Digital Banking, BPR & Card Centre Corporate Office 1st Floor, Devanga Towers, No 35, KG Road, Bengaluru

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1 Digital Banking, BPR & Card Centre Corporate Office 1st Floor, Devanga Towers, No 35, KG Road, Bengaluru Ref. No: LT 4227/CO:CC/Clarifications-RFP-10-POS Date: 22/11/2018 To, All Participating Bidders Sub: - Clarifications/ Modifications for RFP 10 FOR SUPPLY, INSTALLATION, MAINTENANCE & END TO END MANAGEMENT OF POS TERMINALS ON MONTHLY RENTAL MODEL FOR A PERIOD OF 3 YEARS RFP Reference No.: RFP-10/CO:DB-CC/POS/2018 dated 05/11/2018 Sl. No. Clause No., Page No. and RFP Term Bidders Request for following Clarifications and Amendments Banks clarification 1 Tender Document Details: Page No. 2 Pre Bid meeting - 14/11/2018 at 15:30 hours 2 Tender Document Details: Page No. 2 Last Date & Time for submission of Bids in Online Mode - 26/11/2018 up to 16.00hours (Physical submission of Bids will not be accepted) 1. Request rescheduling of the pre-bid meeting to enable participation 1. Bidder requests the Bank to provide at least 10 Working Days post publishing the Corrigendum to submit the RFP responses. 2. We request for the extension till 1st week of December 2018 because this will lead to tie up with OEMs etc 3. Please clarify if Commercial bid has to be submitted after Last Date & Time for submission of Bids in Online Mode - 03/12/2018 up to 16.00hours (Physical submission of Bids will not be accepted) Last Date & Time for submission of Physical Documents (Offline Mode) - 04/12/2018 up to 16:00 hours Page 1 of 35

2 bidder is selected in technical evaluation or it has to be submitted offline on 27th November, We would require more time to be able to prepare our response in a comprehensive format and thus would request extension of the last date of submission of the bid by 4 weeks to 27th December 3 Tender Document Details: Page No. 2 Earnest Money Deposit/Bid Security 75,00,000/- (Rupees Seventy-Five Lakh Only) valid for 6 months from the last date of submission of bids in the form of Bank Guarantee issued by any Scheduled Commercial Bank in India other than Syndicate Bank. (Mode of Submission: Offline) 4 Tender Document Details: Page No. 3 Documents to be uploaded online Point. b All annexure as per RFP on Company s letter head with authorizing person s signature and company seal on all pages. 1. Can we submit earnest money in DD and not BG? 1. Bidder requests the Bank to clarify whether All the Documents to be uploaded online needs authorizing person s signature on all pages and company seal on all pages as it would increase the file size since all documents would have to be scanned and then uploaded. Would only the digitally Either DD or BG accepted Page 2 of 35

3 signed Documents by the Authorized Person suffice for Online Mode of Submission? 5 Information to Bidders: Page No. 9 Bidder has to provide all S/w, H/w (along with Operating system), Application Soft., Utility, Tools etc. required for implementing the solution, herein after referred as SOLUTION, at Bank s Data Centres. The bidder has to provide end-to-end solution & onsite support, help the Bank to maintain DR site of the solution for BCP. 6 Information to Bidders: Page No. 9 Offer shall be submitted only for Premium POS Models, like VeriFone, Ingenico for full schedule of requirements. Offer in part is not acceptable. 1. Does this clause state to implement/host the endto-end at banks data centres? 2. Does the Bank expect the Solution on an OPEX Model or a CAPEX Model? 1. Is the scope only limited to VeriFone &Ingenico or other models which are on PAR with VeriFone &Ingenico can be submitted? 2. By asking for offers for only Verifone and Ingenico will restrict the bidders that will be able to participate. There are other premium POS models with better features and duly tried and tested in the Indian market. Bank should accept for offers for any model meeting the required criteria. 3. Standard industry practice is to have two OEMs. Would request one of the renowned 1. The solution shall be hosted on Vendor s DC & DR, kept in India. If mandated by the regulatory, the solution may be required to be hosted at Bank s Data Centre, in future. 2. Opex model. The clause be read as The terminal should be of premium model and comply with all the technical specifications of RFP and installed in at least one PSU Bank. Page 3 of 35

