Request for Proposal for Application Audit by gdx67036

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									Request for proposal for the implementation
of Core Banking Solution in Regional Rural
Banks sponsored by Andhra Bank
Reference No. 666/35/RRB-RFP/2009-10/16 dt. 02-03-2010
                                                                                     Andhra Bank
                                  RFP for implementation of CBS in RRBs sponsored by Andhra Bank
                                                                                   February 2010




Contents

1      Preface                                                                                3
1.1    About this RFP                                                                         3

2      About Regional Rural Banks sponsored by Andhra Bank                                    5
2.1    About Andhra Bank                                                                      5
2.2    Profile of Chaitanya Godavari Grameena Bank (CGGB).                                    5
2.3    Profile of Rushikulya Gramya Bank                                                      9

3      Objective and Scope of the Project.                                                  13
3.1    Objective                                                                            13
3.2    Specific Goals and Scope of the Project.                                             13
3.3    Goals of the Project.                                                                13
3.4    Scope of the Project                                                                 14
3.5    Implementation Scope for CBS                                                         15
3.6    Branch-wise implementation Projections                                               17

4      Core Banking Solution Software requirements.                                         19
4.1    Finacle Universal Banking Solution.                                                  19
4.2    Comprehensive Customer Information File:                                             19
4.3    CASA Accounts – Common:                                                              20
4.4    Current Accounts                                                                     26
4.5    Savings Bank Accounts                                                                26
4.6    Temporary Overdraft (TOD) in Current and Savings Accounts (CASA)                     27
4.7    Term Deposits                                                                        27
4.8    Advances                                                                             32
4.9    Inland Bills.                                                                        37
4.10   Bank Guarantees.                                                                     39
4.11   Branch Side Operations – Cash module.                                                40
4.12   Branch side operations - Clearing module.                                            41
4.13   Branch side operations – Remittances module                                          42
4.14   General Requirements                                                                 42
4.15   Nominal Heads                                                                        46
4.16   Head Office Accounts                                                                 47
4.17   Audit Requirements                                                                   47
4.18   Service Tax                                                                          48
4.19   Management Information Systems                                                       49
4.20   Application Software Features                                                        49
4.21   Functional requirements                                                              49

5      Hardware requirements.                                                               52
5.1    Hardware & Operating System requirement                                              52



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                                                                                      Andhra Bank
                                   RFP for implementation of CBS in RRBs sponsored by Andhra Bank
                                                                                    February 2010




5.2    Supply of Hardware                                                                    52
5.3    Backup – Recovery – Replication Requirements                                          54
5.4    Acceptance of Hardware                                                                55
5.5    Additional Information                                                                56
5.6    Core Banking Solutions – Hardware Sizing                                              56

6      Implementation and maintenance services.                                              63
6.1    Software implementation.                                                              63
6.2    Hardware implementation.                                                              64
6.3    Handholding support at branches.                                                      64
6.4    Resources for Helpdesk.                                                               64
6.5    Resources for ongoing support.                                                        65
6.6    Warranty and Annual Technical Support for Finacle and RDBMS.                          65
6.7    Warranty and Annual Maintenance Contract for Hardware.                                66

7      List of Indicative Deliverables                                                       67
7.2    Deliverables for the Solution                                                         67
7.3    Systems Deliverables                                                                  68
7.4    Training                                                                              68
7.5    Resources support:                                                                    68

8      Technical Bid – Organisation and formats.                                             70
8.2    Documents required as part of bidder‘s profile:                                       70
8.3    Documents required as part of Technical Proposal.                                     70
8.4    Cost of Bid documents                                                                 71
8.5    Earnest Money Deposit.                                                                71

9      Commercial Bid - Format for Bill of Materials                                         72
9.2    Application Software                                                                  73
9.3    Application Software Customization and implementation.                                74
9.4    Hand holding support at Branches.                                                     75
9.5    Training.                                                                             75
9.6    Hardware Requirements                                                                 76
9.7    Operating Systems:                                                                    77
9.8    Relational Database Management Systems                                                78
9.9    Work stations and other requirements at Data Center / DRC.                            79
9.10   Annual Technical Support and Annual Maintenance Contract.                             80
9.11   Resources for ongoing support.                                                        82
9.12   Summary of Cost and Total Costs                                                       84

10     Payment Terms.                                                                        87
10.1   Payment Schedule                                                                      87
10.2   Project Implementation Costs.                                                         88
10.3   Project Life cycle Costs                                                              89



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                                                                                     Andhra Bank
                                  RFP for implementation of CBS in RRBs sponsored by Andhra Bank
                                                                                   February 2010




10.4    Procedure for Claiming Payments                                                     90

11      Eligibility Criteria                                                                91
11.2    Eligibility of Bidders                                                              91
11.3    Experience of the Bidder in implementing Core Banking Solutions                     91

12      Evaluation Process                                                                  93
12.1    Objective of Evaluation Process                                                     93
12.2    Technical Bid Evaluation Process                                                    93
12.3    Scoring Methodology for Functional Requirements                                     94
12.4    Scoring Methodology for Technical and Solution Requirements                         94
12.5    Scoring Methodology for Structured Walkthrough                                      95
12.6    Scoring Methodology for Past experience                                             96
12.7    Scoring Methodology for Vendor Presentations                                        96
12.8    Consolidated Score in Technical Bid Evaluation                                      98
12.9    Disqualification Parameters in Technical Bid Evaluation                             98
12.10   Commercial Bid Evaluation                                                           99

13      Bid Submission                                                                    100
13.1    General Terms of Bid Submission                                                    100
13.2    Cost of Bid                                                                        101
13.3    Earnest Money Deposit (EMD).                                                       101
13.4    Two Stage Bidding Process                                                          102
13.5    Sealing and Marking of Bids                                                        103
13.6    Commercial Bid                                                                     103
13.7    Bid Submission                                                                     104
13.8    Clarifications on the Tender Documents                                             105
13.9    Amendments to Tender Documents                                                     105
13.10   Correction of Errors                                                               105
13.11   Confidentiality                                                                    106
13.12   Indemnification                                                                    106
13.13   Notification of Award                                                              106
13.14   Signing of Contract                                                                106
13.15   Jurisdiction                                                                       106
13.16   Other Terms and Conditions                                                         107
13.17   Contact Details                                                                    107
13.18   Evaluation Schedule                                                                108

Annexure - 1 Compliance Certificate                                                       109

Annexure - 2 Bidder Profile                                                               110

Annexure - 3 Confirmation of Soft Copy                                                    112



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                                                                                Andhra Bank
                             RFP for implementation of CBS in RRBs sponsored by Andhra Bank
                                                                              February 2010




Annexure - 4 Credentials – Core Banking Solutions implemented by
      the Bidder.                                                113

Annexure - 5 Team Profile                                                            114

Annexure - 6 Project Plan and Resource Deployment                                    115

Annexure - 7 Query Format                                                            116

Annexure - 8 Non – Disclosure Agreement Format                                       117

Annexure - 9 Write up on Products and Services of Chaitanya
      Godavari Grameena Bank.                                                        119

Annexure - 10 Write up on Products and Services of Rushikulya
      Gramya Bank.                                                                   134
13.19   138

Annexure - 11 Write up on.                                                           149




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                                                                                                                      Andhra Bank
                                                                   RFP for implementation of CBS in RRBs sponsored by Andhra Bank
                                                                                                                    February 2010




List of Tables
Table 2-1 CGGB Business Indicators ................................................................................................ 5
Table 2-2 CGGB Branch distribution ................................................................................................ 7
Table 2-3 CGGB Products and Services ............................................................................................ 7
Table 2-4 RGB Business Indicators ................................................................................................... 9
Table 2-5 RGB Branch distribution ................................................................................................. 10
Table 2-6 RGB Products and Services ............................................................................................. 11
Table 3-1 Scope of the CBS Project for Andhra Bank sponsored RRBs ........................................... 15
Table 3-2 Project schedule .............................................................................................................. 17
Table 5-1 RRB CBS Server sizing parameters ................................................................................ 56
Table 5-2 RRB CBS – Additional inputs for Solution Sizing ......................................................... 57
Table 5-3 Information on existing business for solution sizing. ....................................................... 59
Table 5-4Business projections for 5 year period for solution sizing. ................................................ 60
Table 9-1 AB RRB CBS Commercial Bid Format for Application Software ................................... 73
Table 9-2 AB RRB CBS Commercial Bid Format for Application Software customisation and
implementation. .............................................................................................................................. 74
Table 9-3 AB RRB CBS Commercial Bid Format for Handholding support ................................... 75
Table 9-4 AB RRB CBS Commercial Bid Format for Handholding support (Optional costs beyond
50 branches) ................................................................................................................................... 75
Table 9-5 AB RRB CBS Commercial Bid Format for Training....................................................... 75
Table 9-6 AB RRB CBS Commercial Bid Format for Hardware for DC ......................................... 76
Table 9-7 AB RRB CBS Commercial Bid Format for Hardware for DRC ...................................... 77
Table 9-8 AB RRB CBS Commercial Bid Format for RDBMS for DC ........................................... 78
Table 9-9 AB RRB CBS Commercial Bid Format for RDBMS for DRC ........................................ 78
Table 9-10 AB RRB CBS Commercial Bid Format for Workstations (DC)..................................... 79
Table 9-11 AB RRB CBS Commercial Bid Format for Workstations (DRC) .................................. 79
Table 9-12 AB RRB CBS Commercial Bid Format for Annual Technical Support Charges –
Application Software. ..................................................................................................................... 80
Table 9-13 AB RRB CBS Commercial Bid Format for Annual Technical Support Charges – Oracle
RDBMS etc.(DC) ........................................................................................................................... 80
Table 9-14 AB RRB CBS Commercial Bid Format for Annual Technical Support Charges – Oracle
RDBMS etc. (DRC) ........................................................................................................................ 80
Table 9-15 AB RRB CBS Commercial Bid Format for Annual Maintenance Contract Charge – DC
Hardware. ....................................................................................................................................... 81
Table 9-16 AB RRB CBS Commercial Bid Format for Annual Maintenance Contract Charges –
DRC Hardware ............................................................................................................................... 81
Table 9-17 AB RRB CBS Commercial Bid Format for Annual Maintenance Contract Charge - DC
Workstations ................................................................................................................................... 81
Table 9-18 AB RRB CBS Commercial Bid Format for Annual Maintenance Contract Charges
(DRC)............................................................................................................................................. 82
Table 9-19 AB RRB CBS Commercial Bid Format for Manpower resources provisioning (DC) .... 82
Table 9-20 AB RRB CBS Commercial Bid Format for Manpower resources provisioning (DRC) 83
Table 9-21 AB RRB CBS Commercial Bid Format - Consolidation................................................ 84
Table 10-1 AB RRB CBS– Payment Terms.................................................................................... 87
Table 10-2 AB RRB CBS– Payment Terms – Project Implementation Costs. ................................. 88
Table 10-3 AB RRB CBS– Payment Terms – Project Life Cycle Costs .......................................... 89




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                                                                                                                      Andhra Bank
                                                                   RFP for implementation of CBS in RRBs sponsored by Andhra Bank
                                                                                                                    February 2010




Table 12-1 AB RRB CBS – Functional specifications mapping document for Technical Bid
evaluation ....................................................................................................................................... 94
Table 12-2 AB RRB CBS – TEVS Weightage Distribution ............................................................ 98
Table 13-1Evaluation Schedule ..................................................................................................... 108




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                                                                                                          Andhra Bank
                                                       RFP for implementation of CBS in RRBs sponsored by Andhra Bank
                                                                                                        February 2010




1        Preface

1.1      About this RFP

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

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

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

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

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

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

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

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

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

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

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




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                                                                                                        Andhra Bank
                                                     RFP for implementation of CBS in RRBs sponsored by Andhra Bank
                                                                                                      February 2010




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




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                                                                                                          Andhra Bank
                                                       RFP for implementation of CBS in RRBs sponsored by Andhra Bank
                                                                                                        February 2010




2       About Regional Rural Banks sponsored by Andhra Bank

2.1     About Andhra Bank

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

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

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

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

2.2     Profile of Chaitanya Godavari Grameena Bank (CGGB).

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

2.2.2   The shareholding pattern of the RRB is
                      Government of India     :             50%
                      Andhra Bank :                         35%
                      Government of Andhra Pradesh:         15%
2.2.3   CGGB’s Business Indicators as on 31st December, 2009.

        Table 2-1 CGGB Business Indicators

        Business Indicator                                                        Rs. In Lakhs

        Net Worth                                                                    6081.93

        Total Business                                                              121337.57

        Total Deposits                                                              55014.95

        Aggregate Deposits                                                          54018.47

        Gross Bank Credit                                                           66322.62




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                                                                                               Andhra Bank
                                            RFP for implementation of CBS in RRBs sponsored by Andhra Bank
                                                                                             February 2010




Business Indicator                                                     Rs. In Lakhs

Low Cost Deposits                                                        16592.56

Operating Profit                                                          1385.57

Net Profit                                                                1385.57

Interest Income                                                           5951.73

Interest Expenditure                                                      3313.09

Net Interest Income                                                       2638.64

Non Interest Expenditure                                                  1817.09

Credit Deposit Ratio                                                       120.55

Investments                                                              13985.44

Turnover in Credit Card Merchant Business                                    Nil

Standard Assets                                                          65573.16

Capital Adequacy Ratio (CRAR)                                              15.92

Per Employee Business                                                      311.12

Priority Sector Advances                                                 51990.53

Advances to Agriculture                                                  49389.83

Credit extended to SME Sector                                              741.41

Retail Lending                                                             377.07

Credit extended to Housing Sector                                          891.97

Educational Loans                                                          590.20

Number of Self Help Groups (SHGs) to whom Bank                             17911
has extended finance to




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                                                                                                          Andhra Bank
                                                       RFP for implementation of CBS in RRBs sponsored by Andhra Bank
                                                                                                        February 2010




2.2.4     Organisation Structure

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

2.2.5     Head Office and Controlling (Regional) office

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

2.2.6     Branches

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

2.2.6.2     The following table gives details of branches based on category
          Table 2-2 CGGB Branch distribution

          District                 Urban Branches     Semi-urban Branches             Rural Branches
          Guntur                                 8                20                            34
          East Godavari                          2                 6                            13
          West                                   3                 2                            15
          Godavari
          Total                                  13               28                            62

2.2.7     Products and Services offered by CGGB are as follows:
          Table 2-3 CGGB Products and Services

          DEPOSITS                                    ADVANCES
          Current Deposits                            Loans against Deposits
          Savings Bank Accounts                       Loans against KVPs, NSCs, LIC policies
          Nirbhaya Savings Bank (Insurance            Loans against Shares and Mutual Funds
          Linked)
          Nirbhaya Gold Savings Bank (Insurance       Loans against Gold (Non-Agricultural)
          Linked)
          Suraksha Savings bank (Insurance            Clean Loans
          Linked)
          Suraksha Gold savings Bank (Insurance       Loans against Merchandise
          Linked)
          No Frills Account                           Personal Loans for Consumer Durables, Motor
                                                      Vehicles
          Fixed deposits                              Other term Loans against Mortgage of Property
          Kalpalatha Deposits                         All Staff Loans
          Tax Saver Deposits                          Housing Loans to Staff



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                                                                                                     Andhra Bank
                                                  RFP for implementation of CBS in RRBs sponsored by Andhra Bank
                                                                                                   February 2010




          Cash Certificates                      Additional Housing Loans to Staff
          Recurring Deposits                     Kisan Credit Cards
          Overdue Deposits                       Rythu Mithra Groups
                                                 Joint Liability Groups
                                                 Produce Loans
                                                 Converted Crop and Medium Term Loans
                                                 Rural Credit Card
                                                 Gold Loans Agricultural
                                                 Agricultural Term Loans
                                                 Agricultural Allied Activities
                                                 Indirect Finance to agriculture
                                                 Small Scale Industries
                                                 Transport Operators
                                                 Retail Trade
                                                 Business Enterprises
                                                 Professional & Self-employed
                                                 General Credit Card
                                                 Housing Loans
                                                 Education Loans
                                                 Self Help Groups
                                                 Housing Loans (Indiramma)
                                                 Clean Overdrafts to Staff
                                                 Secured Overdrafts
                                                 Secured Overdrafts against Gold
                                                 Secured Overdrafts against Mortgage of Urban
                                                 property
                                                 Open Cash Credit
                                                 Suit Filed Accounts
                                                 Clean Bills Purchase
                                                 Clean Bills Purchase-Instant Credit
                                                 Swarojgar Credit Cards
                                                 CGC Invoked Accounts
                                                 Bank Guarantees
                                                 Invoked Guarantees Paid
                                                 Temporary Overdrafts
                                                 Solvency Certificate



2.2.8     Existing Computerisation

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




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                                                                                                        Andhra Bank
                                                     RFP for implementation of CBS in RRBs sponsored by Andhra Bank
                                                                                                      February 2010




2.3     Profile of Rushikulya Gramya Bank

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

2.3.2   The shareholding pattern of the RRB is
                       Government of India :       50%
                       Andhra Bank         :       35%
                       Government of Orissa :      15%



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

        Table 2-4 RGB Business Indicators

        Business Indicator                                                      Rs. In Lakhs

        Net Worth                                                                  3643.91

        Total Business                                                            107407.18

        Total Deposits                                                            74791.48

        Aggregate Deposits                                                        74791.48

        Gross Bank Credit                                                         32615.70

        Low Cost Deposits                                                         36045.30

        Operating Profit                                                            987.98

        Net Profit                                                                  130.58

        Interest Income                                                            3875.64

        Interest Expenditure                                                       2413.18

        Net Interest Income                                                        1462.46

        Non Interest Expenditure                                                   1061.02

        Credit Deposit Ratio                                                        43.61

        Investments                                                               46388.90

        Turnover in Credit Card Merchant Business                                     ----




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                                                                                                                  Andhra Bank
                                                               RFP for implementation of CBS in RRBs sponsored by Andhra Bank
                                                                                                                February 2010




          Business Indicator                                                              Rs. In Lakhs

          Standard Assets                                                                   30125.70

          Capital Adequacy Ratio (CRAR)                                                       12.76

          Per Employee Business                                                               315.90

          Priority Sector Advances                                                          22204.19

          Advances to Agriculture                                                            7744.95

          Credit extended to SME Sector                                                       555.03

          Retail Lending                                                                     3823.17

          Credit extended to Housing Sector                                                  1255.16

          Educational Loans                                                                   168.03

          Number of Self Help Groups (SHGs) to whom Bank                                       1905
          has extended finance to


2.3.4     Organisation Structure

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

2.3.5     Head Office

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

2.3.6     Branches

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

2.3.6.2   The following table gives details of branches based on category

          Table 2-5 RGB Branch distribution
          District                            Urban Branches      Semi Urban Branches          Rural Branches
          Ganjam                                     9                     14                           48
          Gajapathi                                  -                      1                            9
          Total                                      9                     15                           57




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                                                                                                          Andhra Bank
                                                       RFP for implementation of CBS in RRBs sponsored by Andhra Bank
                                                                                                        February 2010




2.3.7   Products and Services offered by RGB are as follows:
        Table 2-6 RGB Products and Services
        DEPOSITS                              ADVANCES
        Current Deposits                      Loans against Deposits
        Savings Bank Accounts                 Loans against KVPs, NSCs, LIC policies
        Suraksha Savings Bank                 Mortgage Loans
        Rushikulya Jeevan Suraksha            Loans against Gold (Non-Agricultural)
        No Frills Account                     Clean Loans
        Fixed deposits                        Loans against Merchandise
        Kalpabata Deposits                    Personal Loans for Consumer Durables, Motor Vehicles
        Tax Saver Deposits                    Other term Loans for High Value Advances
        Cash Certificates                     All Staff Loans
        Recurring Deposits                    Housing Loans to Staff
        Rushikulya Sarvashreshta              Additional Housing Loans to Staff
                                              Rushikulya Bank Kisan Credit Cards
                                              Rythu Mithra Groups
                                              Kisan Yagna (Two Wheeler Loans)
                                              Joint Liability Groups
                                              Advance against Rent Receivables
                                              Gold Loans Agricultural
                                              Agricultural Term Loans
                                              Agricultural Allied Activities
                                              Indirect Finance to agriculture
                                              Small Scale Industries
                                              Transport Operators
                                              Retail Trade
                                              Business Enterprises
                                              Professional & Self-employed
                                              General Credit Card
                                              Housing Loans
                                              Education Loans
                                              Self Help Groups
                                              Rushikulya Laghu Udyog Credit Card
                                              Clean Overdrafts to Staff
                                              Secured Overdrafts
                                              Secured Overdrafts against Gold
                                              Secured Overdrafts against Real Estate
                                              Open Cash Credit
                                              Suit Filed Accounts
                                              Clean Bills Purchase
                                              Clean Bills Purchase-Instant Credit
                                              Rushikulya Swarojgar Credit Cards
                                              CGC Invoked Accounts
                                              Bank Guarantees
                                              Invoked Guarantees Paid
                                              Temporary Overdrafts




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                                                                                                         Andhra Bank
                                                      RFP for implementation of CBS in RRBs sponsored by Andhra Bank
                                                                                                       February 2010




2.3.8     Existing Computerisation in RGB.

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

2.3.9     Products and Services offered by the RRBs

          Both the RRBs offer all Banking services to the clients with special focus on Rural Lending. The
          service in brief include the following:
                Current Deposits
                Savings Bank Accounts (including Insurance linked schemes)
                Term Deposits
                Overdrafts
                Cash Credits (including Kisan Cards)
                Demand and Term Loans
                Remittances (Drafts and Pay orders)
                Clearing
                Cash
                Bills and Cheques (inward and outward)
                Bank Guarantees
                Lockers (system support not expected for Lockers maintenance)




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                                                                                                          Andhra Bank
                                                       RFP for implementation of CBS in RRBs sponsored by Andhra Bank
                                                                                                        February 2010




3       Objective and Scope of the Project.

3.1     Objective

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

3.2     Specific Goals and Scope of the Project.

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

3.3     Goals of the Project.

3.3.1   Following are the goals of the project:

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

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

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

           Introduce National Electronic Funds Transfer

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

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

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

           Enable Financial Inclusion.




