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					                                                                        Annexure T - Compliance to Scope




                                                            Scope Criteria




The consultant should provide policies, guidelines, procedures, specifications for authorization, clearing & settlement of domes
                         POS transactions of cards (credit, debit, prepaid) already issued by the banks

1.3 Broad Scope of Work
1.3.1 The consultant shall review the existing strategy plan to provide any additional inputs towards refinement of the busine
strategy and plan for cards (incl. competitive and country benchmarking)

1.3.2 For each of the options stated in the Table A for domestic transaction processing business and card scheme managem
business, the consultant shall

1.3.2.1 Engage in discussions with NPCI team to clarify and finalize the key requirements.
1.3.2.2 The consultant shall work with NPCI team to develop project plan, timelines, stakeholder identification and approa
methodology for each of the phases. The consultant should identify all potential risks associated with the project and suggest
appropriate risk mitigation strategy.
1.3.2.3 Support NPCI team in devising the strategy for fees to be charged, Interchange Rules & Regulation.
1.3.2.4 Support NPCI in identifying benefits for long term sustainability, reward/loyalty structure for each of the products.
1.3.2.5 Develop and document business, operational, governance and technical specifications, rules, policy and procedures bas
on best practices adopted globally for NPCI and members separately.
1.3.2.6 Play anchor role with more of thought leadership with NPCI to get necessary approvals from all the Regulators/k
stakeholders.
1.3.2.7 Convert the rules, specifications, policies and procedures etc. into ‘Statement of Work’ as required by the technical team
NPCI and answering queries /clarification raised by the NPCI technical team.
1.3.2.8 Any assistance required in assessing the Technology, Infrastructure, processes etc.
1.3.2.9 Design of test cases and review the results of UAT to verify and confirm whether it is in line with the suggested rul
specifications, policies and procedures for systems and products.
1.3.2.10 Provide post launch support for a period of 6 months from the date of project go live to ensure rules, specificatio
policies and procedures are applied as specified. For example, the consultant will need to monitor whether interchange rates a
being applied accurately at transaction level. In the event of errors (if any), the consultant should bring it to the attention of NP
and help to resolve the issues.
1.3.2.11 The consultant is expected to recommend the most appropriate path to implement this project.
1.4 Detailed Scope of Work
1.4.1 Review of Existing Plan

1.4.1.1 The consultant should review and provide additional inputs to the existing strategic plan and business plan for domestic
routing business and building own card scheme business.

1.4.1.2 The consultant shall come out with strategy and business plan documentation after reviewing strategic plan and busine
plan.
1.4.1.3 The review plan should cover competitive benchmarking on global scheme operators across products/authentication typ
to understand successful business models and potential key success drivers.
1.4.1.4 The review plan should propose key differentiation strategies based on the benchmarking analysis as well as Indian re
payment market.
1.4.1.5 The consultant should provide business projections, cash flow projections, break even analysis etc. for all the produ
from the perspective of Member Bank’s (Acquirer and Issuer) and NPCI.
1.4.1.6 The consultant should develop business and product level financials to quantify potential costs and benefits for acquir
issuer, network and Third Party Processors (TPP).

1.4.1.7 The consultant should analyze Indian retail payment market to recommend different strategies for International acceptan
of NPCI cards.
1.4.1.8 The consultant should study and recommend appropriate business model retaining value for all key stakeholders wh
will drive activation & usage of cards on Point of Sale terminals.
1.4.1.9 The consultant should identify and recommend distinct potential features which could help to differentiate platform from
competition in terms of improved safety and security of transactions, efficiency of the overall platform as well as any other va
added features for stakeholders.
1.4.1.10 The consultant should identify and recommend distinct potential ways to differentiate ourselves from competition.


1.4.2 Scope for NPCI


 For each of the option mentioned in Table A, following deliverables are expected which have been divided into four bro
categories as described below. The consultant can provide additional inputs which may assist NPCI in finalizing the requirement




1.4.2.1 Business Requirements
1.4.2.1.1 The consultant should develop and document Interchange Pricing Strategy, Policy and Rules in context of objectives
each option in the Table A.