4 brand and another brand compliant to PADSS and PCIDSS, as verifone and ingenico do not support customization requirements of the bank. 7 Clause No. 5, Page No. 11 PAYMENT TERMS: The installation report is to be maintained in 3 copies (in original) and provided to the Bank along with the monthly invoice, as detailed under: 1. One copy to merchant 2. One copy to the Corporate Office: Card Centre along with the monthly invoice. 3. One copy is to be retained by the bidder. 8 Clause No. 7, Page No. 12 WARRANTY AND AMC/ATS The solution along with POS Terminal should be owned by the bidder. Hence, the necessary guarantee, warranty, insurance, AMC, ATS etc. as the case may be (as applicable) should be borne by the bidder. Bank will only reimburse the monthly rental for the complete solution as per the terms of this RFP. 9 Clause No. 16, Page No. 21 ROLE OF THE BANK: a) To Provide Acquiring BIN of NPCI, VISA, ICA of MasterCard and INN of Maestro. b) Identification/Selection of merchants and providing merchant information for on-boarding. c) To finalize the format of the settlement file and Voucher s to be posted on daily basis 1. For Remote Installation, there will be no hardcopy of installation report. We employ latest digital methods to proof of installation by accepting signature of ME on the mpos App. Trust the bank will accept the same as is a proven method now. 1. Bidder requests the Bank to specify all the Warranty terms for this RFP. 1. As per the Annexure-H, AMEX and other networks are mentioned in scope but the RFP term doesn't cover the AMEX and other network names. 2. AMEX has two ways of acquiring provided to banks, Either hard copy or soft copy proving that the POS terminal is installed should be provided to Bank. It is clarified that All the necessary guarantee, warranty, insurance, AMC, ATS etc. as the case may be for POS terminals (as applicable) should be borne by the bidder. AMEX acquiring will be partial and only for specific merchants. Page 4 of 35

5 (partial and full acquiring). Please clarify the proposed approach. 10 Clause No. 19, Page No. 23 LIQUIDATED DAMAGES: If the selected Bidder fails to complete the due performance of the contract in accordance with the specifications, conditions & timelines agreed, the Bank reserves the right to recover penalty/ liquidated damages at the rate of Rs. 25,000/- (Rupees Twenty five thousand only) per day as Liquidated Damages for non-performance/delayed performance. 11 Clause No. 20, Page No. 24 ADDITIONAL PENALTY 12 Clause No. 20, Page No. 24 ADDITIONAL PENALTY - Penalty for Delay in Commencement of operations: For any delay in commencement of operations beyond a period of 12 weeks from the date of acceptance of the Purchase Order, a penalty of Rs.10,000/- (Rupees Ten thousand only) per day will be charged from the successful bidder subject to 10% of project cost. In case the selected bidder/vendor fails to operationalise the operations within 10 weeks from the date of issuing of the Purchase Order, the Bank will have the option to cancel the Purchase Order and the Vendor shall forfeit the Bid Security and he shall be 1. We request the Bank to reduce the penalty to Rs.500/ per day. 1. Bidder requests the Bank that all penalties mentioned in RFP to be capped at 10% of monthly billing. 1. We request the Bank to reduce the penalty to Rs.500/ per day 2. For a project of this nature, we would request for more reasonable time lines for implementation of the project. Thus it is requested that the implementation timeline be extended to 20 weeks. The clause be read as follows : For any delay in commencement of operations beyond a period of 15 weeks from the date of acceptance of the Purchase Order, a penalty of Rs.10,000/- (Rupees Ten thousand only) per day will be charged from the successful bidder subject to 10% of project cost. In case the selected bidder/vendor fails to operationalise the operations Page 5 of 35