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                                                      RFP for implementation of CBS in RRBs sponsored by Andhra Bank
                                                                                                       February 2010




3.4     Scope of the Project

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

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

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

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

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

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

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

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




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                                                                             RFP for implementation of CBS in RRBs sponsored by Andhra Bank
                                                                                                                              February 2010




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

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

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

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

             Addition of more branches, offices under CBS

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

             Addition of Features / Modules

             Any other component of the project

3.5      Implementation Scope for CBS

3.5.1    The scope broadly as follows:
         Table 3-1 Scope of the CBS Project for Andhra Bank sponsored RRBs

         Component                                         Requirement                                 Remarks

         Finacle Application Software                      For two RRBs @100 each as The rates are to be valid for a
                                                           initial lot with option to buy in minimum contractual period of
                                                           the bundles of 10 additional 5 years.
                                                           licenses for each RRB at an
                                                           optional cost.

         Oracle RDBMS licenses                             As required by the proposed
                                                           hardware

         Middleware/any                         other Any other licensed component
         components required                          required for Finacle CBS
                                                      implementation




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                                             RFP for implementation of CBS in RRBs sponsored by Andhra Bank
                                                                                              February 2010




Finacle CBS customisation as                                           Detailed      System    Study,
per                requirements,                                       Business Process Definition,
implementation support – Pilot                                         Providing environment for User
consisting of 10 branches.                                             Acquaintance        and   User
                                                                       Acceptance Tests etc. will also
                                                                       form part of this item.

Data upload/migration support      For all 184 units. Data Center Data will be provided by the
                                   level activity.                Bank in Finacle uploadable
                                                                  formats. The formats are to be
                                                                  provided by the vendor with
                                                                  proper explanation of the fields.
                                                                  The uploading to Finacle
                                                                  production     system       during
                                                                  migration with mock activity in
                                                                  the test system falls in the scope
                                                                  of this item.

Handholding support (Onsite)       For first 50 branches (25 With onsite resource for one
                                   branches for each RRB)    week per branch beginning
                                                             usually Sunday to Friday for 6
                                                             days.

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

Application Support                With a minimum of            3 From Andhra Bank, DIT, Cyber
                                   resources duly adjusting the Gateway
                                   shifts in accordance with the
                                   functioning and volumes of the
                                   RRBs.

Oracle DBA                         With a minimum onsite support
                                   and to provision required
                                   number of man days.
                                   Web servers
Hardware                                                               It is envisaged to have separate
                                   App Servers
                                                                       instances for each RRB on the
                                   DB Servers
                                                                       same set of servers.
                                   Storage
                                   Tape Library
                                   Test systems for Finacle            High availability, redundancy is
                                                                       to be ensured with architectural




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                                                                                                            Andhra Bank
                                                         RFP for implementation of CBS in RRBs sponsored by Andhra Bank
                                                                                                          February 2010




                                                                                   optimization               without
                                                                                   jeopardizing security.

        Hardware installation Services       Depending on Hardware sized           This is an end to end activity
                                             and included in Bill of Material.     including OS hardening etc. and
                                                                                   as needed by Oracle/Finacle.

        Hardware maintenance services        On going maintenance support          This is besides warranty and
                                             for 5 years.                          Annual Maintenance Contract.
                                                                                   These resources have to extend
                                                                                   onsite maintenance services for
                                                                                   all Hardware / OS / Storage /
                                                                                   Tape Library etc. and always
                                                                                   work in coordination with
                                                                                   Oracle DBA and Application
                                                                                   team.

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



3.5.2   The above requirements are detailed in following sections.

3.6     Branch-wise implementation Projections
        Table 3-2 Project schedule

        Serial                       Phase                        Scope Inclusion                  Completion
         No.                                                                                        Deadline

        1             Pilot –5 Branches in each RRB        Included as mandatory scope 10th July 2010
                                                           for end to end roll out
                                                           service including hand
                                                           holding support

        2             Phase I Rollout – 25 Branches in     Included as mandatory scope 31st August 2010
                      each RRB (cumulative)                for end to end roll out
                                                           service including hand
                                                           holding support

        3             Phase II Rollout – 50% of branches Data uploading and                   25th September 2010



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                                                                                                 Andhra Bank
                                              RFP for implementation of CBS in RRBs sponsored by Andhra Bank
                                                                                               February 2010




Serial                 Phase                           Scope Inclusion                  Completion
 No.                                                                                     Deadline
         in each RRB (cumulative)               migration services included.
                                                Handholding support
                                                optional

4        Phase III and Final Rollout – 100%     Data uploading and                 30th December 2010
         of branches in each RRB                migration services included.
                                                Handholding support
                                                optional




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                                                                                                        Andhra Bank
                                                     RFP for implementation of CBS in RRBs sponsored by Andhra Bank
                                                                                                      February 2010




4       Core Banking Solution Software requirements.

4.1     Finacle Universal Banking Solution.

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

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

             Common requirements for all modules
                    o Customer Information System
                    o Signature Capture and Verification

               Cash Module
               Clearing and Service Branch
               Deposits (CASA and Term Deposits)
               Loans and Advances (post sanction)
               Bills
               Guarantees
               Remittances and Inter Branch Reconciliation
               Fees, Service tax, Interest and Charges
               MIS
               General Ledger
               Lockers
               Delivery channel connectivity through Connect24.
               National Electronic Funds Transfer – through Sponsor Bank as per RBI guidelines.

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

4.2     Comprehensive Customer Information File:

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

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




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                                                         RFP for implementation of CBS in RRBs sponsored by Andhra Bank
                                                                                                          February 2010




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

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

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

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

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

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

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

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

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

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

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

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

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

4.3       CASA Accounts – Common:

4.3.1     Account Opening:

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

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

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




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                                                                                                            Andhra Bank
                                                         RFP for implementation of CBS in RRBs sponsored by Andhra Bank
                                                                                                          February 2010




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

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

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

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

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

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

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

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

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

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

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

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

4.3.2      Account Maintenance & General:

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

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




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                                                          RFP for implementation of CBS in RRBs sponsored by Andhra Bank
                                                                                                           February 2010




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

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

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

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

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

4.3.2.8    Allowing Temporary Overdraft (TOD)

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

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

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

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

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

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

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

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

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

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




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                                                          RFP for implementation of CBS in RRBs sponsored by Andhra Bank
                                                                                                           February 2010




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

4.3.2.20   System should block credit transactions in dormant accounts.

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

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

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

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

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

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

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

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

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

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

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

4.3.2.32   Ability to send account statement through e-mail.

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

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

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

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




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                                                                                                          Andhra Bank
                                                       RFP for implementation of CBS in RRBs sponsored by Andhra Bank
                                                                                                        February 2010




4.3.3     Interest:

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

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

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

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

4.3.4     Insurance:

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

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

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

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

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

4.3.5     Service Charges:

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

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




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                                                                                                           Andhra Bank
                                                        RFP for implementation of CBS in RRBs sponsored by Andhra Bank
                                                                                                         February 2010




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

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

4.3.6     Signature Scanning:

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

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

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

4.3.7     Minor accounts:

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

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

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

4.3.8     Reports-general:

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

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

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

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

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

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

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




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                                                                                                          Andhra Bank
                                                       RFP for implementation of CBS in RRBs sponsored by Andhra Bank
                                                                                                        February 2010




4.4       Current Accounts

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

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

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

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

4.5       Savings Bank Accounts

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

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

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

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

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

4.5.6     No Frills Accounts:

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

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




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                                                                                                           February 2010




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

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

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



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

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

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

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

4.6.4     It will be shown both under assets and liabilities

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

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

4.7       Term Deposits

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

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

4.7.3     The system should support basic features as per the Bank‘s requirements such as
                    Account maintenance
                    Transaction maintenance
4.7.4     Term deposit accounts may be accepted in Cash or Transfer

4.7.5     Periodic interest calculation and application

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




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                                                            RFP for implementation of CBS in RRBs sponsored by Andhra Bank
                                                                                                             February 2010




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

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

4.7.9        Deposit receipt printing

4.7.10       Due date notice printing

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

4.7.12       TDS application on interest as per IT act

4.7.13       Nomination facility should be available

4.7.14       Claims and deceased deposit payment

4.7.15       Interest rates calculation procedures for Deposit Interest

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

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

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

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

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

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

4.7.21       System should support checking the balance available in PHINQ.

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

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




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                                                      RFP for implementation of CBS in RRBs sponsored by Andhra Bank
                                                                                                       February 2010




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

4.7.25   System should block Transaction Tab in HOAACTD menu.

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

4.7.27   System should block ACXFRSOL menu for TDA accounts

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

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

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

4.7.31   System should not mask penalty flag in CAAC menu

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

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

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

         Overdue deposits

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

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

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

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



         Fixed Deposits

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

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




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                                                                                                         February 2010




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

4.7.42   Standing instructions can be taken for payment of interest.

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

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

4.7.45   TDS is applicable on interest as per IT Act.

4.7.46   Nomination facility is available

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

         Reinvestment Deposits

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

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

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

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

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

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

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

4.7.55   TDS is applicable on interest as per IT Act.

4.7.56   Nomination facility is available

         Tax Saver Deposits

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

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




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                                                       RFP for implementation of CBS in RRBs sponsored by Andhra Bank
                                                                                                        February 2010




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

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

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

4.7.62   It is for a fixed period of 5 years.

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

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

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

4.7.66   No provision for premature cancellation.

4.7.67   No nomination shall be obtained in case of minor.

         Cash Certificates

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

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

4.7.70   All other features as applicable to Reinvestment Deposits.

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

         Recurring Deposits

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

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

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

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




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                                                        RFP for implementation of CBS in RRBs sponsored by Andhra Bank
                                                                                                         February 2010




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

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

4.7.77   Nomination facility is available

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

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

4.8      Advances

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

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

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

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

4.8.5    Each account should be linked to a party master.

4.8.6    The system should have the ability to specify the category
                   GL level,
                   Tenure of the loan (e.g. demand/ term loan/ working capital term loan) and also to
                    manually classify the loans as desired by the bank
                   Repayment period (short term/medium term/long term)
                   Department code
                   Industry code
                   BSR codes (main codes and sub codes)
                   Sectors and sub-sectors
                   Education (Inland/Abroad)
                   Exports/ tiny/ micro enterprises/ Small Scale Service and Business Enterprises (SSSBE)




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                                                       RFP for implementation of CBS in RRBs sponsored by Andhra Bank
                                                                                                        February 2010




                   Rural/ semi urban/ urban/ metro, based on the place of construction (in case of housing
                    loans)
                   Direct/ Indirect finance
4.8.7    The system should have the ability to capture all data required by the bank for the particular type of
         loan. The system should also have the capability of allowing the user to define additional fields other
         than those available, with ease for additional data capturing.

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

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

4.8.10   The following requirements are related to Limit Maintenance
                   Ability to create/ modify/ cancel group -wise/ party -wise limit structure for funded/ non-
                    funded limits to define main limit, sub limit or break limit
                   Ability to define various limit types e.g. bill limit, CBP limit etc.
                   Ability to maintain multiple limits (including adhoc limits) for a single customer with
                    different expiry dates
                   Ability to define the working capital limits as fund based/ non-fund based and also classify
                    them as regular, single, adhoc, peak/ non-peak etc.
4.8.11   The following requirements are related to Interest Application
                   Ability to define standard interest rate types like BMPLR, STPLR, LIBOR, SUB-PLR,
                    SBIRATE, G-Sec rate etc.
                   Facility to centrally define a minimum interest rate, so that the higher of the customer
                    interest rate and the bank‘s Prime Lending Rate/ MIBOR/ LIBOR etc. is applied
                    automatically by the system
                   Ability to aggregate accounts, as required by the bank, for interest calculation purposes
                    (netting of accounts). Ability to link loan/ advance accounts to credit balances in operative
                    accounts of the customer and charge interest after adjusting the balance
                   Ability to incorporate 'reset' clause for charging interest at account level
                   Ability to define and charge interest based on fixed, variable and fixed variable
                   Ability to centrally define base interest rates like BMPLR (Bench Mark Prime Lending
                    Rate), interest spreads with both + and – values, product -wise, tenure-based, rating-based
                    or sector-based and define additional rate, term premia, interest tax, service tax etc.
                   Ability to define ‗Overdue‘ interest percentage and the conditions for the reckoning of
                    overdues for different type of loans for automatic calculation of OD interest as per the set
                    parameters and ability not to charge ‗overdue‘ interest during holiday/ gestation period
                   Ability to change interest method/ rate for an account/ customer at branch level




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                                                       RFP for implementation of CBS in RRBs sponsored by Andhra Bank
                                                                                                        February 2010




                  Ability to modify interest calculation mode from simple to compound and vice versa for
                   the periods defined by the bank
                  Ability to parameterize the frequency of compounding interest
                  Provision for retrospective/ prospective change in rates of interest to accounts/ schemes/
                   customers/ GLs and automatic recalculation and recovery/ credit of differential interest at
                   the time of application of interest or closure of account
                  Ability to calculate/ recalculate interest, based on ‗value date‘ of transactions
                  Ability to charge simple/ compound interest, based on the crop seasons defined in case of
                   agriculture/ crop loans
                  Ability to maintain interest history at account level/ scheme level/ customer level/ GL
                   level
                  Ability to maintain zero interest accounts (e.g. subsidy)
                  Ability to generate interest calculation report for a previous date (for any given rate) for
                   the purpose of verification by inspectors/ auditors (without considering the interest
                   actually debited during the period)
                  Ability to capture the ratings given by different agencies and the interest rates applicable.
                   Also, ability to fix the rating model adopted for the purpose of interest application at
                   customer level/ account level.
                  Ability to fix overdue interest exemption limits like 5,000/- for all loans and Rs.25,000/-
                   for priority sector loans
                  Ability to give advance 'alert' at pre-defined period in case of loans sanctioned with 'reset'
                   clause of interest.
4.8.12   The following requirements are related to EMI calculation and application
                  Provision for EMI calculation on the limit sanctioned/ amount disbursed, based on
                   frequency and number of installments, loan amount, interest rate and age of the borrower.
                   There should be a provision to round-off the EMI upto certain tolerance limits
                  Ability to specify more than one EMI schedule for a loan (step-up or step-down by a
                   specified percentage or fixed amount)
                  Ability to define multiple repayment schedule, holiday/ gestation period at account level
                   with a facility to support bullet payment/ balloon payment and progressive installments
                  To recalculate EMI on the following conditions: Revision of rate, on capitalization of
                   interest/charges like liability insurance, Restructuring, Reschedulement / Rephasement
                  Ability to prevent modification of the EMI amount calculated by the system, beyond
                   certain specified tolerance limits
                  Ability of the system to validate the aggregated and modified fixed installment amounts
                   against the total loan amount, in case of modification of installments of non-EMI loans
                  Ability to automatically recompute the EMI in the event of modifications to interest
                   rates. Also, to generate a letter to the customer, notifying him/ her of the modified rate and
                   EMI.
4.8.13   The system should support the following features related to interest subvention
                  Ability to capture subvention parameters, amount upto which accounts are eligible for
                   subvention, Kharif and Rabi seasons (in terms of from and to dates), subvention applicable
                   up to dates separately for Kharif and Rabi, rate of interest chargeable to party and rate at
                   which claim is to be made on RBI, details of GL numbers and account types




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                                                                                                        February 2010




                   Ability to charge original applicable rate of interest after expiry of the subvention period
                    of the scheme or on due date of the loan, whichever is earlier
                   Ability to calculate and post interest periodically (at present quarterly) at subvented rates
                    on all eligible accounts and at usual rates on the remaining accounts
                   Ability of the account closing program to calculate interest at subvented rate on eligible
                    accounts
                   Ability to calculate claim on a quarterly basis/suggested intervals and submit to RBI as per
                    the proforma
                   Provision for recalculation and posting of interest (debit or credit) due to revision/ change
                    of interest rate with value date
                   Ability to permit modifications to default interest rates (parameterized for the specific
                    scheme) only on approval by manager/ appropriate authority (parameterisable).
                   All such accounts which are otherwise eligible and for which net interest rate falls below
                    the interest rate applicable for subvention should be reported in the ‗Claim report‘.
4.8.14   The system should have provision for re-schedulement/ rephasement of loans with or without
         overdues / interest (to be parameterized).

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

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

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

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

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

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




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                                                        RFP for implementation of CBS in RRBs sponsored by Andhra Bank
                                                                                                         February 2010




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

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

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

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

4.8.25   Facility to capture unrecovered interest and installment separately

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

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

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

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

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

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

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

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

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

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

4.8.36   Migration of correct penal interest date for ODCC accounts.




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                                                       RFP for implementation of CBS in RRBs sponsored by Andhra Bank
                                                                                                        February 2010




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

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

4.8.39   System should support transfer of accounts between SOLs.

4.8.40   System should support subsidy loans.

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

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

4.8.43   The system should be able to support liquidation loans under ―Compromise‖.

4.8.44   The system should be able to support ―Personal Accident Scheme‖

4.8.45   The system should be able to support ―Comprehensive Insurance Scheme‖.

4.8.46   The system should support ‗Rythu Mithra Groups‘,

4.8.47   The system should support ‗Joint Liability Groups‘,

4.8.48   The system should support Kisan Credit Cards.

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

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

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


4.9      Inland Bills.

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

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

4.9.3    The system must have provision to categorize Bills under various sub categories and process
         transactions accordingly. (e.g.: Clean Bills Purchased (CBP) /Instant Clean Bills Purchased (ICBP)



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                                                                                                           Andhra Bank
                                                        RFP for implementation of CBS in RRBs sponsored by Andhra Bank
                                                                                                         February 2010




         /Documentary Bills Purchased (DBP) / Documentary Usance Bills Discounted (DUBD) /Clean
         Usance Bills Discounted (CUBD /Supply Bills/ Foreign Clean Bills Purchased (FCBP) etc.