1.4.2.1.2 The consultant should conduct competitive and country benchmarking exercise to understand the best interchan
pricing models and policies followed globally after carefully considering the different Regulatory regimes & business mod
globally.

1.4.2.1.3 The consultant should conduct strategic and financial analysis to support the proposed Interchange strategy for relev
products.
1.4.2.1.4 The consultant should conduct impact analysis of the proposed Interchange strategy on all the stakeholders
1.4.2.1.5 The consultant should conduct analysis to support differentiation of interchange pricing based on various factors (F
example, Card Present/ Card Not Present, m-Commerce, geographic locations, reward/non reward, merchant category, chann
etc.)

1.4.2.1.6 The consultant should identify, analyze and document the Fee strategy (incl. Penalties, enrollment fees and other co
to be charged to Members) plan for each option in the Table A.
1.4.2.1.7 The consultant should propose fee model based on global best practices with customization for Indian market. T
impact on stakeholders (Acquirers, Merchants, Issuers, Card Members) should be analyzed and explained.

1.4.2.1.8 The consultant should conduct analysis to recommend the type of fees and penalties to be included in the process
and scheme management businesses. Rationale of each fee should be analyzed and explained.
1.4.2.1.9 The consultant should analyze each product process to develop Fee Management policy and rules.
1.4.2.1.10 The consultant should define and document product features for various variants of each product (Credit, Debit a
Prepaid Cards) which are relevant for customers. For example, Pin based Debit card could be issued in three variants – Go
Silver and Platinum.

1.4.2.1.11 Based on best practices the consultant should recommend on how to differentiate each variant based on prod
features, benefits, service levels and/or any other value added services such as concierge, airport lounge access, etc.
1.4.2.1.12 The consultant shall suggest strategy and policies for Simplified Dispute Management System.

1.4.2.1.13 The consultant should define and document the potential marketing and consulting support that NPCI could provide
all the stakeholders i.e. Acquirer, Issuers and Merchants. For example: Promotional support, marketing support, busine
analytics, database support, Card Art development, third party consultants, training guides, training sessions, workshops etc.

1.4.2.1.14 The consultant should define and document the potential programs like loyalty programs that can be launched by NP
to improve card awareness, education, activation and usage.
1.4.2.1.15 The consultant should define and document the strategy for positioning NPCI brand successfully in marketplace wh
is dominated by strong players.
1.4.2.1.16 The consultant should define and document the global best practices on Member Bank Enrollment, any non-memb
entity from member risk management and smooth clearing & settlement.

1.4.2.1.17 The consultant should define and document the best practices of Settlement Guarantee Fund should be provided.

1.4.2.1.18 The consultant should define and document the various Merchant Category Codes and governing principles, rules a
regulations to be applied over different Merchant Category Codes.

1.4.2.1.19 The consultant should define and document the appropriate regulatory and management reporting structure (includ
the file formats for various different kinds of MIS (daily / monthly / quarterly etc), Parameters etc.) for Members and NPCI.

1.4.2.1.20 The consultant should define and document the any additional rules and policies for channel wise transactions.
1.4.2.1.21 The consultant shall suggest design of business analytics framework and suggest best practices in business analyt
relevant from the perspective of running card payment network effectively.
1.4.2.1.22 The consultant shall suggest best practice for brand promise.


1.4.2.2 Technical
1.4.2.2.1 The consultant should develop message specifications for all types of transactions (for example online transactio
Settlement and Clearing, Dispute Management Transactions, Fund Settlement etc.)
1.4.2.2.2 The consultant should define and prepare the data exchange formats (including, but not limited to host to h
specifications, file formats etc.) for NPCI.