6 barred from participating in any future bids. 13 Clause No. 20, Page No. 24 ADDITIONAL PENALTY - Delay in Installation/Preventive Maintenance of POS/EDC terminals: Point. b The Selected bidder shall be charged penalty for not adhering to the time schedule of delivery/installation/make terminal operational at the rate of Rs.500/- (+ GST) per day per POS/EDC terminal till the date of installation. 1. We request the Bank to reduce the penalty to Rs.100/ per day per terminal within 15 weeks from the date of issuing of the Purchase Order, the Bank will have the option to cancel the Purchase Order and the Vendor shall forfeit the Bid Security and he shall be barred from participating in any future bids. Penalties at the rate of Rs.300/- per day per POS/EDC will be levied on selected bidder in case the POS/EDC is down for more than 24 hours in metro and urban areas and more than 48 hours in Semi-urban/Rural areas. However, if the vendor becomes eligible for Penalty for continuous three months or three times in a year (date of live operations), then the penalty will be revised to Rs.500/- per day from that Invoice bill payment month Page 6 of 35

7 14 Clause No. 20, Page No. 24 ADDITIONAL PENALTY - Delay in Installation/Preventive Maintenance of POS/EDC terminals: Point. c Penalty for not conducting Preventive Maintenance (PM) and Submitting Relevant Report on Quarterly Basis: Rs 1000 (+GST) per terminal per quarter will be charged. 1. Consider waiving the penalty 2. We request the Bank to reduce the penalty to Rs.100/ per terminal 15 Clause No. 20, Page No. 24 ADDITIONAL PENALTY - UPTIME and PENALTY For service related TAT, there is no exemption of Sunday and National Holidays. 16 Clause No. 20, Page No. 24 ADDITIONAL PENALTY - UPTIME and PENALTY Area Metro and Urban Semi-Urban and Rural Turnaround Time for attending to service calls and repair of faulty POS/EDC terminal after lodging complaint by the Merchant/Bank 24 hours 48 hours 1. Bidder requests the Bank to exempt Sunday s and National Holidays for service related TAT. 1. Bidder requests the Bank to modify the TAT as below: Area Metro and Urban Semi- Urban and Turnaround Time for attending to service calls and repair of faulty POS/EDC terminal after lodging complaint by the Merchant/Bank 2 Working days 4 Working days Page 7 of 35

8 17 Clause No. 20, Page No. 25 ADDITIONAL PENALTY - UPTIME and PENALTY Bidder is required to maintain uptime of 99.95% for POS/EDC Infrastructure failing which penalties shall be levied as per below clauses: a. Penalties at the rate of Rs.500/-per day per POS/EDC will be levied on selected bidder in case the POS/EDC is down for more than 24 hours in metro and urban areas and more than 48 hours in Semi-urban/Rural areas. Rural Bidder also requests the Bank that Repairs should be categorised as separate activity not to be clubbed under breakdown calls. 2. We request the Bank to exclude this TAT for Jammu & Kashmir and North East 1. Request the bank to relax the uptime requirement to 99% since the SLA of 99.95% is not practical due to field visits and diversified geographies, TAT can t be applicable to North East, Sate of J&K and Port Blair. 2. Penalty had been increased to five fold, consider revising to 100 rs per day. Also consider revising the penalty clause that overall penalty amount willnot exceed more than 10% of the monthly invoice 3. This means that Bank is not going to make the payment for entire month and on top of that will be levying a penalty. Which will be a double whammy for the The TAT for installation and service calls at merchants in Kashmir and North Eastern States will be 8 days 1. For Point No 2,3 & 4 Clause No. 20, Page No. 25 TO BE READ as a. Penalties at the rate of Rs.300/-per day per POS/EDC will be levied on selected bidder in case the POS/EDC is down for more than 24 hours in metro and urban areas and more than 48 hours in Semi-urban/Rural areas. Page 8 of 35