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

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

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

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

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

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

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

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

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

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

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




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

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

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

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

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

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

4.10     Bank Guarantees.

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

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

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

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

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

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

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




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

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

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

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

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

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

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

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

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

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

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



4.11      Branch Side Operations – Cash module.

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

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




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

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

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

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

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

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

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

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

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

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

4.12      Branch side operations - Clearing module.

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

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

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

4.12.4    The system should support levy of charges such as clearing charges like cheque returning, penalty
          charges for the receipt of instruments received after a predefined cut-off time, clearing returns,



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                                                                                                       February 2010




         advance release, speed clearing charges, ABB charges. System should also support the charging of
         service tax as per prescribed norms from time to time. They may be made to go through the
         parameter table for easy handling in future.

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

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

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

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

4.13     Branch side operations – Remittances module

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

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

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

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

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

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

4.14     General Requirements

         Access Control Requirements:

4.14.1   The system should provide the following facilities regarding access control

4.14.2   Support Maker Checker Facility (multiple levels) based on category of staff, Product type, Account
         type, Transaction Type/amount, Effect of transaction (like a/c becoming TOD etc), Status of the



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                                                                                                         February 2010




          Account (inoperative, dormant a/c). Ability to enforce appropriate authorization using maker checker
          concept for setting up User level / ID / account level passing limits

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

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

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

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

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

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

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

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

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

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

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




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                                                                                                         February 2010




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

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

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

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

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

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

4.14.20   Ability to maintain a serial for each Mandatory log

          Application Requirements

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

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

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

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

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

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




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                                                                                                          February 2010




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

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

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

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

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

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

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

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

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

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

          Exceptional Transactions Maintenance

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

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

4.14.39   Ability to generate exception reports for a given period for a given account and given type of
          transaction relating to the selected period and ability to generate exception reports on a daily basis as




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          part of the day -end activity and print / display exception reports for any defined date or range of
          dates, sanctioning authority -wise.

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

          Product Accounting

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

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

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

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

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

4.15      Nominal Heads

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

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

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

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

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




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

4.16     Head Office Accounts

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

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

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

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

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

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

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

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

4.17     Audit Requirements

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

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




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                                                        RFP for implementation of CBS in RRBs sponsored by Andhra Bank
                                                                                                         February 2010




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

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

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

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

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

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

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

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

4.18      Service Tax

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

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

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

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

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




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                                                                                                         February 2010




4.19     Management Information Systems

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

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



4.20     Application Software Features

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

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

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

4.21     Functional requirements

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

         Features and Modules Required

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

4.21.3   Software should provide for on-site and off-site Audits and Branch inspections: Bank envisages
         shifting of majority of audit functions from on-site inspections / audits to off-site inspections / audits
         / surveillance and various small special audits. The software should have necessary support and
         provision for various audit tools. The tools must be provided for auditing application software,
         network, operating systems and database systems. The solution must also facilitate generation of
         alerts to the auditors about exceptional transactions defined for the purpose of monitoring




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         discrepancies/ deviations, if any, instantaneously. The solution must be able to provide necessary
         results required in accordance with the Risk Based Internal Audit (RBIA) adopted by Bank as per the
         guidelines of RBI.

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

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

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

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

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

4.21.9   The solution must provide extensive data extraction facility by supporting generation of statutory,
         standard and dynamic reports for Executive information and decision-making. It must also provide




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          for analyzing the data for enabling Bank to monitor/evaluate performance of Bank in all parameters
          of business - product wise, segment wise, zone wise etc.

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

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

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

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

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

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

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

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

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

          Application Audit

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




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5       Hardware requirements.

5.1     Hardware & Operating System requirement

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

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

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

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

5.2     Supply of Hardware

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

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

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

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

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

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




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

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

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

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

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

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

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

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

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

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

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




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

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

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

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

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

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

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

5.3      Backup – Recovery – Replication Requirements

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

5.3.2    Designing a backup and recovery solution

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

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

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

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

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




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5.3.8    The ―Recovery Point Objective‖ should not exceed 30 minutes and ―Recovery Time Objective‖
         should not exceed 8 hours.

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

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

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

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

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

5.4      Acceptance of Hardware

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

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

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

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

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

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



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

5.5     Additional Information

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

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



5.6     Core Banking Solutions – Hardware Sizing

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


        Table 5-1 RRB CBS Server sizing parameters

        Parameter                Sizing Information

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

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

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

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

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

                                     All modules proposed by the Bidder should be seamlessly integrated either



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                                                                                                                           February 2010




        Parameter                 Sizing Information
                                       at the Application Layer or at Database Layer.

        Scalability                   CBS application and hardware should at a minimum

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

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

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

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

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

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

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

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



5.6.2   Additional Inputs for Solution Sizing are furnished hereunder.


        Table 5-2 RRB CBS – Additional inputs for Solution Sizing

         Parameter                                                  Sizing Input

         Estimated growth of Users                                  10% per annum

         Estimated growth of Accounts                               10% per annum

         Estimated growth in Transactions                           10% per annum




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Parameter                             Sizing Input

Additional functionality increase     30%
expected due to business,
regulatory and statutory
requirements

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

Peak time window                      2 hours

Transactions that shall be carried    70%
out in a three hours window

Concurrent users transacting at any   @80% of total users (please refer number of users in core
given point of time                   banking server sizing requirements)

Number of branches proposed to        92 units by 25.09.10
be connected and scheduled date
                                      184 units by 31.12.10

Estimated number of new branches      10 new branches per year starting 31.12.2009
which are to be connected to CBS
after ------

Automated Teller Machines as on       None
date

End of Day completion                 Branch side :With in 15 minutes after the last
rrequirement (After all the           transaction is posted in the branch
proposed branches are centralized)
                                      DC side :

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

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

Data Storage (Data to be migrated     100 GB
from the existing system including
historical data for 2 years)

Routine Operations like retrieval     4 Seconds
of Signatures, Photos, Images etc



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         Parameter                                                   Sizing Input

         Estimated requirement of Storage                                  As per the Database requirements of the application
         at DC and DR for a five year                                       duly taking regulatory and statutory requirements into
         period                                                             consideration.

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

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

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

                                                                     Branch: 95%

                                                                     ATM: 5%

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

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

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

         Estimated percentage of non-                                     40%
         financial transactions such as
         balance enquiry



5.6.3   Existing business information of proposed CBS branches

        Table 5-3 Information on existing business for solution sizing.


        Description of Item                                                                                        Quantity




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        No. of Accounts                                                                                            1291440

        Financial Transactions Per Day                                                                              29648

        Non-Financial Transactions Per Day                                                                          11860

        Total Number of Users                                                                                        600



5.6.4   Projections for proposed CBS branches for next Five years

        Table 5-4Business projections for 5 year period for solution sizing.

        Description                     Dec-               March-               March-          March-         March-        March-
                                        2009                2011                 2012            2013           2014          2015

        Branches                         184                   196                 206             216            226           236

        Users                            600                   612                 673             740            814           900

        Accounts                        12.9                  14.5                 16              17.5          19.5            21
        (figures            in
        Lakhs)

        Fin.     TPD                     0.3                  0.34                0.37             0.41          0.45          0.50
        (figures   in
        Lakhs)

        Non-Fin                         0.12                 0.135               0.147             0.16          0.18          0.20
        TPD(figures
        in Lakhs)



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

        Additional Information for Bidder on Hardware Sizing

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

5.6.7   Redundancies must be built into the solution for ensuring optimal performance while taking into
        account, the present as well estimated number of future users and the load estimated on the system.



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         The backup and disaster recovery plans need to be highlighted and the bandwidth requirements from
         the branches to DC / DR needs to be spelt out.

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

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

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

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

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

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

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

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

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

5.6.14   The proposed hardware should perform in a redundant mode to provide 24x7 services to the clients
         and to support other delivery channels including ATMs, Any Branch Banking (ABB) etc. This is




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         also applicable for branches which work in extended hours like 8 am to 8 pm branches, besides
         normal working hours for other branches.

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

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

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

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




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6        Implementation and maintenance services.

6.1      Software implementation.

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

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

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

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

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

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

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

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

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

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

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



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

6.2     Hardware implementation.

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

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

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

6.3     Handholding support at branches.

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

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

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

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

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

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

6.4     Resources for Helpdesk.

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

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



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

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

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

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

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

6.5     Resources for ongoing support.

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

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

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

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

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

6.6     Warranty and Annual Technical Support for Finacle and RDBMS.

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

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

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




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6.7     Warranty and Annual Maintenance Contract for Hardware.

6.7.1   The vendor shall provide Hardware with 3 years warranty.

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

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




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7        List of Indicative Deliverables

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

7.2      Deliverables for the Solution

         Finacle Universal Banking Solution:

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

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

7.2.3    Conducting Gap Analysis and Gap Analysis document.

7.2.4    Customisation scope document based on Gap Analysis document.

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

7.2.6    Business Process Definition process and BPD document.

7.2.7    User Acquaintance Test environment.

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

7.2.9    Pilot roll out plan document.

7.2.10   Document for branch client installation.

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

7.2.12   Finacle Product documents and Finacle implementation document.

7.2.13   Finacle installation and installation document.

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

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

7.2.16   SMS push alerts.



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7.2.17   Interface to Financial Inclusion project.

7.3      Systems Deliverables

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

7.3.2    The Bidder should provide adequately sized hardware for

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

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

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

              Staging Servers

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

7.3.3    The bidder should Size, Procure, install and configure

              Storage Solutions, with SAN Switch, necessary software

              Back up, Recovery and Replication, Backup server

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

              Submission of relevant document.

7.4      Training

7.4.1    The bidder should provide training to Bank personnel covering.

                   Core Technical Team

                   Operating Systems

7.5      Resources support:

7.5.1    The Resources support covers

         Data Center Management




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    Physical and Application Security Management

    Server Management

    Database Management

    Performance Monitoring and Tuning of the Core Banking Solution

    Ongoing Application Support Management

    Back up and Recovery Management

    Patch Management for Applications and OS

Disaster Recovery Center Management

    Physical and Application Security Management

    Server Management

    Database Management

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

    Back Up, Recovery and Replication Management

    Incident Management and Response Management

    User Management

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

    All Application Software should be supplied with 1 year warranty




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8        Technical Bid – Organisation and formats.

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

8.2      Documents required as part of bidder’s profile:

8.2.1    Bidder‘s covering letter for the proposal

8.2.2    Authorisation for Signatory.

8.2.3    Bidder Profile (format provided in annexure)

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

8.2.5    Compliance Certificate.

8.2.6    Certificate confirming contents of soft copy.

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

8.2.8    Credentials

8.2.9    Team Strength

8.2.10   Statement of Deviations in Terms and Conditions.

8.3      Documents required as part of Technical Proposal.

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

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

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

8.3.4    Hardware sizing document.

8.3.5    Solution architecture logical design and physical architecture

8.3.6    Document on infrastructure requirements indicating power, PAC requirements

8.3.7    Document on Network and Security requirements




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

8.3.9    Hardware product literature for each system.

8.3.10   Customisation strategy document.

8.3.11   Project Plan with timelines for implementation.

8.3.12   Masked Commercial Bid.

8.4      Cost of Bid documents

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

8.5      Earnest Money Deposit.

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




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9       Commercial Bid - Format for Bill of Materials

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


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


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


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


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


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


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




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9.2     Application Software


        Table 9-1 AB RRB CBS Commercial Bid Format for Application Software
        Sl. No.      Particulars                                       Price per Branch                   Total Price for 200 branches
                                                                       Base Price       Tax               Base Price      Tax
                                                                                        components                        components

                     Finacle Core Banking Solution
        1            meeting       all    business
                     requirements of RRBs


        Optional
        2        Finacle eBanking


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


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


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


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


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


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




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                                                                                                                           February 2010




9.3     Application Software Customization and implementation.


        Table 9-2 AB RRB CBS Commercial Bid Format for Application Software customisation and implementa tion.
                                                                                                                 Consolidated charges
        Sl. No            Particulars
                                                                                                         Base Price          Tax Component
                          Finacle Customisation to be built to meet functional
                          specifications envisaged in RFP – including ATM
        1
                          interface, NEFT through Andhra Bank etc.

                          Finacle implementation for two RRBs – separate
                          instances, test and training environments and both
        2
                          at DC and DRC.

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




        …
                          Additional customisation --- man days
                          Total Customization Charges

        Note:



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


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


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


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


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




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9.4   Hand holding support at Branches.


      Table 9-3 AB RRB CBS Commercial Bid Format for Handholding support
                                                                                                                Consolidated charges
      Sl. No           Particulars
                                                                                                     Base Price             Tax Component
                       Hand Holding support for 25 branches for each of
                       the RRBs (i.e. for 50 branches in all spread over
      1
                       three districts of Andhra Pradesh and two districts
                       of Orissa)




      Optional costs for additional branches



      Table 9-4 AB RRB CBS Commercial Bid Format for Handholding support (Optional costs beyond 50 branches)
                       Hand holding support per branch charge at the rate
                       of one person week per branch.




9.5   Training.
      Table 9-5 AB RRB CBS Commercial Bid Format for Training.

                                                                                 Training
                                                                        No    of
                                                 No9.5.1.1of No      of          charges    /
      Category                                                          days of               Total
                                                 persons     Batches             per person /
                                                                        Training
                                                                                 per day

                                                 (a)                (b)                  (c)              (d)              AxCxD

      Finacle Core                   Team 25                        1                    20
      Training

      Operating System                           10                 1                    10

      Total Training Cost




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9.6   Hardware Requirements

      Hardware for installation at Data Centre, Hyderabad
      Table 9-6 AB RRB CBS Commercial Bid Format for Hardware for DC

           Sl. No.          Make and                 No. of                     Unit Rate                         Total
                             Model                   Units

                                                                       Base Price     Tax       Base Price             Tax
                                                                                      Component                        Component

           CBS – Web Servers



           CBS – Application Servers



           CBS – Database Servers



           CBS – Staging Servers



           CBS – Test / Training Servers




           CBS – Storage solution




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




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

        Table 9-7 AB RRB CBS Commercial Bid Format for Hardware for DRC

             CBS – Web Servers



             CBS – Application Servers



             CBS – Database Servers



             CBS – Storage solution




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




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



9.7     Operating Systems:


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




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9.8   Relational Database Management Systems

           Data Centre
      Table 9-8 AB RRB CBS Commercial Bid Format for RDBMS for DC

           Sl. No.          Make and                No. of                    Unit Rate                         Total
                             Model                  Units

                                                                     Base Price     Tax       Base Price             Tax
                                                                                    Component                        Component

           Finacle production system

           1            Oracle licenses
                        required     as
                        required

           2            Oracle license
                        for Test system

                        TOTAL



           Disaster Recovery Centre
      Table 9-9 AB RRB CBS Commercial Bid Format for RDBMS for DRC

           Sl. No.          Make and                No. of                    Unit Rate                         Total
                             Model                  Units

                                                                     Base Price     Tax       Base Price             Tax
                                                                                    Component                        Component

           Finacle production system

           1            Oracle licenses
                        as required




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9.9     Work stations and other requirements at Data Center / DRC.
        Table 9-10 AB RRB CBS Commercial Bid Format for Workstations (DC)

                                                    Make /         No. of
        Sl. No      Branch Hardware                                             Unit rate                 Total
                                                    Model          Units
      7.1.1                                                                     Base          Tax         Base            Tax

      7.1.2         Client PCs - 10 DC                             10
         1
                    nos.
                    Printer for printing                           1
                    Term         Deposits
        2           certificates 24 Pin
                    80 column / 300
                    CPS - 1 no.
                    Printer for Printing                           1
                    Demand Drafts /
                    Pay           Orders
        3
                    (Banker‘s cheques)
                    - 9 Pin 80 column /
                    300 CPS - 1 no
                    132 column 300                                 1
                    CPS – 9 Pin Dot
        4
                    Matrix Printer - 2
                    nos.
                    Suitable scanner for                           1
                    signature scanning
        7
                    (flatbed)
                    - 1 no.
        8           LaserJet Printer                               1
                    Total


        Table 9-11 AB RRB CBS Commercial Bid Format for Workstations (DRC)

                                                    Make /         No. of
        Sl. No      Branch Hardware                                             Unit rate                 Total
                                                    Model          Units
      7.1.3                                                                     Base          Tax         Base            Tax
      7.1.4
         1          Client PCs - 5 nos.                            5

        2           LaserJet Printer                               1
                    Total




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9.10   Annual Technical Support and Annual Maintenance Contract.


       Annual Technical Support Charges – Application Software.

       Table 9-12 AB RRB CBS Commercial Bid Format for Annual Technical Support Charges – Application Software.
                   Name      Of     The
                   Application Software
       Sl No                            Annual Technical Support Charges
                   /   Module      With
                   Details
                                        Year    No. of ATS                  ATS charges
                                        No.     Units      rate
                                                           (%)
                                                                    Base         Tax Component
                                                                    component
       1           Finacle CBS

       Table 9-13 AB RRB CBS Commercial Bid Format for Annual Technical Support Charges – Oracle RDBMS etc.(DC)
                   Name       Of      The
                   Application Software
       Sl No                              Annual Technical Support Charges
                   /   Module        With
                   Details
                                          Year    No. of ATS                  ATS charges
                                          No.     Units      rate
                                                             (%)
                                                                      Base         Tax Component
                                                                      component
       1           Oracle RDBMS – DC
       2           Oracle for Test system
                   Total


       Table 9-14 AB RRB CBS Commercial Bid Format for Annual Technical Support Charges – Oracle RDBMS etc. (DRC)
                   Name      Of     The
                   Application Software
       Sl No                            Annual Technical Support Charges
                   /   Module      With
                   Details
                                        Year    No. of ATS                  ATS charges
                                        No.     Units      rate
                                                           (%)
                                                                    Base         Tax Component
                                                                    component
       1           Oracle RDBMS – DR




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Annual Maintenance Contract Charges – Hardware (DC)

Table 9-15 AB RRB CBS Commercial Bid Format for Annual Maintenance Contract Charge – DC Hardware.
Sl No       Description of system Annual Technical Support Charges
                                  Year    No. of AMC                  AMC charges
                                  No.     Units      rate
                                                     (%)
                                                              Base         Tax Component
                                                              component
1
2




Annual Maintenance Contract Charges – Hardware (DRC)
Table 9-16 AB RRB CBS Commercial Bid Format for Annual Maintenance Contract Charges – DRC Hardware
Sl No       Description of system Annual Technical Support Charges
                                  Year    No. of AMC                  AMC charges
                                  No.     Units      rate
                                                     (%)
                                                              Base         Tax Component
                                                              component
1
2




Table 9-17 AB RRB CBS Commercial Bid Format for Annual Maintenance Contract Charge - DC Workstations
Sl No       Description of system Annual Technical Support Charges
                                  Year    No. of AMC                  AMC charges
                                  No.     Units      rate
                                                     (%)
                                                              Base         Tax Component
                                                              component
1
2




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                                                                                                                         February 2010




         Annual Maintenance Contract Charges – Hardware (DRC)
         Table 9-18 AB RRB CBS Commercial Bid Format for Annual Maintenance Contract Charges (DRC)
         Sl No       Description of system Annual Technical Support Charges
                                           Year    No. of AMC                  AMC charges
                                           No.     Units      rate
                                                              (%)
                                                                       Base         Tax Component
                                                                       component
         1
         2




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


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


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




9.11     Resources for ongoing support.


         Table 9-19 AB RRB CBS Commercial Bid Format for Manpower resources provisioning (DC)
         Sl.        Description                 of
                                                      Charges for Resource provisioning for ongoing support
         No         system
                                                      Year          No.    of Man                             Total costs
                                                      No.           Resources month                  Base           Tax Component
                                                                              rate                   component
         1          Resources at DC for
                    Hardware
                    maintenance
                    including Storage and
                    Backup
         2          Oracle DBS at DC
         3          Application Support
                    L2 at DC
                    Total




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Table 9-20 AB RRB CBS Commercial Bid Format for Manpower resources provisioning (DRC)
Sl.        Description                of
                                             Annual Technical Support Charges
No         system
                                             Year         No.    of Man                             Total cost
                                             No.          Resources month               Base             Tax Component
                                                                    rate                component
1          Resources at DRC for
           Hardware
           maintenance
           including Storage and
           Backup
2          Oracle DBA at DRC
           Total



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




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9.12   Summary of Cost and Total Costs
       Table 9-21 AB RRB CBS Commercial Bid Format - Consolidation
       S.                     Particulars                                                 Cost
       No.

