all days except Sundays
8. Submission of Proposal. The EOI proposals are to be submitted in the
format of two cover system – technical proposal and financial proposal.
The technical proposals will be evaluated by a committee constituted by
KSCB. Based on the recommendations of the Committee, the applicant
banks will be invited for discussions.
a. Contents of Technical Proposal.
i. Details of project delivery method.
ii. System design.
iii. Details of relevant experience.
iv. Documentary support wherever necessary.
The Technical Proposal is to be submitted in a sealed cover superscribed
as “Technical Proposal - Co-branding of ATM Debit Card services with
Kerala State Co-operative Bank Ltd”.
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b. Contents of Financial Proposal.
i. Rate per financial transaction in the co-branded ATMs.
ii. Rate per non-financial transaction in the co-branded ATMs
iii. Rate per financial transaction in other ATMs
iv. Rate per non-financial transaction in other ATMs
v. Fees for Card Management
vi. Any other charges with details
The financial proposal is to be submitted separately in another sealed
cover superscribed as “Financial Proposal - Co-branding of ATM Debit
Card services with Kerala State Co-operative Bank Ltd”.
9. General Information.
EOI will be received till 11.00 AM on 12 July 2012. Proposals in
sealed cover have to be addressed to The Managing Director, Kerala
State Co-operative Bank Ltd., Cobank Towers, Vikas Bhavan PO,
Palayam, Thiruvananthapuram – 695033.
All costs & expenses associated with submission of EOI shall be
borne by the applicant bank and KSCB shall have no liability in any
manner in this regard if it decides to terminate or suspend the
process of evaluating the EOI applications for any reason
whatsoever. The right to accept or reject any or all EOIs at any
stage of the process and/or to modify the process or any part thereof
at any time without assigning any reason is reserved by KSCB
without any obligation or liability whatsoever.
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