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Co branding of ATM Debit Card Services with Kerala State Co

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					                   Co-branding of ATM Debit Card Services
                                    with
                     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
Ltd.

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
cards.

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
          partnering bank.

       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




                                     Co-brand ATM Debit Card * * * Kerala State Co-operative Bank Ltd.* * * Page 1 of 7
IV.   Terms of Reference.

      1.   Background.

                 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
           country.

                   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


                             Co-brand ATM Debit Card * * * Kerala State Co-operative Bank Ltd.* * * Page 2 of 7
     bank is already functioning with full-fledged international core
     banking software – Flexcube 6.2 – supported by Oracle Financial
     Services Software Ltd.

2.   Objectives.

            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
            partnering bank.

     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
            entry.

     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
                bank.

     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.




                         Co-brand ATM Debit Card * * * Kerala State Co-operative Bank Ltd.* * * Page 3 of 7
     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-
            conditioning works.

     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.




                    Co-brand ATM Debit Card * * * Kerala State Co-operative Bank Ltd.* * * Page 4 of 7
           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
               manufactures.

           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.

     d.    Schedule.

          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
           in India.
     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.


                          Co-brand ATM Debit Card * * * Kerala State Co-operative Bank Ltd.* * * Page 5 of 7
     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
           Verifications.
     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
     EOI submitted.

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
     Email: kscbit@kscb.co.in

     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”.




                        Co-brand ATM Debit Card * * * Kerala State Co-operative Bank Ltd.* * * Page 6 of 7
     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.




                       Co-brand ATM Debit Card * * * Kerala State Co-operative Bank Ltd.* * * Page 7 of 7

				
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