                                                              Base              Tax Component           Total
                                                              component

          1       Finacle         Application
                  Software Cost (Total of
                  Items
         2.       Application       Software
                  Customization          and
                  implementation Charges
          3       Handholding support at
                  branches

          4       Training


          5       Hardware


          6       Operating Systems


          7       RDBMS


          8       Recurring Costs –ATS for
                  Finacle

          9       Recurring Costs –ATS for
                  RDBMS

         10       Recurring Costs – AMC for
                  Hardware

         11       Recurring Costs – AMC for
                  Workstations

         12       Resources          for      Ongoing
                  support




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         Disaster Recovery Centre
  1      Hardware

  2      Operating Systems

  3      RDBMS

  4      Recurring Costs –ATS for
         RDBMS

  5      Recurring Costs – AMC for
         DRC Hardware

  6      Recurring Costs – AMC for
         DRC Workstations

  7      Recurring Costs – AMC and
         ATS

  8      Resources     for     Ongoing
         support

                  TOTAL

              Amount in words

Note:We Confirm that

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

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

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

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

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

                                          Authorized Signatory with Seal

Date:

Place:




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10       Payment Terms.

10.1     Payment Schedule


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

         Table 10-1 AB RRB CBS– Payment Terms.

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

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

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

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

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

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

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

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




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10.2      Project Implementation Costs.


 10.2.1   The following payment schedule would be followed for providing Training and one time
          implementation services.
          Table 10-2 AB RRB CBS– Payment Terms – Project Implementation Costs.

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

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

          Customization                         50% of                           15 days after first pilot branch roll out and
                                                Customisation                    acceptance by Bank.
                                                charges

                                                25% of                           After successful completion of roll out in 50% of
                                                Customisation                    branches subject to sign off by both parties
                                                charges                          agreeing completion of Customisation.

                                                25% of                           One month after successful completion roll out in
                                                Customisation and                25 pilot branches and acceptance by Bank.
                                                implementation
                                                charges

          Implementation                        35% of                           15 days after first pilot branch roll out and
                                                implementation                   acceptance by Bank.
                                                charges

                                                35% of                           After successful completion of roll out in 50% of
                                                Customisation                    branches
                                                charges

                                                30% of                           After successful completion of roll out in 100% of
                                                implementation                   branches
                                                charges
          Data uploading services               To be assessed on monthly basis and shall be paid monthly in arrears
                                                subject to completion of the respective task and acceptance by Bank.

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




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10.3   Project Life cycle Costs

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

       Table 10-3 AB RRB CBS– Payment Terms – Project Life Cycle Costs

       Services                              Coverage                    Stages (On completion of activities)
       Annual Technical Support              Software, RDBMS
                                                                         1.   On signing the relative contract, quarterly in
                                                                              advance against a financial guarantee for 25%
                                                                              of ATS / AMC Charges or the amount shall be
       Annual            Maintenance         Hardware              and        payable in arrears quarterly (within 30 days
       Contract                              Operating         System,        from the end of relevant quarter or on
                                             Tools                            submission of claim whichever is later).

                                                                         2.   Financial Guarantee for the entire year may be
                                                                              submitted to draw quarterly payments
       Resources       for     ongoing       All other charges and       The amount shall be paid in arrears quarterly
       support                               recurring Costs             within 30 days from the end of relevant quarter or
                                                                         on submission of claim whichever is later




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10.4     Procedure for Claiming Payments


10.4.1   The following process should be followed for claiming payments:


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


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


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


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


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


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




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11       Eligibility Criteria

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

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

11.2     Eligibility of Bidders

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

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

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

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

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

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


11.3     Experience of the Bidder in implementing Core Banking Solutions

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

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




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

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

11.3.5   The Bidder should furnish reference Banking Client




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12       Evaluation Process

12.1     Objective of Evaluation Process

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

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

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

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

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

12.2     Technical Bid Evaluation Process

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

                   Functional requirements

                   Technical and Solution requirements

                   Structured walk through

                   Past Experience

                   Vendor Presentation & Approach and Methodology

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




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

12.3     Scoring Methodology for Functional Requirements

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

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

         Table 12-1 AB RRB CBS – Functional specifications mapping document for Technical Bid evaluation

         Point No.         Detail from            Mapping with Finacle             % readily               Customisation   % met
                           RFP                    document – Meeting               met through             requirements    through
                                                  the requirement                  product                                 customisation /
                                                                                   configuration                           work around

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



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

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

12.3.5   The evaluation will be done based on desktop evaluation.



12.4     Scoring Methodology for Technical and Solution Requirements

12.4.1   The Technical requirements cover the Hardware proposed as part of the solution.

12.4.2   The solution requirements cover the General Solution Architecture of the CBS that is to be
         provided as a part of the solution.

12.4.3   Bidder should clearly specify the detailed configuration and specifications of the hardware
         required at various levels of performance and supply a detailed Bill of Materials (BoM) with the
         part numbers for the hardware based on the technical requirements.

12.4.4   The Bidder should clearly specify the detailed solution architecture.

12.4.5   The hardware should be scalable to support the numbers specified as a part of the Master
         document.




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12.4.6    The Scoring for Technical and Solution requirements would be based on the response provided
          by the Bidder

12.4.7    The Sizing Booklet that is provided as a part of the response as described in Section ------ would
          also be considered for evaluation. The Bidder should cover the following as a part of the Sizing
          Booklet.

12.4.8    The Bidder‘s interpretation of the Bank‘s requirements and translating them as parameters for
          sizing the system will be rated based on the hardware sizing documentation.

12.4.9    The scores will also be dependent on the explanation given on how conclusions are made about
          the response time, performance of systems in terms of TPS, concurrent sessions, concurrent
          users etc.

12.4.10   The scores will also take into consideration the supporting documents, performance estimation
          reports on equivalent hardware and similar environment.

12.4.11   The hardware sizing documentation should be exhaustive with details application-wise,
          system-wise, providing for the entire range of hardware required, substantiated with the product
          literature, performance estimation reports and duly relating with the information provided for
          hardware sizing.

12.4.12   The Bidder would be invited to the Bank to make an exclusive presentation detailing the Total
          Solution Sizing which would be evaluated by a competent Panel.

12.4.13   The Bank at its discretion may reject the proposal of the Bidder without giving any reason
          whatsoever, if in the Bank‘s opinion, the Solution Sizing was not made appropriately to meet
          the performance criteria as stipulated by the Bank


The Bidder should score a minimum of 80% in Technical and Solution Requirements.



12.5      Scoring Methodology for Structured Walkthrough

12.5.1    The Bidder is required to arrange for a Structured Walkthrough of the solution offered in
          response to RFP in a place where all the functionality can be demonstrated to the satisfaction of
          the Bank‘s team including Non-ATM delivery channels.

12.5.2    During the structured walkthrough, the Bank may seek explanations on various technical and
          other requirements.

12.5.3    The cost for set up for the structured walkthrough will be borne by the Bidder and the Bank will
          bear the expenses incidental to attending the Structured Walkthrough by the Bank‘s team and its
          consultants.




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12.5.4   Each question in the questionnaires prepared by Bank would be verified by the officials of the
         Bank and appropriately record the responses. Any workarounds suggested by the bidder for
         functionality may be considered by Bank personnel and details recorded.

12.5.5   Additionally the Bank team will verify the overall functionalities and technical architecture of
         the proposed solution and record the observations.

12.5.6   The responses provided by the Bidder in response to functional and technical requirements of
         RFP will also be verified and marked during the structured walkthrough process.

12.5.7   The Structured Walkthrough Questionnaires would be released to the Bidder‘s after preliminary
         scrutiny of the technical bids, post RFP submission. The dates would be indicated at the
         appropriate time.

12.5.8   The structured walkthrough questionnaires for each of the Bidders will be dependent on the
         solution proposed by them.

12.5.9   The Bank at its discretion may reject the proposal of the bidder without giving any reason
         whatsoever, if in the Bank‘s opinion, the bidder could not present or demonstrate the proposed
         solution as described in the proposal.


The bidder is expected to score a minimum of 80% score in Structured Walkthrough.



12.6     Scoring Methodology for Past experience

12.6.1   A Committee of people from the Bank would carry out Reference Site Visits and/or Telephonic
         interviews with the existing customers of the Bidder. The inputs that have been received from
         the Customer would be considered by the Bank and this might not need any documentary
         evidence. This rating would be purely on the inputs provided by the Bidders customers.

12.6.2   The scoring would be relative among the bidders.

12.6.3   The Bank at its discretion may reject the proposal of the Bidder without giving any reasons
         whatsoever, in case the responses received from the Site Visits are negative.

12.7     Scoring Methodology for Vendor Presentations

12.7.1   As an evaluation process, the Bidders will be invited to Bank to deliver a presentation on the
         Solution that is proposed.

12.7.2   The Bank will propose the structure for each of the Bidders based on the information required
         from the concerned Bidders.




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12.7.3     The presentations would be rated by a competent panel chosen appropriately by Bank and
           scores would be assigned to each of the presentation. The details of the presentations and the
           contents to be covered would be published and intimated by Bank prior to the presentations.

12.7.4     The ―Approach and Methodology‖ adopted for the Implementation would also be evaluated by
           the Bank duly supplemented through this presentation and would at the minimum cover

                    Data Migration

                    Training

                    Team Strength

                    Project Management for CBS roll out.

Data Migration

12.7.5     The quality of the Bidder‘s Data Migration procedure shall form an integral part of the final
           evaluation and selection of the Bidder.

12.7.6     The bidder has to furnish a detailed write up on Data migration methodology and their
           understanding of the work in scope.

Training

12.7.7     The bidder has to furnish a document detailing the trainings that are envisaged in the scope of
           the document besides Finacle Core Team Training which is to be undertaken by M/s Infosys.
           The other trainings to include training on Hardware, Help desk etc.

Team Strength

12.7.8     The Bidder has to furnish a document detailing Team Strength for CBS projects together with
           profiles of team members experienced in CBS roll out and their availability to Bank‘s project.

12.7.9     The Bidder should ensure that the people above the role of the Team Lead who are proposed for
           this project should have worked on projects in Indian Banks earlier.

Project Management

12.7.10    It is also expected that the Bidder gives an elaborate Project Management template covering
           each of the activities and the implementation schedule as per the ―Pilot Implementation‖ details
           provided in this document.

12.7.11    The Bidder should provide explanation on the Project Management process that is proposed for
           the Bank including details of how the same was applied in a similar project




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12.8     Consolidated Score in Technical Bid Evaluation

12.8.1   The Consolidated Technical Bid Evaluation Score (TEVS) would be a composite of the
         following scores:

         Table 12-2 AB RRB CBS – TEVS Weightage Distribution

                 Scoring Parameter                              Weighted Score                Minimum Percentage for
                                                                                              Technical Qualification

         Functional Requirements (FR)                    WTFR = (Bidder Score in FR          65% Overall
                                                         /FR)*25

         Technical and Solution                          WTTSR = (Bidder Score in            80%
         Requirements (TSR)                              TSR /TSR)*20

         Structured Walkthrough                          WTSW = (Bidder Score in SW          80%
         Scoring (SW)                                    /SW)*30

         Past Experience (PE)                            WTPE = (Bidder Score in PE          NA
                                                         /PE)*10

         Vendor Presentations (VP)                       WTVP = (Bidder Score in VP          NA
                                                         /VP)*15

         Total                                           TEVS = 100                          70%

12.8.2   FR, TSR, SW, PE, VP and AM denote the maximum score possible for each of the
         corresponding sections

12.8.3   The final Technical Evaluation Score shall be calculated as following:

         TEVS = WTFR + WTTSR + WTSW + WTPE + WTVP



12.9     Disqualification Parameters in Technical Bid Evaluation

12.9.1   As indicated in 12.2.2 , a minimum percentage has been defined for technical qualification for
         certain parameters. Bidders whose solutions do not meet the minimum percentages required in
         those parameters would not be considered for further evaluation.

12.9.2   The Bids which do not meet the stipulated criteria on 70% TEVS will not be considered for
         commercial evaluation




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12.9.3    The Bank at its discretion may reject the proposal of the Bidder without giving any reason
          whatsoever, if in the Bank‘s opinion, the Solution Sizing was not made appropriately to meet
          the performance criteria as stipulated by the Bank

12.9.4    The Bank at its discretion may reject the proposal of the Bidder without giving any reasons
          whatsoever, in case the responses received from the Site Visits are negative.

12.10     Commercial Bid Evaluation

12.10.1   The Bids which are Technically qualified would be considered for Commercial Bid evaluation.

12.10.2   The Total Cost for a period of 5 years for each of the Bidders will be arrived at based on the
          Commercial Bid format

12.10.3   The Bank shall scrutinize the commercial bids and normalize the same if found necessary before
          comparing the bids

12.10.4   The Commercial Bid will be evaluated based on the Cost that has been proposed by the Bidder
          in the Commercial Bid.

12.10.5   The Technically Qualified bidder with the lowest Commercial Bid after scrutiny and
          normalization would be declared as L1.

12.10.6   In case of a Tie between two or more Bidders for considering L1, the Bid with higher TEVS
          would be chosen at the discretion of the Bank

12.10.7   The L1 bidder shall not automatically qualify for becoming selected Bidder and for award of
          contract by the bank.

12.10.8   The Bank shall negotiate with L1 Bidder and in case the cost of L1 is found to be high and not
          acceptable to the Bank, the Bank reserves the right to reject the L1 Bidder and re-tender.

12.10.9   The Bank shall not incur any liability to the affected bidder on account of such rejection.

12.10.10 The Bidder whose commercial bid is accepted will be referred to as ―Selected Bidder‖ and the
         Bank will notify the name of the Selected Bidder




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13        Bid Submission

13.1      General Terms of Bid Submission

13.1.1    The offers should be made strictly as per the formats enclosed.

13.1.2    The Bidder should bear all the costs associated with the preparation and submission of their bid
          and Bank will in no case be responsible or liable for these costs, regardless of the conduct or
          outcome of the bidding process.

13.1.3    Two copies of the bid are to be submitted, one in original and the other in copy.

13.1.4    The bid should be signed by the Bidder or any person duly authorized to bind the bidder to the
          contract. The signatory should give a declaration and through authenticated documentary
          evidence establish that the person is empowered to sign the tender documents and bind the
          bidder. All pages of the tender documents except brochures if any are to be signed by the
          authorized signatory.

13.1.5    The offers submitted to Bank should preferably not bear any corrections, alterations, over
          writings and additions. In such cases, the person/s singing the bid should initial such
          corrections.

13.1.6    The Bidder is expected to examine all instructions, forms, terms and conditions and technical
          specifications in the Bidding Documents. Failure to furnish all information required by the
          Bidding Documents or submission of a bid not substantially responsive to the Bidding
          Documents in every respect will be at the Bidder‘s risk and may result in rejection of the bid.

13.1.7    No columns of the tender should be left blank. Offers with insufficient information and Offers
          which do not strictly comply with the stipulations given above, are liable for rejection.

13.1.8    Bank may accept or reject, in full or in part, any or all the offers, without assigning any reason
          whatsoever.

13.1.9    Bank may at its discretion abandon the process of the selection of IS Auditor anytime before
          notification of award.

13.1.10   The bids will be opened in the presence of authorized representatives of the bidders. However,
          the representative of the bidder has to produce an authorization letter from the bidder to
          represent them at the time of opening of Technical/Commercial bids. Only One representatives
          will be allowed to represent any bidder. In case the bidder‘s representative does not present at
          the time of opening of bids, the quotations/bids will still be opened at the scheduled time at the
          sole discretion of the Bank.

13.1.11   The bidder must use the entire information furnished in the RFP including scope, detailed
          requirements of audit of application and other terms and conditions, while submitting the
          response.



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13.1.12   All responses should be in English language. All responses by the Bidders to this RFP
          document shall be binding on such Bidders for a period of 180 days from the date of opening
          the Technical Bid.

13.1.13   All responses including commercial and technical bids would be deemed to be irrevocable
          offers / proposals from the Bidders and may, if accepted by Bank, form part of the final contact
          between Bank and Bidder.

13.1.14   Bidders are advised to attach a letter from an authorized signatory attesting the veracity of the
          information provided in the response.

13.1.15   Any technical or commercial bid submitted cannot be withdrawn / modified after the closing
          date and time for submission of the bid offers unless specifically permitted by Bank. However,
          the Bidder may modify or withdraw its offer after submission provided that, Bank, prior to the
          closing date and time receives a written notice of modification or withdrawal.

13.1.16   Bank concludes that everything as mentioned in the RFP documents circulated to the Bidders
          and responded by the Bidders have been quoted for by the Bidders and there shall be no extra
          cost associated with the same other than the cost quoted by the Bidder.

13.1.17   In the event, Bank has not asked for the quotes for alternative price.

13.2      Cost of Bid

13.2.1    The Bidder is required to submit a Demand Draft amounting to Rs.25,000 in favour of Andhra
          Bank along with the bid. This is to be submitted in a separate envelope along with the Bid
          response. This amount is not refundable.

13.3      Earnest Money Deposit (EMD).

13.3.1    The Bidder is required to deposit of sum of Rs.10,00,000/- (Rupees Ten Lakhs only) in the
          form of a Demand Draft / Banker‘s Cheque / Pay order in favour of ‗Andhra Bank‘ payable at
          Hyderabad as Earnest Money Deposit. The bidder may however submit a Bank Guarantee for
          180 days issued by a Scheduled Commercial Bank in lieu of EMD by way of Demand Draft /
          BC. Format of Bank Guarantee is provided.

13.3.2    The EMD is to be submitted as part of the Technical Proposal.

13.3.3    No interest will be paid on the EMD.

13.3.4    The EMD (bid Security) / Bank Guarantee of successful Bidder shall be refunded after
          furnishing performance Guarantee as required by the Bank.

13.3.5    EMDs / Bank Guarantees furnished by all unsuccessful Bidders will be returned on the
          expiration of the bid validity / finalization of successful Bidder, whichever is earlier.

13.3.6    The EMD made by the bidder will be forfeited if:



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13.3.6.1   the bidder withdraws his bid before opening of the bids.

13.3.6.2   the bidder withdraws his bid after opening of the bids but before acceptance of ―Letter of
           Intent‖ or ―Purchase Order‖.

13.3.6.3   the selected bidder withdraws his bid / proposal before furnishing an unconditional               and
           irrevocable Performance Bank Guarantee.

13.3.6.4   the bidder violates any of the provisions of the terms and conditions of the RFP in the process
           of evaluation and upto submission of Performance Bank Guarantee.

13.3.6.5   Failure to accept the order by the Selected Bidder within seven days from the date of receipt of
           the order makes the EMD liable for forfeiture at the discretion of Bank. However Bank reserves
           its right to consider at its sole discretion the late acceptance of the order by selected Bidder.

13.3.6.6   Failure to submit the Performance Guarantee with in stipulated period from the date of
           execution of the contract makes the EMD liable for forfeiture. In such instance, Bank at its
           discretion may cancel the order placed on the selected Bidder without giving any notice..

13.3.6.7   The Performance Bank Guarantee is to be furnished for a sum equivalent to 10% of the
           Contractual value covering the entire contractual period.

13.4       Two Stage Bidding Process

13.4.1     For the purpose of selection of the Vendor for implementing Core Banking Solution in the
           Regional Rural Banks sponsored by Andhra Bank, a two-stage bidding process will be
           followed.

13.4.2     The response to the present tender is to be submitted in two parts, i.e. the Technical Bid and the
           Commercial Bid. The bidders will have to submit the ‗Technical Bid‘ separately from the
           ‗Commercial Bid‘.

13.4.3     The bidder has to submit their response in hardcopy and softcopy in Microsoft Office document
           formats for Technical Bid and Commercial Bid.

13.4.4     The ‗Technical Bid‘ will contain the exhaustive and comprehensive details of approach,
           methodologies to be followed, assertions, documents and any other collateral the Bidder would
           want to submit to the Bank.

13.4.5     The ‗Commercial Bid‘ will contain the pricing information alone.

13.4.6     The Technical Bid should NOT contain any pricing or commercial information at all. Any bids
           violating this will be summarily rejected and the bids shall be disqualified from further
           evaluation.