9 18 Clause No. 20, Page No. 25 ADDITIONAL PENALTY - UPTIME and PENALTY Point. c In case of loss to the Bank due to delay in uploading settlement files, non-re-presentment of chargeback, prearbitration, arbitration, non-staging of files, non-updating of BINs, penalties levied by VISA/MasterCard/NPCI and Regulatory Authorities attributable to vendor, the vendor has to compensate the Bank for all such losses at actuals with Bank s MCLR rate for one year + 5% for the period till the date of reimbursement of the penalty from the bidder 19 Clause No. 20, Page No. 25 ADDITIONAL PENALTY - UPTIME and PENALTY Point. d Preventive maintenance: The Selected bidder shall conduct Preventive Maintenance including but not limited to Merchant Training (wherever needed) inspection, testing, satisfactory execution of all diagnostics, cleaning and removal of dust and dirt from the interior and exterior of the equipment, and necessary repair of the equipment once in 3 months till the expiry of the contract, on a day and time suitable to the Merchant. 20 Clause No. 20, Page No. 25 ADDITIONAL PENALTY - PENALTY MERCHANT SOURCING (PMS): Vendor amount. 4. We request the Bank to reduce the penalty to Rs.100/ per day per terminal. 1. Request bank to consider to remove the interest part 1. Can the preventive maintenance of terminals be scheduled for once in 6 months as Remote diagnostic tools can be used to monitor the terminal upkeep? 2. The selected bidder shall conduct maintenance at a day and time suitable to the merchant as needed. 1. As per clause 16. point b. - Identification and selection of merchant has been quoted as Bank's responsibility. The targets will be given by the Bank based on mutual Page 9 of 35

10 The targets for POS/EDC deployment will be given by the Bank for each quarter which should be mandatorily achieved by the bidder. Non-achievement of the target as set by the Bank will be considered as non-performance and penalty will be imposed as per the details given under: Applicable Penalty for MS = Number of not Achieved Targets for relevant quarter * Price Quoted for Merchant Sourcing under Optional Item/2 21 Clause No. 28, Page No. 30 TERMS AND CONDITIONS FOR THE PROPOSAL Liability on account of any System Compromise: Vendor shall immediately inform the Bank with full details of any security lapse / compromise for taking necessary steps against misuse on account of such occurrence and also take steps to mitigate the risk. Vendor shall be fully liable in case of any Security lapses / Compromise, any liability arising in such cases shall be reimbursed by the vendor to the Bank. 22 ANNEXURE-A :: OTHER IMPORTANT TERMS AND CONDITIONS Page No. 31, Point No. 2 INSURANCE: While delay in implementation can be a valid case for penalty for the vendor, not meeting POS target in our opinion should not attract penalty for the vendor since the bank has the responsibility to share the leads. Please clarify as these two clauses seem to be contradictory. 2. Consider waiving the penalty as merchant sourcing also involves the bank in terms of commercials, account opening etc. 1. The responsibility shall be limited to implementing reasonable security measure in its system 1. We request the Bank to make the insurance period for 30 days instead of 4 months agreement and will not be less than 5000 applicants approved and on boarded by the Bank. Non-achievement of the target as set by the Bank will be considered as non-performance and penalty will be imposed Page 10 of 35