1.4.2.2.3 The consultant should develop and document the technical guidelines and structure for certification. The consult
should provide the process guidelines and test cases, test scripts for the same.
1.4.2.2.4 The consultant should define and document the various processes and message flows in the system.
1.4.2.2.5 The consultant should define and document the security standards and certifications to ensure that Card sche
systems comply to PCI standards.
1.4.2.2.6 The consultant should define and document the specification for authorization process
1.4.2.2.7 The consultant should define and document the specifications for clearing and settlement process.
1.4.2.2.8 The consultant should define and document the specifications for capturing information to provide loyalty programs a
analytical support to members
1.4.2.2.9 The consultant should define and document the specifications for Dispute Management System
1.4.2.2.10 The consultant should define and document the specifications for card including magnetic stripe, contactless, c
based, NFC based Mobile Payment
1.4.2.2.11 The consultant should define and document the specifications for EMV applications. EMV application to support b
online and offline transactions.
1.4.2.2.12 The consultant should define and document the specifications for EMV authorization, clearing and settlement.
1.4.2.2.13 The consultant should define and document the specifications/standards for contactless and NFC.
1.4.2.2.14 The consultant should define and document the requirements for Interchange Management
1.4.2.2.15 The consultant should define and document the product management
1.4.2.2.16 The consultant should define and document the specifications for Fees and Billing
1.4.2.2.17 The consultant should define and document the rules and frame work for Fraud Management
1.4.2.2.18 The consultant should define and document the all types of reporting with details
1.4.2.2.19 The consultant should define and document the key management for devices, cards and zones.


1.4.2.3 Operations
The consultant should define, develop and document:
1.4.2.3.1 A comprehensive Dispute Management rules and policy based on best global risk and fraud practices for each prod
covering members, merchants and customers should be developed. The policy rules should include guidelines on Chargeba
Representments, Retrieval Requests, and Arbitration. Dispute and Fraud / risk management should be covered separately.
addition, the consultant should conduct a detailed analysis to give rationale behind all the rules and policies. For example, analy
on types of Chargebacks for each product.
1.4.2.3.2 The consultant should recommend potential fraud analytics tools that can be used by NPCI for online and offl
transactions.
1.4.2.3.3 Operational process flow and rules/guidelines for the new member enrolment
1.4.2.3.4 Operational process flow and rules/guidelines for the clearing and settlement process.
1.4.2.3.5 Operational rules/guidelines for various fees and charges (penalty fees etc.) charged from various parties involved.
1.4.2.3.6 Operational rules/guidelines for the loyalty program or promotions designed for all the variants covered under the sco
of this project.
1.4.2.3.7 Operational process flow and develop operational rules/guidelines for Risk Management system for card scheme.
1.4.2.3.8 Accounting system and procedure for various types of financial transactions and audit guidelines.
1.4.2.3.9 Define all card and marks specifications.
1.4.2.3.10 Operational process for preparing and sending Management Information and develop and document the operatio
rules/guidelines for various types of MIS which would be pre-defined in the system. All reports available for access by membe
all reporting to be completed by members (quarterly reporting, risk & fraud reporting etc.)
1.4.2.3.11 Operational process flow and develop rules/guidelines for certification of operators, members, third party processors
vendors for various product and services etc.
1.4.2.3.12 Policy to handle all types of transactions (for example refund, reversal, cash back etc.)
1.4.2.3.13 Global best practices for operations for any card scheme.
1.4.2.3.14 Design operational process flow and rules/regulations for customer services and help desk support for members.
1.4.2.3.15 The complete process flow and requirements for both new member bank and new product enrolment with the ca
scheme.
1.4.2.3.16 The complete process flow, operational rules and guidelines for Interchange Fees.
1.4.2.3.17 The various stand-in parameters (for example type of transaction, maximum amount etc.)
1.4.2.3.18 Robust vendor management policies for card scheme (for example standard of cards)
1.4.2.4 Governance
1.4.2.4.1 The consultant should devise the standard enrollment, certification and governance procedures for third pa
processors, Network Service Providers etc.

1.4.2.4.2 The consultant should frame Membership agreement, Bye-laws and Service Level Agreements (SLAs), with cle
definition of roles & responsibilities of all stakeholders and also frame performance threshold agreements for Member Banks.