13.4.7     In the first stage, only the ‗Technical Bids‘ will be opened and evaluated. Those bidders
           satisfying the technical requirements of the solution, as determined by Andhra Bank and as per



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          the requirements/specifications and the terms and conditions of this document, shall be short-
          listed.

13.4.8    Under the second stage, the Commercial Bids of bidders which have been short-listed earlier on
          the basis of evaluation of their Technical Bids, will only be opened.

13.4.9    Bank may call for any clarifications/ additional particulars required, if any, on the technical/
          commercial bids submitted. The vendor has to submit the clarifications/ additional particulars in
          writing within the specified date and time. The bidder‘s offer will be disqualified, if the
          clarifications/ additional particulars sought are not submitted within the specified date and time.

13.4.10   Bank reserves the right to call for a presentation on the features etc., from the short-listed
          bidders based on the technical bids submitted by them to make an evaluation.

13.4.11   The commercial bid should contain quotation for end-to-end CBS implementation services as
          envisaged in the Scope of the RFP.

13.4.12   Bidders must acquaint themselves fully with the conditions of the bids. No plea of insufficient
          information will be entertained at any time.

13.5      Sealing and Marking of Bids

13.5.1    The offer should be submitted in two separate sealed covers containing Technical (Technical
          Bid) and Commercial (Commercial Bid) Proposals super scribed with ―Selection of the Vendor
          for implementing Core Banking Solution in the Regional Rural Banks sponsored by Andhra
          Bank‖ and ―Selection of the Vendor for implementing Core Banking Solution in the Regional
          Rural Banks sponsored by Andhra Bank – Commercial Bid‖.

13.5.2    The sealed covers containing the Technical offer and the Commercial offer should in turn be put
          in a sealed outer envelope to be super-scribed as ―Technical and Commercial offers for
          providing Core Banking Solution for RRBs sponsored by Andhra Bank‖.

13.5.3    The envelope containing Technical Offer should include only Bidder‘s Profile (as per enclosed
          format), Relevant Technical Bid Forms and Standard Printed Technical Literature/Brochure in
          support of the Technical bid submissions.

13.5.4    The envelope containing Commercial Offer should include only the commercial quote for the
          Core Banking Solution implementation for RRBs as per the formats provided in relevant
          sections. Please note that no other information other than the price should be furnished along
          with this offer.

13.6      Commercial Bid

13.6.1    The commercial bid should be enclosed in a separate sealed envelope. Cost figures should be
          presented separately for each of the line items.




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13.6.2   The Bidder to quote in Indian Rupees only and bids in currencies other than INR would not be
         considered.

13.6.3   The prices and other terms offered by Bidders must be in force for a period of 180 days from the
         date of opening of the commercial bid.

13.6.4   All costs should be inclusive of all taxes, duties, charges and levies of State or Central
         Governments, as applicable, at the date of signing the Agreement and subject to deduction of all
         statutory deductions applicable, if any. The benefits realized by Bidder due to lower rates of
         taxes, duties, charges and levies shall be passed on by Bidder to Bank.

13.6.5   Any additional expenses incurred by the Bidder due to increase in taxation, duties, charges and
         levies, the same shall be reimbursed to the Bidder on production of satisfactory proof.

13.6.6   The Bidder has to include all costs like Travel, Lodging & Boarding, Local Travel expenses, etc
         incurred during the entire period of the Project and Bank will not bear any additional costs on
         these.

13.6.7   The prices quoted by the Bidders shall include all costs such as Taxes, Service Taxes, VAT,
         Levies, Cess, Insurance, etc. that need to be incurred.

13.6.8   Terms of payment shall be finalized with the selected bidder and milestone based payments
         shall be made to the selected bidder, on completion of such milestones to the satisfaction of the
         Bank.

13.7     Bid Submission

13.7.1   Bidders are not permitted to submit more than one bid.

13.7.2   The cost of bidding and submission of the bids is entirely the responsibility of the Bidders,
         regardless of the conduct or outcome of the tendering process.

13.7.3   Bids sealed in accordance with the Instructions to bidders should be delivered as mentioned in
         the Bid schedule. Bids may be sent by registered post or hand delivery, so as to be received at
         the address given above in the tender schedule.

13.7.4   Receipt of the bids shall be closed as mentioned in bid schedule. Bids received after the
         scheduled time will not be accepted by the Bank under any circumstances.

13.7.5   The technical bids will be opened as mentioned in bid schedule.

13.7.6   Bank will not be responsible for any delay due to postal service or any other means.

13.7.7   The bidders or their authorized representatives shall be present at the time of the opening of the
         technical bid. Only one person per bidder will be allowed to be present at the time of the
         opening the technical bids. No bid shall be rejected at bid opening, except for late bids and those
         that do not conform to bidding terms.



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13.8      Clarifications on the Tender Documents

13.8.1    Written requests for clarification may be submitted to the Bank before the date stipulated for
          receipt of such queries.

13.8.2    Form should preferably be emailed to the Bank or provided by softcopy – in either event
          hardcopy confirmations are to be submitted with the Bid documents.

13.8.3    The queries and clarifications wherever necessary shall be placed in Bank‘s web-site under
          Tenders column.

13.9      Amendments to Tender Documents

13.9.1    Amendments to the Tender Document may be issued by the Bank for any reason, whether at its
          own initiative or in response to a clarification requested by a prospective bidder, prior to the
          deadline for the submission of bids.

13.9.2    The amendments will be posted on Bank‘s web site and will be binding on all the bidders.

13.9.3    From the date of issue, amendments to Terms and Conditions shall be deemed to form an
          integral part of the RFP.

13.9.4    Further, in order to provide, prospective Bidders, reasonable time to take the amendment into
          account in preparing their bid, the Bank may, at its discretion extend the deadline for
          submission of bids.

13.10     Correction of Errors

13.10.1   Arithmetic errors in the Bids submitted shall be treated as follows:

          Where there is a discrepancy between the amounts in figures and in words, the amount in words
            shall govern; and

          Where there is a discrepancy between the unit rate and the line item total resulting from
            multiplying the unit rate by the quantity, the unit rate will govern unless, in the opinion of
            the Bank, there is obviously a gross error such as a misplacement of a decimal point, in
            which case the line item total will govern.

          Where there is a discrepancy between the amount mentioned in the bid and the line item total
            present in the Commercial Bid, the amount obtained on totaling the line items in the
            Commercial Bid will govern.

          The amount stated in the tender form, adjusted in accordance with the above procedure, shall be
             considered as binding, unless it causes the overall tender price to rise, in which case the bid
             price shall govern.




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13.11     Confidentiality

13.11.1   Bidder agrees that all information gathered from the Bank including oral enquires, letters,
          documents, emails, presentations, interactions, technical documentation, discussions with
          Bank‘s service providers and documents gathered from Bank‘s service providers etc. related to
          the Bank‘s business and other information identified as confidential by the Andhra Bank are
          confidential information of Bank.

13.11.2   Unauthorized disclosure of any such confidential information will amount to breach of
          contractual terms and in such cases Bank may pre-maturely terminate the contract and initiate
          any legal action as deemed fit.

13.12     Indemnification

13.12.1   The Bidder shall, at their own cost and expenses, defend and indemnify the Bank against all
          third-party claims including those of the infringement of Intellectual Property Rights, including
          patent, trademark, copyright, trade secret or industrial design rights, arising from use of the
          Products or any part thereof in India.

13.12.2   The Bidder shall expeditiously meet any such claims and shall have full rights to defend itself
          there from. If the Bank is required to pay compensation to a third party resulting from such
          infringement, the Bidder shall be fully responsible therefore, including all expenses and court
          and legal fees.

13.12.3   The Bidder shall also be liable to indemnify the Bank, at its own cost and expenses, against all
          losses/damages, which the Bank may suffer on account of violation by the Bidder of any or all
          national/international trade laws, norms, standards, procedures etc.

13.13     Notification of Award

13.13.1   The acceptance of a bid will be communicated in writing at the address supplied by the Bidder
          in the bid response. Any change of address of the Bidder, should therefore be promptly notified
          to the Assistant General Manager, Department of Information Technology, Andhra Bank, 3rd
          Floor, D-Block, Cyber Gateway, Hitec City, Hyderabad.

13.14     Signing of Contract

13.14.1   The Bidder shall be required to enter into a contract with Andhra Bank, within 15 days of the
          award of the tender or within such extended period, at the discretion of the Bank.

13.15     Jurisdiction

13.15.1   All disputes and differences of any kind, whatsoever, arising out of the audit propositions shall
          be referred by either party (the Bank or the Bidder), after issuance of 30 days notice in writing
          to the other, clearly mentioning the nature of the dispute / differences, to a single arbitrator,
          acceptable to both the parties, for initiation of arbitration proceedings and settlement of the



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          dispute/s and difference/ strictly under the terms and conditions of this contract, executed
          between the Bank and the Bidder. The arbitration shall be governed by the provisions of the
          applicable Indian Laws. The award shall be final and binding on both the parties. The venue for
          arbitration shall be at Hyderabad, India.

13.16     Other Terms and Conditions

13.16.1   This RFP document is the property of the Bank and this can not be copied or used in any other
          manner except for the purpose of responding to this tender notice or without written permission
          from the Bank.

13.16.2   All the documents submitted along with bids shall also become the property of the Bank and
          retained by the Bank unless otherwise specifically mentioned.

13.16.3   The bidder should mention whether he is having any contractual obligation presently with the
          Bank, its status and any conflict of interest has arisen in such contractual obligation.

13.16.4   The implementation methodology and business processes in the implementation of the Project
          will form the property of the Bank except for those for which Intellectual Property Rights are
          already established.

13.16.5   Selected bidder has to undertake not to hire, solicit, or accept solicitation for their employees
          directly involved in this contract during the period of the contract and one year thereafter,
          except as the parties may agree on a case by case basis.

13.16.6   Besides penal provisions, Bank reserves the right to terminate the contract, if the work is not
          progressing according to the agreed project plans and when the delay is attributable to the
          Bidder either directly or indirectly due to the failure of Proper Project Management.

13.16.7   Penal Provisions and right of termination is however subject to Force Majeure situation to be
          defined in the agreement.

13.17     Contact Details

13.17.1   The contact details for submitting the proposal is as follows:

          Primary Address
          Sri V. Narasimha Murty
          Asst. General Manager
          Andhra Bank
          Department of Information Technology,
          Cyber Gateway, 3rd Floor, ―D‖ Block, Wing-1
          Hi-tech City, Madhapur
          Hyderabad - 500 081: India
          Tel: 040-23122256




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          Fax: 040-23122260
          Emailagm-cbs@andhrabank.co.in
          Alternate Address:

          Sri. Ajay Gupta
          Asst. General Manager
          Andhra Bank
          Department of Information Technology
          Cyber Gateway, 3rd Floor, ―D‖ Block, Wing-1
          Hi-tech City, Madhapur
          Hyderabad - 500 081: India
          Tel: 040-23122260
          Fax: 040-23122261
          Email: dit-cm-cbs@andhrabank.co.in



13.18     Evaluation Schedule

13.18.1   The proposed evaluation schedule is tabulated below. However, the Bank, at its discretion can
          change the schedule assigning no specific reasons for the same.

13.18.2   Any other milestones will be communicated to the bidders in due course.
          Table 13-1Evaluation Schedule

           Activity                                        Scheduled Dates

           Date of issue of RFP in web-site                02nd March, 2010

           Last Date for receipt of Queries                8th March 2010

           Pre-bid Meeting                                 11th March 2010

           Last Date for Bank‘s response to Queries        13th March 2010

           Last Date for receipt of RFP response           1400 hours on 26th Mach 2010

           Technical Bid Opening                           1500 hours on 26th March 2010



13.18.3   Bids would be opened at Andhra Bank Department of Information Technology, Cyber Gateway,
          Hitec City, Hyderabad, if not specified by the Bank.




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Compliance Certificate

To,
The Assistant General Manager,
Department of Information Technology,
Andhra Bank,
‗D‘ Block, Right Wing, 3 rd Floor,
Cyber Gateway, Hitec City,
Hyderabad



Dear Sir,

Subject: Declaration and Acceptance of Terms and Conditions and Confirmation of offer

Ref: Andhra Bank Tender Ref No. 0666/35/2009-10/ dated --- for the implementation of Core
Banking Solution in the Regional Rural Banks.

The details submitted in the this document are true and correct to the best of our knowledge and
if it is proved other wise at any stage of execution of the contract, Andhra Bank has the right to
summarily reject the proposal and disqualify us form the process.

We confirm having understood the entire bid process, contents of RFP with all its terms and
conditions and undertake to abide by the terms and conditions. We have also understood that the
Bank may add, alter, modify the terms and conditions and post the required information in its
web-site under Tenders column and all such additions, modifications, alterations will form part
of the RFP.

We hereby acknowledge and confirm having accepted that the Bank can at its absolute
discretion apply whatever criteria it deems appropriate and fit, not just limiting to those criteria
set out in the RFP, in short listing of bidder for implementation of Core Banking Solution in
Andhra Bank sponsored RRBs.

We confirm having met all the criteria set out for Bidder‘s eligibility including financial
soundness. There is no legal action against our organization for any cause in any legal
jurisdiction which will impose restrictions to the ability of the Bidder in carrying out its
obligations under this RFP.

We confirm and warrant that key project personnel to be deployed in this project have been
sufficiently involved in similar projects in the past.

                                                            Authorized Signatory with Seal

Date:

Place:




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Bidder Profile
Description                             Details


The registered name of the Bidder


Bidder‘s registered address

                                        Address:


Bidder Address for Correspondence
                                        STD- Phone:
                                        e-mail Id:
                                        FAX No:
                                        Primary Contact:
                                              Name:
                                              Designation:
                                              STD- Phone No:
                                              Mobile Phone :
Contact name of the official who              e-mail ID :
can commit on the contractual terms
and the name of an alternate official   Alternate Contact:
who may be contacted in the                   Name :
absence of the former                         Designation:
                                              STD- Phone No:
                                              Mobile Phone :
                                              e-mail ID :


Contact addresses if different from
above


Business Structure


Constitution


Names of Directors


Organization Structure




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Description                              Details

Core Business of Bidder
Bidder‘s Organization has been in
existence since (date)
Bidder is engaged in IT integration
projects since (month & year)

and Core Banking implementation
for Banks since (month & year)

                                          Name of the Bank               Project         Project
                                                                         start date      end-date
Names of the Banks where CBS
implementation was undertaken by
the Bidder

                                         Explain experience in Finacle CBS implementation:
                                          2006-2007                   Rs.
Turnover of IT segment of the             2007-2008                   Rs.
company over the past 3 years             2008-2009                   Rs.
                                         Authenticated Proof of revenue from IT is to be furnished.
                                          2006-2007                   Rs.
                                          2007-2008                   Rs.
Net Profit of the Organization for        2008-2009                   Rs.
last 3 years
                                         Audited Balance-Sheet and Profit & Loss Account for last 3 years
                                         enclosed :
Bidders warrants financial solvency
i.e., ability to meet all the debts as   (substantiate)
and when they fall due
Bidder confirms that there are no
legal actions / restrictions by any
regulatory authority that would
affect the ability to deliver audit
deliverables
Total Number of employees in India
Number of employees who have
worked on similar projects in India
Date:

Place:                                                          Authorized Signatory with Seal




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Confirmation of Soft Copy

To
General Manager
Andhra Bank
Department of Information Technology
Cyber Gateway, ―D‖ Block, 3rd Floor, Wing-1
Hi-tech City, Madhapur
Hyderabad - 500 081: India

Dear Sir,

Sub: Implementation of Core Banking Solution in Regional Rural Banks sponsored by Andhra
Bank.

Further to our proposal dated XXXXXXX, in response to the Request for Proposal(Bank‘s
tender No.              hereinafter referred to as ―RFP‖) issued by Andhra Bank (―Bank‖) we
hereby covenant, warrant and confirm as follows:

The soft-copies of the proposal submitted by us in response to the RFP and the related
addendums and other documents including the changes made to the original tender documents
issued by the Bank, conform to and are identical with the hard-copies of aforesaid proposal
submitted by us, in all respects.



Yours faithfully,



Authorized Signatory

Designation

Bidder‘s corporate name




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Credentials – Core Banking Solutions implemented by the
      Bidder.

Description                         Details



Name of the Bank



Project Location


Address of client

Current Status of the Project


Client contact person and contact
details


Project start date


Duration of project


Project Closure Date


Scope of the Project (Software,
Hardware, Network etc,)


Names of project staff




                                                        Authorized Signatory with Seal

Date:

Place:



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Team Profile

Please provide details of the Governance structure for the proposed team and provide details of
the members of the Governance in the following format.

Description                           Details


Name of the member



Designation



Educational Qualification



Other Certifications/accreditations


Employment History


Total Banking Experience (no. of
years, areas of experience)


Experience in similar projects
(including client details, role of
member, activities performed,
duration of experience)




                                                          Authorized Signatory with Seal

Date:

Place:




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Project Plan and Resource Deployment

A Project plan similar to the illustrated plan needs to be provided by the Bidder.




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Query Format
CBS implementation for Andhra Bank
                                                     Request for Clarification
sponsored RRBs
To be mailed, delivered,         Assistant General Manager
posted, faxed or emailed
to:                              -- address, email id and fax
                                 number given in the schedule

Name of Organization             Name & position of person           Full formal address of the
submitting request               submitting request                  organization including phone,
                                                                     fax and email points of contact

                                                                     Tel:

                                                                     Fax:

                                                                     Email:

                                 Please Tick preferred contact option

Section Number:
Page Number:
Point Number:
Query description
Section Number:
Page Number:
Point Number:
Query description
Section Number:
Page Number:
Point Number:
Query description
Name and signature of
authorized person issuing this
request for clarification

                                                    Signature/Date                  Official designation




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Non – Disclosure Agreement Format


Strictly Private and Confidential

To,
The General Manager,
Andhra Bank,
‗D‘ Block, Right Wing, 3 rd Floor,
Cyber Gateway, Hitec City,
Hyderabad


Date

Dear Sir,

Confidentiality Undertaking

We acknowledge that during the course of the Engagement for ‗Implementation of ‗Core
Banking Solution in Andhra Bank Sponsored Regional Rural Banks‘ we shall have access to
and be entrusted with Confidential Information. In this letter, the phrase "Confidential
Information" shall mean information (whether of a commercial, technical, scientific,
operational, administrative, financial, marketing, business, or intellectual property nature or
otherwise), whether oral or written, relating to Andhra Bank / RRBs sponsored by Andhra Bank
and their business that is provided to us pursuant to this Agreement.

In consideration of the bank making Confidential Information available to us, we agree to the
terms set out below:

    1. We shall treat all Confidential Information as strictly private and confidential and take
       all steps necessary (including but not limited to those required by this Agreement) to
       preserve such confidentiality.
    2. We shall use the Confidential Information solely for the preparation of the Engagement
       and not for any other purpose.
    3. We shall not disclose any Confidential Information to any other person or firm.
    4. We shall not disclose or divulge any of the Confidential Information directly or
       indirectly to any other client of ours.
    5. We shall seek the bank‘s prior written consent to disclose the information, except in
       cases where such disclosure is required by any rule or requirement of law or any
       regulatory authority with which we are bound to comply
    6. This Agreement shall not prohibit disclosure of Confidential Information:

            i.   To our employees who need to know such Confidential Information to assist
                 with the Engagement and in the review processes



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          ii.     To our professional advisers for the purposes of our seeking advice. Such
                  professional advisors will be informed of the need to keep the information
                  confidential.

    7. This Agreement shall not apply to Confidential Information that:

           i.     Is in the public domain at the time it is acquired by us
          ii.     Enters the public domain after that, otherwise than as a result of unauthorized
                  disclosure by us
          iii.    Is independently developed by us.