11 The insurance shall be for an amount equal to 110% of the CIF or CIP value of the goods delivered at the final destination, on All Risks ( fire, burglary, SRCC, natural calamities such as earth quake, flood etc.) basis including War Risks and Strike clauses valid for a period of not less than 4 months from the date of delivery including transit risk and storage cum erection risk. Insurance policy can be in the name of Bank. 23 ANNEXURE-A :: OTHER IMPORTANT TERMS AND CONDITIONS Page No. 32, Point No. 4.ii BIDDER S OBLIGATIONS: The Bidder s representative & local office at Bengaluru will be the contact point for the Bank and all the authentic status of Delivery and Installation should be made available in writing at least twice in a week. 24 ANNEXURE-A :: OTHER IMPORTANT TERMS AND CONDITIONS Page No. 32, Point No. 5 ORDER CANCELLATION / TERMINATION OF CONTRACT: The Bank, without prejudice to any other remedy for breach of contract, by giving 30 days written notice of default sent to the Vendor and if the Vendor fails to cure the default within the notice period, may terminate this Contract in whole or in part: 1. The head office or Ops department of the bidder may not be based in Bangalore. The Contact point for Bank should be a person assigned from the Ops department at Bidders Head office who will be able to share the required information as requested by bank irrespective they are located in Bangalore or not. 1. The Bank, without prejudice to any other remedy for breach of contract, by giving 60 days written notice of default sent to the Vendor and if the Vendor fails to cure the default within the notice period, may terminate this Contract in whole or in part: Page 11 of 35

12 25 ANNEXURE-A :: OTHER IMPORTANT TERMS AND CONDITIONS Page No. 32, Point No. 5.iii ORDER CANCELLATION / TERMINATION OF CONTRACT: If the Vendor is not providing after sales and maintenance services and the calls are not attended for three or more occasions, the Bank is at liberty to terminate the contract by giving 30 days notice. 26 ANNEXURE-A :: OTHER IMPORTANT TERMS AND CONDITIONS Page No. 35, Point No. 8.iii LIABILITY OF THE SELECTED BIDDER: Such liability of the Selected Bidder will be restricted to the actual amount of the Contract. 27 ANNEXURE E :: MANUFACTURERS AUTHORISATION FORM FOR H/W & S/W Page No. 45 We hereby extend our full onsite guarantee, onsite warranty support as per Clauses of Contract for the goods and services offered for supply by the above organization against this RFP and we will provide service support for five years to the Bidder. 1. We request the Bank to elaborate on the same 1. The bidder's aggregate liability in connection with obligation, under taken as part of this project regardless of the form or nature of the action giving rise to such liability, shall be limited to the Annual Value of Contract of the project. 1. It mentioned that the service support will be of 5 years, when the contract period is for 3years The clause to be read as Page No. 45 We hereby extend our full onsite guarantee, onsite warranty support as per Clauses of Contract for the goods and services offered for supply by the above organization against this RFP and we will provide service support for three years to the Bidder. Page 12 of 35

13 28 ANNEXURE-H :: SCOPE OF WORK Page No ANNEXURE-H :: SCOPE OF WORK Page No. 48 The scope of RFP involves deployment of EDC/POS Terminals (PSTN, GPRS, In- store/pc POS or acquiring integration of Digi-POS and M-POS) etc. to be installed at Merchant Locations for acceptance of all types of cards, issued in association with VISA, MasterCard & NPCI and also AMEX & any other Network Service Provider in future, if required by merchant, etc., by the bidder and routing the transactions to Service Provider Switch and then to the appropriate Network switch viz., VISA or MasterCard or NPCI or AMEX or through any other network in future as the case may be. 30 ANNEXURE-H :: SCOPE OF WORK Page No. 48 The bidder has to deploy the EDC/POS Machines at his own cost and maintain them and also offer services including provision, deployment, installation of the insured EDC/POS terminals, terminal driving, switching, Merchant help desk, procuring and managing consumables, marketing and sourcing for enrolment of Merchants on Bank s discretion, field services, transaction settlement, reconciliation of EDC/POS Transactions and handling chargeback/pre arbitration/arbitration issues. 1. Please clarify if the scope of the RFP includes only new Merchant installations or includes conversion of existing base as well. 1. Is integration to other schemes like American express & China Union Pay is mandatory to participate in the RFP? 1. We request the Bank to undertake Marketing at his own since all merchants are current account holder of Bank. We as a vendor do not have any direct connection to any of the CASA holder of the Bank. RFP is for new installations Page 13 of 35