1.4.2.4.3 The Consultant should recommend various working groups that should be formed to ensure good governance structu
in the card scheme. The consultant should help NPCI to clearly define the objectives, purpose, roles and responsibilities of ea
working group.
1.4.2.4.4 The consultant should define various types of risks involved in card scheme, covering all the stakeholders (vendo
merchants, card holder, acquirer, issuer etc.). Various types of possible risks (for example operational risks, technology ri
brand risk etc.) should also be included. The consultant should also suggest possible ways to avoid all the risks involved includ
both proactive and reactive risk mitigation strategies available.
1.4.2.4.5 The consultant should define and document global best practices for governance for card scheme & effective running
card network business.
1.4.2.4.6 The consultant should define and document roles and responsibilities of members for all kind of fees/charges to be p
between the stakeholders and/or NPCI
1.4.2.4.7 The consultant should define and document governance principles for risk management
1.4.2.4.8 The consultant should define and document governance principles for product rollout
1.4.2.4.9 The consultant should define and document governance principles for fraud management
1.4.2.4.10 The consultant should define and document governance principles for settlement guarantee process
1.4.2.4.11 The consultant should define and document governance principles for change management


1.4.3 Scope for Members of NPCI - Acquirers
The consultant has to provide the following Manuals/guidelines for members of NPCI
1.4.3.1 The consultant should define and document clearing and settlement guidelines
1.4.3.2 The consultant should define and document certification guidelines
1.4.3.3 The consultant should define and document merchant operating manual
1.4.3.4 The consultant should define and document security manual (key management)
1.4.3.5 The consultant should define and document standards for Devices/POS terminals/Any other channel
1.4.3.6 The consultant should define and document dispute management manual
1.4.3.7 The consultant should define and document acquirer training manual
1.4.3.8 The consultant should define and document merchant training manual
1.4.3.9 The consultant should define and document message specifications for online transactions
1.4.3.10 The consultant should define and document message specifications for clearing and settlement
1.4.3.11 The consultant should define and document message specifications for dispute management
1.4.3.12 The consultant should define and document message specifications for funds settlement
1.4.3.13 The consultant should define and document BIN maintenance process


1.4.4 Scope for Members of NPCI - Issuers
1.4.4.1 The consultant should define and document clearing guidelines
1.4.4.2 The consultant should define and document certification guidelines
1.4.4.3 The consultant should define and document security manual (key management)
1.4.4.4 The consultant should define and document dispute management manual
1.4.4.5 The consultant should define and document message specifications for online transactions
1.4.4.6 The consultant should define and document message specifications for clearing and settlement
1.4.4.7 The consultant should define and document message specifications for dispute management
1.4.4.8 The consultant should define and document message specifications for funds settlement
1.4.4.9 The consultant should define and document product manuals for different types of products.
1.4.4.10 The consultant should define and document card Manual for different types of card variants (example – classic/silv
gold, or platinum)
1.4.4.11 The consultant should define and document card specifications and standards
1.4.4.12 The consultant should define and document cardholder authorization manual
1.4.4.13 The consultant should define and document cardholder Usage Manual (including terms and conditions)
1.4.4.14 The consultant should define and document BIN maintenance process


1.4.5 Scope for Members of NPCI – Members
1.4.5.1 The consultant should define and document settlement guarantee fund guideline
1.4.5.2 The consultant should define and document Risk management guidelines which include Risk management services a
Fraud management services
1.4.5.3 The consultant should define and document loyalty program guidelines
1.4.5.4 The consultant should define and document fee and charges guidelines
1.4.5.5 The consultant should define and document business compliance requirements
1.4.5.6 The consultant should define and document audit procedures
1.4.5.7 The consultant should define and document membership agreements and guidelines
1.4.5.8 The consultant should define and document member enrollment forms and process
1.4.5.9 The consultant should define and document service Level Agreements with members
1.4.5.10 The consultant should define and document release management process
1.4.5.11 The consultant should define and document list of various reports and MIS which includes Operations repo
Management reporting, Risk & Fraud management reports and Regulatory reporting