    8. This Confidentiality Agreement shall continue for two years After the completion of the
        engagement unless and to the extent that the bank may release it in writing.
    9. We acknowledge that the Confidential Information will not form the basis of any
        contract between the bank and us.
    10. We warrant that we are acting as principal in this matter and not as agent or broker for
        any person, company, or firm.
    11. We acknowledge that no failure or delay by the bank in exercising any right, power, or
        privilege under this Agreement shall operate as a waiver thereof, nor shall any single or
        partial exercise thereof or the exercise of any other right, power, or privilege.
    12. This Agreement shall be governed by and construed in accordance with Indian laws and
        any dispute arising from it shall be subject to the exclusive jurisdiction of the Indian
        courts.

We have read this Confidentiality Undertaking carefully and confirm our agreement with its
terms.


With kind regards

Yours sincerely


Authorised Signatory:



Name:

Title/position:

Date:

Company Seal:

duly authorised for and on behalf of




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Write up on Products and Services of Chaitanya Godavari
      Grameena Bank.

Current Deposits.

   Interest free operative account with cheque book facility with certain minimum balances
   To operate the account regularly and frequently without any restriction on number of
    withdrawals or deposits.
   Can be opened by individuals, JHF, proprietary concern, partnership firms, private and
    public limited companies, registered or unregistered clubs and associations, co-operative
    societies, Government Departments religious endowments, semi Government or local
    bodies, trusts, executors, administrators, liquidators, receivers, assignees
   Accounts become inoperative if there are no transactions for 3 years and there are charges
    for inoperative account every year.
   Nomination facility available.
   TOD can be allowed in some current accounts.

   TOD in Current Accounts

   It is a contra entry for the debit balance i.e., TODs allowed in current account.
   The balance will be shown both under assets and liabilities.

   Credit Balances in OD and CC Accounts.

   The credit balances in overdrafts and cash credit accounts will be reported here.
   Not entitled to receive any interest.

Overdue deposits.

   A term deposit, which is neither renewed nor paid on its due date, is to be transferred
    together with interest to this account.
   No interest is payable on overdue deposits except under certain circumstances as defined
    bank / RBI.
   Full particulars of the term deposits like number, name of the depositor etc should be
    noted against the overdue deposit.

Saving Bank Accounts:

   Operative account with cheque book facility with certain minimum balances.
   Eligible for interest at half yearly intervals on monthly minimum products maintained
    between 10th and last day of the month.
   Can be opened by individuals / jointly with the name of the two or more persons, payable
    to any of them or to the survivor or survivors or to all of them jointly.
   Can be opened and operated by minors also.
   Prohibited to open in the name of a trading / business concerns, government departments,
    bodies, agencies depending upon budgetary allocations for their functioning with certain
    exceptions.



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   Nomination facility available.

Nirbhaya Saving Bank

   A savings bank account with accidental insurance facility with a maximum coverage of
    Rs.10,000/- by collecting premium as decided by the bank from time to time.
   Individuals / two or more individuals in the age group of 10 to less than 70 years can
    open these account.
   To maintain minimum balances in the account as decided from time to time.
   Nomination facility is available.
   Service charges (premium) is to be debited on the day of opening and on the 1 st day of the
    month in which the account is opened for every three years (i.e., premium is to be
    collected once in every three years)
   Some percentage of the service charges goes to P & L which will be decided by the bank
    from time to time.
   Eligible for interest at half yearly intervals on monthly minimum products maintained
    between 10th and last day of the month.

Nirbhaya Gold Savings Bank.

   A savings bank account with accident insurance facility with a maximum coverage of
    Rs.100,000/- by collecting premium as decided by the bank from time to time.
   Individuals / two or more individuals in the age group of 10 to less than 70 years can
    open these account.
   To maintain minimum balances in the account as decided from time to time.
   Insurance year is 1st October to 31st August.Premium will be debited on the date of
    opening and on 31st August every year.
   Nomination facility is available.
   Some percentage of the service charges goes to P & L which will be decided by the bank
    from time to time.
   Eligible for interest at half yearly intervals on monthly minimum products maintained
    between 10th and last day of the month.

Suraksha Saving Bank

   A savings bank account with accidental insurance facility with a maximum coverage of
    Rs.25,000/- by collecting premium as decided by the bank from time to time.
   Individual / two or more individuals in the age group of 10 to less than 70 years can open
    these accounts.
   To maintain minimum balances in the account as decided from time to time.
   Nomination facility is available.
   Service charges (premium) is to be debited on the day of opening and on 31st October,
    every year.
   Some percentage of the service charges goes to P & L which will be decided by the bank
    from time to time.
   Eligible for SB interest (3.5%)




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Suraksha Gold Savings Bank.

   A savings bank account with accident insurance facility with a maximum coverage of
    Rs.50000/- by collecting premium as decided by the bank from time to time.
   Individuals / two or more individuals in the age group of 10 to less than 70 years can
    open these account.
   To maintain minimum balances in the account as decided from time to time.
   Insurance year is 1st November to 31st October. Service charges (premium) is to be
    debited on the day of opening and on 31 st October, every year.
   Nomination facility is available.
   Some percentage of the service charges goes to P & L which will be decided by the bank
    from time to time.
   Eligible for SB interest (3.5%)

No frills account

   This scheme is introduced for total financial inclusion.
   Accounts can be opened with zero balance and there is no minimum balance restriction.
   Interest paid at 3.5% on the minimum balance maintained from 10 th to last day of the
    month.
   Nomination facility available.


Temporary Overdrafts in SB group of Accounts

   It is a contra entry for the debit balances i.e., TODs arised in savings bank accounts.
   It will be shown both under assets and liabilities.

Fixed Deposits

   A fixed amount can be deposited for a specified period.
   Minimum amount of deposit is Rs.100 with no ceiling on maximum amount.
   Minimum period of deposit is 15 days and maximum period is 120 months with
    automatic renewal facility and facility for premature cancellation.
   Standing instructions can be taken for disposal of interest.
   Loan facility is available upto 90% of the deposit amount.
   Deposits can be made by individuals, HUF, Proprietary concerns, partnership firms,
    Limited Companies, Registered bodies, trusts, Government / Quasi Government
    departments.
   TDS is applicable on interest as per IT Act.
   Nomination facility is available
   Rate of interest as applicable for different maturities ruling from time to time with 0.50%
    extra payable to senior citizens and 1% extra for staff members.

Kalpalatha Deposits (KLD)

   A reinvestment plan, where interest will be added to the deposit amount on quarterly
    basis.
   Minimum amount of deposit is Rs.100 with no ceiling on maximum amount.



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   Minimum period of deposit is 6 months and maximum period is 120 months and facility
    for premature cancellation.
   Rate of interest as applicable for different maturities ruling from time to time with 0.50%
    extra payable to senior citizens and 1% extra for staff members.
   Loan facility is available upto 90% of the accrued amount of deposit.
   Deposits can be made by individuals, HUF, Proparitory concerns, partnership firms,
    Limited Companies, Registered bodies, trusts, Government / Quasi Government
    departments.
   TDS is applicable on interest as per IT Act.
   Nomination facility is available


TAX saver deposit:

   A term deposit account from Income tax assesses to get exemption under section 80c of
    IT Act.
   Deposit can be in the form of Fixed deposits with monthly / quarterly interest payment or
    Kalpalatha Deposits
   Can be opened by Individuals or HUF, Income tax assesses with permanent account
    number either singly or jointly.
   In case of joint account, exemption under Sec 80C shall be available only to the 1 st holder
    of the deposit.
   To obtain the declaration from the depositor stating that the deposit amount under such
    scheme with various banks does not exceed Rs.100000/- under Sec 80c of IT act.
   It is for a fixed period of 5 years.
   Minimum amount of deposit is Rs.100/- or multiples thereof with a maximum of
    Rs.100000/-
   Rate of interest as applicable for different maturities ruling from time to time with 0.50%
    extra payable to senior citizens and 1% extra for staff members.
   No deposit loan to be allowed or no lien to any other loan.
   No provision for premature cancellation.
   No nomination shall be obtained in case of minor.

Cash Certificates:

   Odd amounts can be deposited (Issue price) for a fixed period to receive round amount
    (face value) on due date.
   Deposit amount is accepted for face value of Rs.100 or Rs.1000 or multiples thereof
   All other features as applicable to Kalpalatha Deposits.
   Rate of interest as applicable for different maturities ruling from time to time with 0.50%
    extra payable to senior citizens.

Recurring Deposits:

   An affordable amount can be deposited monthly to receive a lump sum amount together
    with interest on due date.
   Accounts can be opened by individuals (singly / jointly), clubs, proprietary concerns,
    partnership firms, companies associations, education institutions and other registered
    bodies for genuine saving purpose.



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   Minimum period of deposit is 6 month and in multiples of three months with a maximum
    period of 120 months with facility for premature cancellation.
   Accounts are accepted in monthly installments with a minimum sum of Rs.5/- per month
    and multiples thereof.
   Loan facility is available upto 90% of the deposit and interest accrued on it.
   Nomination facility is available.


Loans Against Deposits (LAD):

     Demand loan allowed against the deposits of our bank, duly maintaining the lien.
     Loan is repayable in lump sum or installments.
     Loan will be allowed duly maintaining certain margin against the deposit amount.
     Deposit rate of interest + 2% will be charged as interest on loan. For staff, rate of interest
      1% extra on deposit interest rate.

Loans Against KVPs,NSCs,LIC policies.

     Loans allowed against security of NSCs / KVPs / LIC Policies / Government Securities.
     These loans may be allowed as demand loan or term loan.
     Repayment is 36 EMI for term loans and 2 years for demand loans.
     Amount of loan is certain percentage of the face value + accrued interest which is decided
      by the bank and the percentage is different for different type of securities.

Loans Against Shares and Mutual funds.

   Loans/Overdrafts will be sanctioned against shares and units of mutual funds which are
    actively traded, quoted in Stock Exchanges and should be included in the approved list of
    sponsor bank.

Loans Against Gold (Non agricultural) (NAGL):

   Demand loan against the security of gold ornaments / jewellery to general public and
    staff members of the bank.
   Eligible amount of the will be arrived basing on the fitness of the gold appraisal value,
    per gram lending rate. Per gram lending rate is decided by the bank from time to time.
   Repayable in one year.
   Rate of interest is decided by the bank from time to time.
   Appraising charges, processing charges are applicable.

Clean Loans (CL)

   Loans allowed to confirmed employees, preferably in public sector having a residual
    service of at least three years to meet any genuine credit requirement for personal
    purpose.
   Loan amount will be arrived basing on the salary income. There is ceiling on loan amount
    (presently Rs.100000/-)
   Net take home pay after deduction of installments of the proposed loan shall not be less
    than 40% of gross salary. EMI shall not exceed 30% of gross salary of the applicant.



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     Repayment is 36 EMI
     Guarantor from a good third party is obtained.
     Processing charges and administrative charges are applicable.
     Rate of interest is decided by the bank from time to time.

Loans against merchandise:

   These loans will be allowed against pledge of farm products. This can be allowed to the
    traders only against central / state warehousing or market yard receipts.
   The period of loan is 1 year.
   The stock should be insured for full value.
   Eligible crops are paddy, groundnut, chillies, cotton, turmeric and pulses.
   Maximum loan amount is Rs.10.00 lakhs with a margin of 50% of the market value.
   Collateral security of 200% of the loan is obtained.

Invoked Guarantees Paid:

   Bank guarantee issued by bank and invoked by the beneficiaries are paid to the debit of
    this account.
   These amount attract commercial rate of interest with penalty.

Personal Loans for consumer durables and motor vehicles.

   Loans allowed for purchase of consumer durables like refrigerators, TV etc., and vehicles
    like car, motor cycle etc., to salaried persons, business people, professional & self
    employed and agriculturists.
   For motor vehicle loan, amount of loan will be decided on the basis of gross annual
    income.
   For loan amount of more than Rs.25000 collateral security is obtained. Third party
    guarantee is obtained.
   Maximum repayment period is 60 EMI

Other Term Loans against Mortgage of property.

   Loans allowed for investment needs like constructions of commercial complex, cinema
    halls, restaurants, hospitals etc., for good customers of the bank.
   Quantum of loan is based on the repayment capacity of the applicant and collateral
    security. Repayment period is 60 EMI.
   Collateral security worth 200% of the loan is obtained. Guarantee from third party is
    obtained.

All Staff Loans:

   Term loans to staff of the bank to purchase consumer durables.
   Rate of interest is decided by the bank from time to time.
   Repayments are from salary deductions.

Housing Loans to staff:




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   Loans to staff of the bank to purchase or construction of houses / flats.
   Quantum of loan will be arrived basing on cost of construction / cost of the house or flat
    and salary subject to repaying capacity subject to the ceilings fixed as per the cadre of the
    staff member
   Rate of interest will be decided by the bank from time to time.
   Repayments are from salary deduction,.


Additional Housing Loans to Staff:

   Loans to staff of the bank to purchase or construction of house / flats
   This loan is in addition to the housing loan sanctioned under concessional rate of interest.
   Repayments are from salary deductions.

Kisan Credit Cards

   Short term loan under agricultural direct finance towards production credit for raising
    crops.
   The limit is valid for 3 years.
   Account is to be brought credit or nil before 30 th June of every year after harvesting.
    Account is to be revived every year.
   Eligible amount of loan will be arriving basing on scales of finance for both the crop
    seasons and number of acers of cultivation.
   Rate of interest is decided by the bank from time to time.
   Interest subvention applicable for the loan accounts upto 31 st March, for the accounts
    disbursed in Kharif and upto 30 th June for the accounts disbursed in Rabi seasons.
   Crop insurance as prescribed by National Agricultural Insurance Company from time to
    time will be debited to accounts for eligible crops for Kharif and Rabi seasons.
   Processing charges and Administrative charges applicable for loan accounts of limit
    grater than 25000/-
   Eligible for interest at SB rate on credit balances in the accounts.
   If Government declares anavari the eligible accounts will be converted to Medium Term
    Loans (MTL) and transferred to CCMTL head.
   The borrowers are to be covered under personal accident insurance scheme. Nominal
    insurance premium is to be debited to the accounts every year.
   Bank claims interest portion exceeding 3% (borrower bears upto 30 in the regular SHG
    loan accounts from State Govt under Pavaddi scheme.

Rythu Mithra Groups:

   Bank extend finance crop loans and also investment credits to RMGs which have
    homogeneous membership of only SFs / MFs / Lessees / Tenant Farmers / Share
    Croppers. Optimum number of members in a group is 15.
   Quantum of loan: - upto a corpus to debt ratio of 1:20 can be considered keeping in view
    the requirement adequate credit for cultivation of crops and for investment credit.
   All loans to notified crops are to be covered under National Agricultural Insurance
    scheme. Insurance premium is to be debited to the accounts
   All members of RMG are to be covered under personal accident insurance scheme.
    Nominal insurance premium is to be debited to the accounts every year.



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   Interest subvention applicable as Kisan Credit Cards.
   All other guide lines of Kisan Credit Cards applicable.
   Interest subvention applicable for the loan accounts upto 31 st March, for the accounts
    disbursed in Kharif and upto 30 th June for the accounts disbursed in Rabi seasons.

Joint Liability Groups:

   The objective of the JLG is to augment flow of credit to tenant farmers cultivating land
    either as oral lessees or share croppers and small farmers who do not have proper title of
    their land holding through formation and financing of JLG.
   A JLG is an informal group comprising preferably of 4 to 10 individuals coming together
    for the purposes of availing bank loan either individually or through group mechanism
    against the mutual guarantee.
   Bank finance in two models
                    Individuals in the group
                    Total group

   Purpose of the credit: The finance to JLG is expected to be a flexible credit product
    addressing the credit requirements of its members including crop production,
    consumption, marketing and other productive purposes.
   Maximum loan amount may be restricted to Rs.50000/- per individual.
   No collateral security.
   Members of JLG are to be covered under personal accidental Insurance scheme.
   Crop loans to notified crops are to be covered under National Agricultural Insurance
    Scheme.

Produce Loans:

   These loans will be allowed to farmers against pledge of farm produce. In order to avoid
    distress sale by the farmers to meet the consumption needs and other family requirements
    the bank allow loans against pledge of farm produce. These loans are to be allowed only
    to farmers.
   Out of the loan allowed under produce loans the existing Kisan Credit Card loan if any
    shall be brought to credit balance.
   A margin of 50% is to be maintained at any point of time.
   Period of loan is 1 year from date of disbursement.
   The stocks should be insured for full value.
   Crops covered under this scheme are paddy, groundnut, chillies, cotton, turmeric and
    pulses.
   Maximum amount of loan is Rs.10.00 lakhs for an individual.
   Collateral security obtained for loan above Rs.50,000.00.

Gold Loans Agricultural:

   Demand Loan against the security of gold ornaments and jewellery for agricultural
    purpose.
   Agriculture direct finance towards production credit
   Eligible amount of loan will be arrived basing on the fitness of the gold, appraisal value
    per gram lending rate and linked to scales of finance.



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   Repayable on or before 30 th June.
   Rate of interest is decided by the bank from time to time.
   Appraiser charges are applicable. Re-Appraisal to be done once in two years for overdue
    loan accounts and re-appraisal charges applicable.
   Processing charges applicable.
   Penal interest of 2% applicable for OD account with limits of grater than 25000/-
   Interest subvention applicable for the loan accounts upto 31 st March, for the accounts
    disbursed in Kharif and upto 30 th June for the accounts disbursed in Rabi seasons.

Agricultural Term Loans (ATL)

   Term Loan sanctioned for various agricultural purpose like
                    Minor Irrigation
                    Land Development
                    Farm Mechanization
                    Construction of Farm Buildings and Storage facilities like Godowns
                    Development loans to Plantations, Horticulture, Forestry, Oil Palm,
                       cultivation etc.,
                    Hi-tech agricultural projects such as Floriculture, Agro Processing,
                       Tissue Culture, Mushroom Cultivation etc.,
                    Non conventional energy source like Biogas, Solar pump sets, wind
                       power etc
                    Purchase of 2 wheeler / 4 wheeler under Rythu Chakra Scheme.
                    Loans to unemployed Agril. Graduates under Agri clinic and agri
                       business center
                    Land purchase scheme.
   Unit cost, repayment schedule etc., prescribed by NABARD from time to time shall be
    followed. Applicant should contribute some margin.
   There are different eligibility criteria and guidelines for different schemes depending on
    the activity of loans.
   Collateral security needed for loan limit of grater than 50000. Third party guarantee
    obtained.
   Processing charges, administrative charges applicable for limits grater than Rs.25000.
    Government sponsored loans exempted from charges.
   For backend subsidy loan accounts interest to be charged on loan portion (net of subsidy)
    only.

Agricultural Allied Activities:

   Term loan sanctioned for various purposes like;
                    Dairy
                    Poultry
                    Sheep / Goat / Piggery / Rabbit rearing
                    Aqua culture
                    Seri culture
   Unit cost, repayment schedule etc., prescribed by NABARD from time to time shall be
    followed. Applicant should contribute some margin.
   There are different eligibility criteria and guidelines for different schemes depending on
    the activity of loans.



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   Collateral security needed for loan limit of grater than Rs.50000. Third party guarantee
    obtained.
   Processing charges, administrative charges applicable for limits grater than Rs.25000.
    Government sponsored loans exempted from charges.
   For backend subsidy loan accounts interest to be charged on loan portion (net of subsidy)
    only.


Indirect Finance to Agriculture

   Loan sanctions upto 40 lakhs for distribution of fertilizers, pesticides distribution of
    inputs for allied activities such as cattle feed etc.,
   Loans to electricity boards, PACS, FSS and LAMPS. Finance for hire purchase scheme
    for distribution of agricultural machines, implements. Construction and running of
    storage facilities (ware house, market yards etc.,) Cold storage units in rural areas.
    Finance to dealers in drip irrigation / Sprinkler irrigation etc.,

Small Scale Industries:

   Bank extend most SSI entrepreneurs towards both term loans and working capital
    requirements upto Rs.1 crore
   Any changes in definition of SSI by the Government / RBI will be announced from time
    to time.
   Rate of interest is as decided by the bank from time to time.
   Repayable over fixed period of time
   Collateral security obtained. Third party guarantee obtained.
   Processing charges, Administrative charges applicable.
   Penal interest applicable for OD accounts.
   Bank can extend loan upto 50 lakhs without collateral security or third party guarantee
    where 75% of the loan amount will be guaranteed by CGTMSE.
   Bank is to pay one time guarantee fee and annual service fee for the accounts sanctioned
    and CGTMSE.
   Bank receive guaranteed loan portion from CGTMSE in case of default of loan accounts.
   For backend subsidy loan accounts interest to be charged on loan portion (net of subsidy)
    only.

Transport Operators:

   Advances to small road and water transport operators owning a fleet of vehicles, not
    exceeding 10 vehicles, including the one proposed to be financed. Only new vehicles are
    to be financed.
   Repayment period is 36 to 84 EMI depending upon the repaying capacity of the
    borrowers.
   Collateral security, 3 rd party guarantee obtained.
   Rate of interest is as decided by the bank from time to time.
   Penal interest eligible for OD accounts.
   Processing charges, administrative charges applicable.
   For backend subsidy loan accounts interest to be charged on loan portion (net of subsidy)
    only.



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Retail Trade

   Advance granted to private retail traders dealing in essential commodities (fair price
    shops) and consumer co-operative stores and other private retail traders with credit limits
    not exceeding Rs.10.00 lakhs
   Credit facilities granted for acquiring premises or furniture / showcases and office
    equipment and for working capital requirements.
   Repayment period is 36 to 84 EMI depending upon the repaying capacity of the
    borrowers.
   Collateral security, 3 rd party guarantee obtained.
   Rate of interest is as decided by the bank from time to time.
   Penal interest eligible for OD accounts.
   Processing charges, administrative charges applicable.
   For backend subsidy loan accounts interest to be charged on loan portion (net of subsidy)
    only.

Business Enterprises:

   Loans extended to individuals and firms managing a business enterprise established
    mainly for the purpose of providing any service other than professional services whose
    original cost price of the equipment use for the purpose of business does not exceed
    Rs.20.00 lakhs without any restrictions on working capital limit.
   Advances for acquisition construction renovation of house-boats and other tourist
    accommodation and distribution of mineral oils.
   Purpose of Loans:- Credit facilities granted for purchasing of necessary equipment,
    repairing or renovating the existing equipment, acquiring or repairing the premises,
    purchasing tools and for working capital requirements.
   Repayment is 36 to 60 EMI depending upon the repayment capacity of the borrowers.
   Collateral security, 3 rd party guarantee obtained.
   Rate of interest is as decided by the bank from time to time.
   Penal interest eligible for OD accounts.
   Processing charges, administrative charges applicable.
   For backend subsidy loan accounts interest to be charged on loan portion (net of subsidy)
    only.

Professional and Self Employed

   Loans to professional and self-employed persons include loans for the purpose of
    purchasing equipment, repairing or renovating existing equipment and / or acquiring and
    repairing business premises or for purchasing tools and / or working capital requirements
    to medical practitioners including dentists, Chartered Accountants, Surveyors,
    Construction contractors or Management consultants or to a person trained in any other
    art or craft who holds either a degree or diploma from any institution established, aided or
    recognized by Government or to a person who is considered by the bank as technically
    qualified or skilled in the field in which he is employed.
   Limits upto Rs.10.00 lakhs of which not more than Rs.2.00 lakh for working capital
    requirement, come under priority sector.



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     Repayment 36 to 72 EMI with a gestation period not exceeding 3 months.
     Collateral security, 3 rd party guarantee obtained for limits above Rs.50,000.00
     Rate of interest is as decided by the bank from time to time.
     Penal interest eligible for OD accounts.
     Processing charges, administrative charges applicable.
     For backend subsidy loan accounts interest to be charged on loan portion (net of subsidy)
      only.

General Credit Card:

   This scheme shall cover General Credit needs of existing customers of the branches.
   The objective of the scheme is to provide hassle free credit to our bank customers based
    on assessment of cash flow without insisting on security purpose or end use of the credit.
   Maximum limit is Rs.25000/-
   No guarantee, no collateral security.
   Account will be revived every year and renewed after three years.
   Card holders to be covered under personal accident insurance scheme for Rs.25000/-

Housing Loans (HL):

   Term Loans to salary persons / business men / professional / self employed /
    agriculturists to purchase or construction of house / flats or to meet repairs of the house.
    Quantum of finance depends upon monthly gross income / annual income as per IT
    return / Income certificates duly fixing certain margin on the cost of construction /
    amount of repairs.
   Housing loans upto 15 lakhs irrespective of the location of the house are to be categorized
    under priority sector. The applicant‘s age should not be more than 55 years and not less
    than 18 years.
   For salaried persons maximum loan amount eligible is 36 times net monthly salary of the
    applicant. For agriculturist maximum loan amount eligible is 3 times net annual income.
    For business persons maximum loan amount eligible is 3 times of the average annual
    income for the last 3 years.
   Repayment period should not exceed 15 years inclusive of moratorium or initial holiday
    period till completion of construction or 18 months from the date of disbursement of 1 st
    installment of the loan whichever is earlier.
   Collateral security, 3 rd party guarantee obtained.
   Rate of interest is as decided by the bank from time to time.
   Penal interest eligible for OD accounts.
   Processing charges, administrative charges applicable.

Educational Loans (EL)

   Term loans to students to meet the expenses of the studies for
                  Studies in Abroad
                  Studies in India.

   Loans will be sanctioned for studying professional courses like
                  Engineering, Medical,
                  ICWA, CA



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                      Courses conducted by IIM, IIT
                      Post graduation, MCA, MBA
                      Phd etc.,
     The applicant must be an Indian, over 16 years of age but less than 30 years and must be
      merit student.
     Loan will be considered for Tuition fee Examination fee, project work, books, hostel fee,
      computer etc.,
     Repayment: the loan is repayable in 60 EMI after a gestation period of 1 year after course
      period or 6 months after getting job whichever is earlier. Shorter repayment period may
      also be fixed taking into consideration of the repayment capacity.
     Collateral security for limits above Rs.4.00 lakhs.
     Rate of interest is as decided by the bank from time to time.
     Penal interest eligible for OD accounts.
     Processing charges, administrative charges applicable.


Self Help Groups (SHG):

   Loans sanctioned to SHGs and to VOs / NGOs / MACS for onward lending to SHGs /
    members of SHGs / discreet individuals or small groups which are in the process of
    forming into SHGs will be reckoned as priority sector lending and shown in this category.
   Eligible amount will be arrived basing on the corpus fund / Critical rating index / micro
    credit plan.
   Repayment period should be for a minimum of 36 months. Depending upon the
    repayment capacity of the group members it may get extended upto 60 months.
   Rate of interest is decided by the bank from time to time.
   Bank claims interest portion exceeding 3% (borrower bears upto 30 in the regular SHG
    loan accounts from State Govt under Pavaddi scheme.

Housing Loans (Indiramma):

   Loan sanctioned to Self Help Groups for the purpose of housing under the A P Govt
    Indiramma scheme, will be shown under this category.
   All other guidelines are same as SHG loans.

CGC Invoked Accounts:

   Loans where credit guarantee corporation cover is invoked and outstanding are
    transferred to this head.

Temporary Overdrafts:

   Overdraft allowed for a temporary period in excess of the credit balance in Current
    Accounts with satisfactory transactions in the account for a minimum period of 1 year.
   To be allowed against a request letter duly specifying the Purpose, Amount and period for
    which the TOD is required.
   Allowed for a maximum period of 15 days.
   Not to allow more than 6 times during the year.




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   TOD should not be allowed for cash drawals. It should be allowed for passing cheques
    drawn for payment of statutory dues and other important urgent obligations of the
    account holder.

Clean Overdrafts to Staff (CODST)

   Allow to staff with specific sanction from the competent authority. Eligible amount of
    limit will be arrived basing on the gross pay subject to a maximum limit of Rs.3.75 lakhs
    and depends on the cadre of the staff member.
   Limit is valid for 2 years.
   Salary of the staff member is to be credited to the CODST account every month.
   Rate of interest is to be decided by the bank from time to time.
   The limit is to be reduced by 20% every year during the last five years of retirement.

Secured Overdrafts (SOD)

   Overdrafts allowed to against securities like deposits of the bank ;
                   Government securities like NSCs, KVPs, LIC policies etc.,


SOD against GOLD:

   SOD will be sanctioned to those customers who borrow amount against gold ornaments
    frequently and repeatedly. The facility can be extended only for non agricultural purpose.
    This loan can be sanctioned to individuals who maintain SB / CD accounts.
   Duration of the limit is 1 year.
   The minimum interest to be paid shall be Rs.1000 per anum.
   Appraising charges are applicable.
   Reappraising to be done once in two years.

SOD against mortgage of urban property:

   This scheme shall cover the working capital needs of valued customers. This is to provide
    adequate credit to the customers based on the assessment of repaying capacity and worth
    of the security.
   Contractors, traders, hotels, restaurants, hospitals, schools & colleges and wine dealers
    are the eligible borrowers.
   Maximum loan amount is Rs.25.00 lakhs.
   Collateral security of immovable property located in urban areas worth atleast 200% of
    the loan amount. Guarantee from 3 rd party is obtained.
   Limit is valid for 1 year.
   Rate of interest will be decided by the bank from time to time.

Open Cash Credit (OCC)

   Working capital limits against the hypothecation of moveable security.
   Eligible amount of limit will be fixed within the Maximum permissible bank finance
    (MPBF) arrived under various assessment methods.
   Debits will be subject to drawing power.



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   Borrower is to maintain certain percentage of margin.
   Collateral security is obtained.

Suit Filed Accounts:

   All loan accounts against which suits are filed will be transferred to this head.
   All further transactions will be routed through this account.

Clean Bills Purchase:

   Cheques purchased tendered by customers belonging to savings bank / current accounts
    and borrowers.


Clean Bills Purchased Instant Credit:

   Cheques purchased tendered by customers belonging to the savings bank category.
   Cheques upto a maximum of Rs.15000/- can be purchased.

Swarojgar Credit Cards:

   To meet working capital or term loan for acquiring fixed assets or both including
    reasonable component for consumption needs upto Rs.25000/- to small businesses. In
    deserving cases branch may consider even limits upto Rs.50000/-
   Working capital limit to be renewed annually and term loan is repayable in 5 years.
   This scheme covers small artisans to handloom wavers, service sector, fishermen, self
    employed persons, Riksha owners other micro entrepreneurs
   Card holders are to be covered under group insurance scheme upto an amount of
    Rs.25000/-

Bank Guarantees:

   Financial guarantees as well as performance guarantees and differed payment guarantees
    can be issued.
   Minimum cash margin shall be 15%
   Collateral security of property worth not less than 150% is to be obtained for the
    unsecured portion.
   Counter guarantee is to be obtained from the customer on whose behalf the guarantee is
    issued.
   Bank guarantee can be extended and cancelled.

Solvency certificate.

   Solvency certificate has to be issued basing on the verification of properties mentioned in
    the property statements balance sheets, income tax & wealth tax assessment orders.




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Write up on Products and Services of Rushikulya Gramya
      Bank.

Current Deposits. GL 1020

   Interest free operative account with cheque book facility with certain minimum balances
   To operate the account regularly and frequently without any restriction on number of
    withdrawals or deposits.
   Can be opened by individuals, JHF, proprietary concern, partnership firms, private and
    public limited companies, registered or unregistered clubs and associations, co-operative
    societies, Government Departments religious endowments, semi Government or local
    bodies, trusts, executors, administrators, liquidators, receivers, assignees
   Accounts become inoperative if there are no transactions for 3 years and there are charges
    for inoperative account every year. (PERIOD OF YEARS MAY CHANGE)
   Nomination facility available.
   TOD can be allowed in some current accounts.

   TOD in Current Accounts GL 1120

   It is a contra entry for the debit balance i.e., TODs allowed in current account.
   The balance will be shown both under assets and liabilities.

   Credit Balances in OD and CC Accounts. GL 1050

   The credit balances in overdrafts and cash credit accounts will be reported here.
   Not entitled to receive any interest.

Overdue deposits. GL 1070

   A term deposit, which is neither renewed nor paid on its due date, is to be transferred
    together with interest to this account.
   No interest is payable on overdue deposits except under certain circumstances as defined
    bank / RBI.
   Full particulars of the term deposits like number, name of the depositor etc should be
    noted against the overdue deposit.
   Amt outstanding in this account can be renewed to any term deposit as per the guidelines
    of the bank

Saving Bank Accounts: GL 1090

   Operative account with cheque book facility with certain minimum balances.
   Eligible for interest at half yearly intervals on monthly minimum products maintained
    between 10th and last day of the month.
   Can be opened by individuals / jointly with the name of the two or more persons, payable
    to any of them or to the survivor or survivors or to all of them jointly.
   Can be opened and operated by minors also.




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   Can be opened in the name of government bodies, agencies depending upon budgetary
    allocations for their functioning with certain exceptions. Like PO, DRDA, School a/cs,
    BDO etc.
   Nomination facility available.


Suraksha Saving Bank GL 1110

   A savings bank account with accidental insurance facility with a maximum coverage of
    Rs.1,00,000/- by collecting premium as decided by the bank from time to time.
   Individual / two or more individuals in the age group of 10 to less than 70 years can open
    these accounts.
   To maintain minimum balances in the account as decided from time to time.
   Nomination facility is available.
   Service charges (premium) is to be debited on the day of opening and on 31 st October,
    every year.
   Some percentage of the service charges goes to P & L which will be decided by the bank
    from time to time.
   Eligible for SB interest (3.5%)
   Annual premium to be debited on 01/11 of every year( date is optional)


No frills account GL 1090 (SBNF)
   This scheme is introduced for total financial inclusion.
   Accounts can be opened with zero balance and there is no minimum balance restriction
      but maximum credit amt is fixed (subject to change from time to time)
   Interest paid at 3.5% on the minimum balance maintained from 10 th to last day of the
      month.
   Nomination facility available.

   (GL 1090 includes a/c types as SB/ SBNF/SBNRG/SBSHG)

Temporary Overdrafts in SB group of Accounts GL 1120

   It is a contra entry for the debit balances i.e., TODs arised in savings bank accounts.
   It will be shown both under assets and liabilities.

Fixed Deposits GL 1150

   A fixed amount can be deposited for a specified period.
   Minimum amount of deposit is Rs.100 with no ceiling on maximum amount.
   Minimum period of deposit is 15 days and maximum period is 120 months with
    automatic renewal facility and facility for premature cancellation.
   Standing instructions can be taken for disposal of interest.
   Loan facility is available upto 90% of the deposit amount.
   Deposits can be made by individuals, HUF, Proprietary concerns, partnership firms,
    Limited Companies, Registered bodies, trusts, Government / Quasi Government
    departments.
   TDS is applicable on interest as per IT Act.



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

  And the Interest Type is :

  15 – 45 days
  46 - 90 days
  91 - 179 days
  180 – 364 days
  1 year to < 2 years
  2 years to < 3 years
  3 years to <5 years
  5 years to 10 years

  This interest type may change from time to time viz: 1 year to < 3 years etc.


  Cash payment restrict upto Rs 19999/ in all GL 1150,1160,1210,1200

Kalpabata Deposits (KBD) GL 1060

   A reinvestment plan, where interest will be added to the deposit amount on quarterly
    basis.
   Minimum amount of deposit is Rs.100 with no ceiling on maximum amount.
   Minimum period of deposit is 6 months and maximum period is 120 months and facility
    for premature cancellation.
   Rate of interest as applicable for different maturities ruling from time to time with 0.50%
    extra payable to senior citizens and 1% extra for staff members.
   Loan facility is available upto 90% of the accrued amount of deposit.
   Deposits can be made by individuals, HUF, Proparitory concerns, partnership firms,
    Limited Companies, Registered bodies, trusts, Government / Quasi Government
    departments.
   TDS is applicable on interest as per IT Act.
   Nomination facility is available
   Maximum cash payment restricted upto Rs 19999 ( subject to change)


TAX saver deposit: GL 1165

   A term deposit account from Income tax assesses to get exemption under section 80c of
    IT Act.
   Deposit can be in the form of Fixed deposits with monthly / quarterly interest payment or
    Kalpabata Deposits
   Can be opened by Individuals or HUF, Income tax assesses with permanent account
    number either singly or jointly.
   In case of joint account, exemption under Sec 80C shall be available only to the 1 st holder
    of the deposit.




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   To obtain the declaration from the depositor stating that the deposit amount under such
    scheme with various banks does not exceed Rs.100000/- under Sec 80c of IT act.
   It is for a fixed period of 5 years.
   Minimum amount of deposit is Rs.100/- or multiples thereof with a maximum of
    Rs.100000/-
   Rate of interest as applicable for different maturities ruling from time to time with 0.50%
    extra payable to senior citizens and 1% extra for staff members.
   No deposit loan to be allowed or no lien to any other loan.
   No provision for premature cancellation.
   No nomination shall be obtained in case of minor.

Cash Certificates: GL 1200

Odd amounts can be deposited (Issue price) for a fixed period to receive round amount (face
value) on due date.
   Deposit amount is accepted for face value of Rs.100 or Rs.1000 or multiples thereof
   All other features as applicable to Kalpalatha Deposits.
   Rate of interest as applicable for different maturities ruling from time to time with 0.50%
      extra payable to senior citizens.

But this GL includes Rushikulya Sarva Sreshta and Sarva Sreshta Plus in lines of Andbhra
Bank schemes and scheme already closed but some a/cs outstanding in this GL

Recurring Deposits: GL 1210

   An affordable amount can be deposited monthly to receive a lump sum amount together
    with interest on due date.
   Accounts can be opened by individuals (singly / jointly), clubs, proprietary concerns,
    partnership firms, companies associations, education institutions and other registered
    bodies for genuine saving purpose.
   Minimum period of deposit is 6 month and in multiples of three months with a maximum
    period of 120 months with facility for premature cancellation.
   Accounts are accepted in monthly installments with a minimum sum of Rs.5/- per month
    and multiples thereof.
   Loan facility is available upto 90% of the deposit and interest accrued on it.
   Nomination facility is available.

Cash payment restricted upto 19999 / (as per Andhra Bank) and subject to change.




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13.19
        Loans Against Deposits (LAD): GL2090
             Demand loan allowed against the deposits of our bank, duly maintaining the lien.
             Loan is repayable in lump sum or installments.
             Loan will be allowed duly maintaining certain margin against the deposit amount.
             Deposit rate of interest + 2% will be charged as interest on loan. For staff, rate of interest
              1% extra on deposit interest rate.
        Loans Against KVPs,NSCs,LIC policies GL .2100
             Loans allowed against security of NSCs / KVPs / LIC Policies / Government Securities.
             These loans may be allowed as demand loan or term loan.
             Repayment is 36 EMI for term loans and 2 years for demand loans.
             Amount of loan is certain percentage of the face value + accrued interest which is decided
              by the bank and the percentage is different for different type of securities.


        Loans Against Gold (Non agricultural) (NAGL): GL2110
           Demand loan against the security of gold ornaments / jewellery to general public and
            staff members of the bank.
           Eligible amount of the loan will be arrived basing on the fineness of the gold, appraisal
            value, per gram lending rate. Per gram lending rate is decided by the bank from time to
            time.
           Repayable in one year.
           Rate of interest is decided by the bank from time to time.
           Appraising charges are applicable.


        Clean Loans (CL): GL2130
           Loans allowed to confirmed employees, preferably in public sector having a residual
            service of at least three years to meet any genuine credit requirement for personal
            purpose.
           Loan amount will be arrived basing on the salary income.Maximum 18 months salary in
            case of Govt employees and 10 months for employees of private concerns.In case of non
            salaried persons average income of last 3 years taken as per IT returns.
           Net take home pay after deduction of installments of the proposed loan shall not be less
            than 40% of gross salary. EMI shall not exceed 30% of gross salary of the applicant.
           Repayment is maximum 60 EMI
           Guarantor from a good third party is obtained.
           Processing charges and administrative charges are applicable.
           Rate of interest is decided by the bank from time to time.




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Personal Loans for consumer durables and motor vehicles: GL 2130.

   Loans allowed for purchase of consumer durables like refrigerators, TV etc., and vehicles
    like car, motor cycle etc., to salaried persons, business people, professional & self employed
    and agriculturists.
   For motor vehicle loan, amount of loan will be decided on the basis of gross annual income.
   For loan amount of more than Rs.25000 collateral security is obtained. Third party
    guarantee is obtained.
   Maximum repayment period is 60 EMI

Other Term Loans FOR HIGH YALUE ADVANCES GL :2330.