1.4.6 Support for Implementation
1.4.6.1 The consultant should convert the rules, specifications, policies and procedures etc. into ‘Statement of Work’ as requir
by the technical team of NPCI (including answering any queries raised by the NPCI technical team).
1.4.6.2 The consultant should prepare test cases and review the results of UAT to verify and confirm whether it is in line with
suggested rules, specifications, policies and procedures.
1.4.6.3 The bidder should clearly mention the role and responsibilities of bidder implementation team and define the support a
infrastructure required from NPCI team in the project plan.
     - Compliance to Scope of Work


                                                                                     Consulting work in
                                                                                     NPCI to be carried
                                                                            Name of     out by (Bidder
                                                Work done in the area
                                                                             the Key (B)/Sub-contractor
                                                                             SME(s) (S) / Bidder and Sub-
                                                                                                          Remark
                                                                               who    contractor (BS))
                                                                            executed
                                              (Y/N) and (Bidder (B)/Sub-    the task
                                              contractor (S) / Bidder and             Alongwith names
                                                 Sub-contractor (BS))


 zation, clearing & settlement of domestic
ed by the banks



 puts towards refinement of the business


 business and card scheme management
                                                                              N/A

 .
 stakeholder identification and approach
ssociated with the project and suggest an

 ules & Regulation.
ucture for each of the products.
ations, rules, policy and procedures based

 y approvals from all the Regulators/key

Work’ as required by the technical team of

tc.
her it is in line with the suggested rules,


ct go live to ensure rules, specifications,
to monitor whether interchange rates are
nt should bring it to the attention of NPCI


ent this project.
c plan and business plan for domestic


 ter reviewing strategic plan and business

 tors across products/authentication types

 hmarking analysis as well as Indian retail

ak even analysis etc. for all the products


 potential costs and benefits for acquirer,


ent strategies for International acceptance

ning value for all key stakeholders which


ould help to differentiate platform from the
verall platform as well as any other value


 tiate ourselves from competition.




which have been divided into four broad        N/A
 ssist NPCI in finalizing the requirements.




 licy and Rules in context of objectives for


cise to understand the best interchange
 Regulatory regimes & business models


roposed Interchange strategy for relevant

ategy on all the stakeholders
ge pricing based on various factors (For
non reward, merchant category, channels


 enalties, enrollment fees and other costs
 ith customization for Indian market. The
zed and explained.

 enalties to be included in the processing
plained.
ent policy and rules.
riants of each product (Credit, Debit and
could be issued in three variants – Gold,


 erentiate each variant based on product
 e, airport lounge access, etc.
 gement System.

sulting support that NPCI could provide to
al support, marketing support, business
 s, training sessions, workshops etc.

y programs that can be launched by NPCI


  brand successfully in marketplace which

 mber Bank Enrollment, any non-member


Guarantee Fund should be provided.

Codes and governing principles, rules and


management reporting structure (including
 ers etc.) for Members and NPCI.

 es for channel wise transactions.
ggest best practices in business analytics




actions (for example online transactions,


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structure for certification. The consultant


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luding magnetic stripe, contactless, chip

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ontactless and NFC.
Management

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d Management
ils
 cards and zones.



                                              N/A
 risk and fraud practices for each product
 hould include guidelines on Chargeback,
gement should be covered separately. In
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be used by NPCI for online and offline



ocess.
arged from various parties involved.
 all the variants covered under the scope

agement system for card scheme.
d audit guidelines.


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reports available for access by members,


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nd help desk support for members.
nd new product enrolment with the card

ees.
mount etc.)
f cards)
 governance procedures for third party


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urpose, roles and responsibilities of each


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ys to avoid all the risks involved including

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agement
ollout
nagement
ent guarantee process
 management



                                               N/A




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tlement
f products.
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