   Loans allowed for investment needs like constructions of commercial complex, cinema
    halls, restaurants, hospitals etc., for good customers of the bank.
   Quantum of loan is based on the repayment capacity of the applicant and collateral security.
    Repayment period is 60 EMI.
   Collateral security worth 200% of the loan is obtained. Guarantee from third party is
    obtained.

Mortgage loan: GL 2160

   To meet credit needs of the borrowers for personal purposes such as marriage,medical
    expenses,educational expenses and business needs
   Applicant must own a house or in the spouse‘s name at Municipality or NAC headquarters
    including house building on roadside along NH-5 and NH-217.
   applicants must have assured /verifiable sources of income and within the age group of 21-
    60 years.
   Security to be obtained @200% of the limits sanctioned
   Interest rate as decided by the bank from time to time
   Appraisal charges as decided by the bank from time to time.

Advance against Rent Receivables: GL 2160

   The address are self liquidating in nature apart from providing security coverage.
   Applicable to residential/commercial properties at semi-urban and urban places only.
   Eligible tenants includes reputed public sector/private sector/multi national undertakings,
    banks and financial institutions and individuals of high repute and credibility.
   Maximum loan amount allowed is not more than Rs.1.00 Crore. Loan amount shall be
    worked out based on monthly rent receivables in the next 84 months/unexpired lease period
    including option period after making adjustments for TDS, Tax and 15% of the rend
    towards maintenance.
   Rte of interest as decided by the Bank from time to time.
   Primary security shall be rent receivables. No collateral securities for loans up to Rs.1.00
    lac. For more than Rs.1.00 lac loans equitable mortgage of the property of value not less
    than 150% of the loan amount.
   The loan shall be repaid within the unexpired lease period including option period or 84
    months which ever is less.




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    General power of Attorney (POA), preferably notarized shall be executed by the borrower
     in favour of the Bank, to be accepted by the lessees (by way of a letter) to collect monthly
     rentals from the lessee on behalf of the borrower.

All Staff Loans: GL 2165

     Term loans to staff of the bank to purchase consumer durables.
     Rate of interest is decided by the bank from time to time.
     Repayments are from salary deductions.

Housing Loans to staff: GL 2166

     Loans to staff of the bank to purchase or construction of houses / flats.
     Quantum of loan will be arrived basing on cost of construction / cost of the house or flat
      and salary subject to repaying capacity subject to the ceilings fixed as per the cadre of the
      staff member
     Rate of interest will be decided by the bank from time to time.
     Repayments are from salary deduction,.


Additional Housing Loans to Staff:          GL 2167         AND GL 2168- ACCUED INT ON
STAFF HBL/AHBL

     Loans to staff of the bank to purchase or construction of house / flats
     This loan is in addition to the housing loan sanctioned under concessional rate of interest.
     Repayments are from salary deductions.

Rushikulya Bank Kisan Credit Cards: GL 2190

     Short term loan under agricultural direct finance towards production credit for raising
      crops.
     The limit is valid for 3 years.
     Account is to be brought credit or nil before 30 th June of every year after harvesting.
      Account is to be revived every year.
     Eligible amount of loan will be arrived basing on scales of finance for both the crop
      seasons and the acrage of cultivation.
     Rate of interest is decided by the bank from time to time.
     Interest subvention applicable for the loan accounts upto 31 st March, for the accounts
      disbursed in Kharif and upto 30 th June for the accounts disbursed in Rabi seasons.
     Crop insurance as prescribed by National Agricultural Insurance Company from time to
      time will be debited to accounts for eligible crops for Kharif and Rabi seasons.
     Processing charges and Administrative charges applicable for loan accounts of limit
      above 25000/-

     If Government declares anavari the eligible accounts will be converted to Medium Term
      Loans (MTL) and transferred to CCMTL head.
     The borrowers are to be covered under personal accident insurance scheme. Nominal
      insurance premium is to be debited to the accounts every year.




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Insurance on all RBKC a/cs for covering accidental insurance upto Rs 50000/ on
disbursement and yearly premium on all existing accounts Rs 50/ out of which some amt
to P&L

Joint Liability Groups:    ( No separate GL Head)

   The objective of the JLG is to augment flow of credit to tenant farmers cultivating land
    either as oral lessees or share croppers and small farmers who do not have proper title of
    their land holding through formation and financing of JLG.
   A JLG is an informal group comprising preferably of 4 to 10 individuals coming together
    for the purposes of availing bank loan either individually or through group mechanism
    against the mutual guarantee.
   Bank finance in two models
                    Individuals in the group
                    Total group

  Purpose of the credit: The finance to JLG is expected to be a flexible credit product
     addressing the credit requirements of its members including crop production,
     consumption, marketing and other productive purposes.
  Maximum loan amount may be restricted to Rs.50000/- per individual.
  No collateral security.
  Members of JLG are to be covered under personal accidental Insurance scheme.
  Crop loans to notified crops are to be covered under National Agricultural Insurance
     Scheme.
Gold Loans Agricultural: GL 2200

  Demand Loan against the security of gold ornaments and jewellery for agricultural purpose.
  Agriculture direct finance towards production credit
  Eligible amount of loan will be arrived basing on the fineness of the gold, appraisal value per
      gram, lending rate and linked to scales of finance.
  Repayable on or before 30th June.
  Rate of interest is decided by the bank from time to time.
  Appraiser charges are applicable. Re-Appraisal to be done once in two years for overdue loan
      accounts and re-appraisal charges applicable.

  Penal interest of 2% applicable for OD accounts.
   Interest subvention applicable for the loan accounts upto 31 st March, for the accounts
     disbursed in Kharif and upto 30 th June for the accounts disbursed in Rabi seasons.
Agricultural Term Loans (ATL) GL 2210

   Term Loan sanctioned for various agricultural purpose like
     Minor Irrigation
     Land Development
     Farm Mechanization
     Construction of Farm Buildings and Storage facilities like Godowns
     Development loans to Plantations, Horticulture, Forestry, Oil Palm, cultivation etc.,
     Hi-tech agricultural projects such as Floriculture, Agro Processing, Tissue Culture,
       Mushroom Cultivation etc.,
     Non conventional energy source like Biogas, Solar pump sets, wind power etc



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       .
       Loans to unemployed Agril. Graduates under Agri clinic and agri business center
       Land purchase scheme.
     Unit cost, repayment schedule etc., prescribed by NABARD from time to time shall be
      followed. Applicant should contribute some margin.
     There are different eligibility criteria and guidelines for different schemes depending on
      the activity of loans.
     Collateral security is required for loan limit above Rs.50000. Third party guarantee
      obtained.
     Processing charges, administrative charges applicable for limits above Rs.200000.
      Government sponsored loans exempted from charges.
     For backend subsidy loan accounts interest to be charged on loan portion (net of subsidy)
      only.

Agricultural Allied Activities: GL 2201

   Term loan sanctioned for various purposes like;
                    Dairy
                    Poultry
                    Sheep / Goat / Piggery / Rabbit rearing
                    Aqua culture
                    Seri culture
   Unit cost, repayment schedule etc., prescribed by NABARD from time to time shall be
    followed. Applicant should contribute some margin.
   There are different eligibility criteria and guidelines for different schemes depending on
    the activity of loans.
   Collateral security needed for loan limit above Rs.50000. Third party guarantee obtained.
   Processing charges, administrative charges applicable for limits above Rs.200000.
    Government sponsored loans exempted from charges.
   For backend subsidy loan accounts interest to be charged on loan portion (net of subsidy)
    only.

Indirect Finance to Agriculture -    GL 2201

   Loan sanctions upto 40 lakhs for distribution of fertilizers, pesticides distribution of
    inputs for allied activities such as cattle feed etc.,
   Loans to electricity boards, PACS, FSS and LAMPS. Finance for hire purchase scheme
    for distribution of agricultural machines, implements. Construction and running of
    storage facilities (ware house, market yards etc.,) Cold storage units in rural areas.
    Finance to dealers in drip irrigation / Sprinkler irrigation etc.,

KISAN YANA: PURCHASE OF 2 WHEELERS ALLOWED TO EXISTING RBKC
BORROWERS WITH GOOD TRACT RECORD OF LAST 3 YEARS - GL 2220



Small Scale Industries: GL 2230




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   Bank extend most SSI entrepreneurs towards both term loans and working capital
    requirements upto Rs.1 crore
   Any changes in definition of SSI by the Government / RBI will be announced from time
    to time.
   Rate of interest is as decided by the bank from time to time.
   Repayable over fixed period of time
   Collateral security obtained. Third party guarantee obtained.
   Processing charges, Administrative charges applicable.
   Penal interest applicable for OD accounts.
   Bank can extend loan upto Rs5.00 lakhs without collateral security .
   Bank is to pay one time guarantee fee and annual service fee for the accounts sanctioned
    under CGTMSE.
   Bank receives guaranteed loan portion from CGTMSE in case of default of loan
    accounts.
   For backend subsidy loan accounts interest to be charged on loan portion (net of subsidy)
    only.

Transport Operators: GL 2240

   Advances to small road and water transport operators owning a fleet of vehicles, not
    exceeding 10 vehicles, including the one proposed to be financed. Only new vehicles are
    to be financed.
   Repayment period is 36 to 84 EMI depending upon the repaying capacity of the
    borrowers.
   Collateral security, 3 rd party guarantee obtained.
   Rate of interest is as decided by the bank from time to time.
   Penal interest eligible for OD accounts.
   Processing charges, administrative charges applicable.
   For backend subsidy loan accounts interest to be charged on loan portion (net of subsidy)
    only.

Retail Trade GL2250

   Advance granted to private retail traders dealing in essential commodities (fair price
    shops) and consumer co-operative stores and other private retail traders with credit limits
    not exceeding Rs.10.00 lakhs
   Credit facilities granted for acquiring premises or furniture / showcases and office
    equipment and for working capital requirements.
   Repayment period is 36 to 84 EMI depending upon the repaying capacity of the
    borrowers.
   Collateral security, 3 rd party guarantee obtained.
   Rate of interest is as decided by the bank from time to time.
   Penal interest eligible for OD accounts.
   Processing charges, administrative charges applicable.
   For backend subsidy loan accounts interest to be charged on loan portion (net of subsidy)
    only.


Business Enterprises: GL 2260



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   Loans extended to individuals and firms managing a business enterprise established
    mainly for the purpose of providing any service other than professional services whose
    original cost price of the equipment use for the purpose of business does not exceed
    Rs.20.00 lakhs without any restrictions on working capital limit.
   Advances for acquisition construction renovation of house-boats and other tourist
    accommodation and distribution of mineral oils.
   Purpose of Loans:- Credit facilities granted for purchasing of necessary equipment,
    repairing or renovating the existing equipment, acquiring or repairing the premises,
    purchasing tools and for working capital requirements.
   Repayment is 36 to 60 EMI depending upon the repayment capacity of the borrowers.
   Collateral security, 3 rd party guarantee obtained.
   Rate of interest is as decided by the bank from time to time.
   Penal interest eligible for OD accounts.
   Processing charges, administrative charges applicable.
   For backend subsidy loan accounts interest to be charged on loan portion (net of subsidy)
    only.

Profession and Self Employed: GL2270

   Loans to professional and self-employed persons include loans for the purpose of
    purchasing equipment, repairing or renovating existing equipment and / or acquiring and
    repairing business premises or for purchasing tools and / or working capital requirements
    to medical practitioners including dentists, Chartered Accountants, Surveyors,
    Construction contractors or Management consultants or to a person trained in any other
    art or craft who holds either a degree or diploma from any institution established, aided or
    recognized by Government or to a person who is considered by the bank as technically
    qualified or skilled in the field in which he is employed.
   Limits upto Rs.10.00 lakhs of which not more than Rs.2.00 lakh for working capital
    requirement, come under priority sector.
   Repayment 36 to 72 EMI with a gestation period not exceeding 3 months.
   Collateral security, 3 rd party guarantee obtained for limits above Rs.50,000.00
   Rate of interest is as decided by the bank from time to time.
   Penal interest eligible for OD accounts.
   Processing charges, administrative charges applicable.
   For backend subsidy loan accounts interest to be charged on loan portion (net of subsidy)
    only.

General Credit Card: GL2390

   This scheme shall cover General Credit needs of existing customers of the branches.
   The objective of the scheme is to provide hassle free credit to our bank customers based
    on assessment of cash flow without insisting on security or end use of the credit.
   Maximum limit is Rs.25000/-
   No guarantee, no collateral security.
   Account will be revived every year and renewed after three years.
   Card holders to be covered under personal accident insurance scheme for Rs.25000/-




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Housing Loans (HL): GL 2280
  Term Loans to salary persons / business men / professional / self employed /
     agriculturists to purchase or construction of house / flats or to meet repairs of the house.
     Quantum of finance depends upon monthly gross income / annual income as per IT
     return / Income certificates duly fixing certain margin on the cost of construction /
     amount of repairs.
  Housing loans upto 20 lakhs irrespective of the location of the house are to be categorized
     under priority sector. The applicant‘s age should not be more than 55 years and not less
     than 18 years.
  For salaried persons maximum loan amount eligible is 48 times gross monthly salary of
     the applicant. For agriculturist maximum loan amount eligible is 3 times net annual
     income. For business persons maximum loan amount eligible is 4 times of the average
     annual income for the last 3 years.
  Repayment period should not exceed 20 years inclusive of moratorium or initial holiday
     period till completion of construction or 18 months from the date of disbursement of 1 st
     installment of the loan whichever is earlier.
  Collateral security, 3rd party guarantee obtained.
  Rate of interest is as decided by the bank from time to time.
  Penal interest eligible for OD accounts.
  Processing charges, administrative charges applicable.

Educational Loans (EL) GL 2300
   Term loans to students to meet the expenses of the studies for
                   Studies in Abroad
                   Studies in India.

   Loans will be sanctioned for studying professional courses like
                    Engineering, Medical,
                    ICWA, CA
                    Courses conducted by IIM, IIT
                    Post graduation, MCA, MBA
                    Phd etc.,
   The applicant must be an Indian, over 16 years of age but less than 30 years and must be
    meritorious student.
   Loan will be considered for Tuition fee Examination fee, project work, books, hostel fee,
    computer etc.,
   Repayment: the loan is repayable in 60 EMI after a gestation period of 1 year after course
    period or 6 months after getting job whichever is earlier. Shorter repayment period may
    also be fixed taking into consideration of the repayment capacity.
   No margin upto Rs4.00lakh
   Collateral security for limits above Rs.4.00 lakhs.
   Rate of interest is as decided by the bank from time to time.
   Penal interest eligible for OD accounts.
   Processing charges, administrative charges applicable.

Self Help Groups (SHG): GL 2301
   Loans sanctioned to SHGs and/ NGOs / B-MASS for onward lending to SHGs / members
      of SHGs / discreet individuals or small groups which are in the process of forming into
      SHGs will be reckoned as priority sector lending and shown in this category.



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   Eligible amount will be arrived basing on the corpus fund / Critical rating index / micro
    credit plan.
   Repayment period should be for a maximum period of 36 months. Depending upon the
    repayment capacity of the group members it may get extended upto 60 months.
   Rate of interest is decided by the bank from time to time.

  SHG : WHILE EXTENDING LOANS TO SHG, TOTAL NUMBER OF GROUPS TO BE
  TAKEN INTO ACCOUNT SEPARATELY
  EX: LOAN TO MASS FEDERATION FOR ONELENDING TO 30 GROUPS: BUT WE
  ARE GIVING LOAN TO MASS. HENCE SYSTEM TAKING NO OF A/C AS ONE BUT
  IT SHOULD TAKE NO AS 30 –

Temporary Overdrafts: GL 2360

   Overdraft allowed for a temporary period in excess of the credit balance in Current
      Accounts with satisfactory transactions in the account for a minimum period of 1 year.
   To be allowed against a request letter duly specifying the Purpose, Amount and period for
      which the TOD is required.
   Allowed for a maximum period of 15 days.
   Not to allow more than 6 times during the year.
Clean Overdrafts to Staff (COD) GL 2370

  Allow to staff with specific sanction from the competent authority. Eligible amount of limit
      will be arrived basing on the gross pay subject to a maximum limit of Rs.3.75 lakhs and
      depends on the cadre of the staff member. (AMT OF LIMIT SUBJECT TO CHANGE)
  Limit is valid for 2 years.
  Salary of the staff member is to be credited to the CODST account every month.
  Rate of interest is to be decided by the bank from time to time.
  The limit is to be reduced by 20% every year during the last five years of retirement.

Secured Overdrafts (SOD) GL 2380

   Overdrafts allowed against securities like deposits of the bank ;
                   Government securities like NSCs, KVPs, LIC policies etc.,


SOD against GOLD:       GL 2380

   SOD will be sanctioned to those customers who borrow amount against gold ornaments
    frequently and repeatedly. The facility can be extended only for non agricultural purpose.
    This loan can be sanctioned to individuals who maintain SB / CD accounts.
   Duration of the limit is 1 year.
   The minimum interest to be paid shall be Rs.1000 per anum.
   Appraising charges are applicable.
   Reappraising to be done once in two years.




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SOD against Real Estate: GL 2380
   This scheme shall cover the working capital needs of valued customers. This is to provide
     adequate credit to the customers based on the assessment of repaying capacity and worth
     of the security.
   Contractors, traders, hotels, restaurants, hospitals, schools & colleges and wine dealers
     are the eligible borrowers.
   Maximum loan amount is Rs.25.00 lakhs.
   Collateral security of immovable property located in urban areas worth atleast 200% of
     the loan amount. Guarantee from 3rd party is obtained.
   Limit is valid for 1 year.
   Rate of interest will be decided by the bank from time to time.

Open Cash Credit (OCC) GL 2410
  Working capital limits against the hypothecation of moveable security.
  Eligible amount of limit will be fixed within the Maximum permissible bank finance
     (MPBF) arrived under various assessment methods.
  Debits will be subject to drawing power.
  Borrower is to maintain certain percentage of margin.
  Collateral security is obtained.

Rushikulya Laghu Udyog Credit card: GL 2340
*To meet the working capital requirements of small business unit,retail traders,village
industries,tiny and small scale industries,and professional and self employed persons for a
msximum limit of Rs2.00lakhs.
*limits arrived basing on 20% of the annual turnover of last 12 months for small business,retail
traders and SSIs,50% of the gross annual income as per IT returns in case of professional and
self employed persons
*Limits are valid for 2 years and renewable on every 2 years on the basis of turn over and
operations.
*Collateral securities:Nil upto limit of Rs0.25lakhs
Above Rs25000/-:100% for urban and semi urban areas and 150% for other areas
*Interest rate applicable as decided by the bank from time to time




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Suit Filed Accounts: GL 2420 (PRIORITY) GL 2450 (Non prior)

   All loan accounts against which suits are filed will be transferred to this head.
   All further transactions will be routed through this account.

Clean Bills Purchase: GLl 2470

   Cheques purchased tendered by customers belonging to savings bank / current accounts
    and borrowers.


Clean Bills Purchased Instant Credit: GL 2471

   Cheques purchased tendered by customers belonging to the savings bank category.
   Cheques upto a maximum of Rs.15000/- can be purchased.

Rushikulya Swarojgar Credit Cards: GL 2350

   To meet working capital or term loan for acquiring fixed assets or both including
    reasonable component for consumption needs upto Rs.25000/- to small businesses.
   Working capital limit to be renewed bi-annually and term loan is repayable in 5 years.
   This scheme covers small artisans to handloom wavers, service sector, fishermen, self
    employed persons,and other micro entrepreneurs
   Card holders are to be covered under group insurance scheme upto an amount of
    Rs.25000/-

Bank Guarantees: GL 2150

   Financial guarantees as well as performance guarantees and differed payment guarantees
    can be issued.
   Minimum cash margin shall be 25%
   Collateral security of property worth not less than 150% is to be obtained for the
    unsecured portion.
   Counter guarantee is to be obtained from the customer on whose behalf the guarantee is
    issued.
   Bank guarantee can be extended and cancelled.




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