14 31 ANNEXURE-H :: SCOPE OF WORK Page No. 48, Point No. 4 POS/EDC Terminals must have the facility of LCD screen to display the amount of transaction before entering the PIN. The Terminal should be able to display the QR code for scan and pay and read the QR code from customer mobile device to initiate the payment. 32 ANNEXURE-H :: SCOPE OF WORK Page No. 48, Point No. 9 The POS/EDC terminals supplied for fuel merchants should be mandatorily PESO (Petroleum and Explosives Safety Organisation) certified/ Compliant. 33 ANNEXURE-H :: SCOPE OF WORK Page No. 48, Point No. 11 The POS/EDC terminals should be AEPS compliant for Aadhar based payment system. 34 ANNEXURE-H :: SCOPE OF WORK Page No. 49, Point No. 20 Financial liability, if any, arising on account of improper handling of charge back/pre-arbitration/arbitration shall be 1. In case of MPOS, Smartphone/Tablet should be able to read the QR Code from Customer mobile device to initiate the payment 1. Devices should have capability to connect via Wi- Fi for use near Fuel Pumps, which does not require to fulfil PESO compliance requirement 1. Bidder requests the Bank to provide detailed information on the number or the percentage of AEPS compliant POS/EDC terminals required for this RFP, since it would have a direct impact on the costing/commercials. 2. There is separate commercial for Addhar base terminal. Will Bank pay separately for the Addhar Base H/w 1. Is the bank going to own and bear the Risk of the merchants? Or expects the bidder to own Risk and Physical QR shall be supplied by the bidder at no additional cost, if the Bank decides at a later date. Revised Commercial Bid format for e-auction enclosed If the merchant is sourced by the Bidder, then the financial liability for chargeback losses of missing merchant or merchant fault to be Page 14 of 35

15 borne by the bidder and all other activities required to be done in case of charge backs shall also be taken care of by the bidder. Bidder shall be responsible for conducting activities under all Network Dispute Resolution like charge back end to end Management, re-presentment, fulfilling Request for copy, retrieval of charge-slips etc, file uploads and download. However bank shall extend all support as and when desired by the bidder.bidder must ensure that transactions are strictly in line with RBI/ MOF/ IBA/ NPCI/ MasterCard/ VISA guidelines if otherwise directed by the Bank. 35 ANNEXURE-H :: SCOPE OF WORK Page No. 49, Point No. 21 The EDC/POS terminals deployed by the bidder should be capable of providing value-added services through the terminals e.g. DCC (Dynamic Currency Conversion), Mobile Recharge, Bill Payment, E-ticketing, (as per Govt. Guidelines), etc., Multi Bank EMI facility as and when required by the Bank. 36 ANNEXURE-H :: SCOPE OF WORK Page No. 49, Point No. 22 Bidder should deliver any significant changes like Aadhaar based authentication on POS/EDC Machines as an additional factor of authentication as per RBI/UIDAI mandate or any other major up gradation is required to be made in POS/EDC infrastructure to comply with MOF/ RBI/IBA directives in future during the contract period. 37 ANNEXURE-H :: SCOPE OF WORK Page No. 50, Point No. 26 Any new report required by the bank is to be designed and to merchant? 1. E-ticket/Bill pays / Mobile recharges Will be additional customizations. We can enable this with a cost of dev as and when it comes 1. Please clarify Bank will pay for the additional customization 1. The TAT of delivery and continuation of report will depend on scope of report and may not be available in borne by the vendor. If the merchant is sourced by the Bank, then the financial liability will be borne by Bank. Revised Commercial Bid format for e-auction enclosed Can be discussed with Page 15 of 35

16 be provided by the bidder without any additional cost within 3 working days and henceforth those reports are to be a part of regular MIS reports. 38 ANNEXURE-H :: SCOPE OF WORK Page No. 50, Point No. 25 The solution should provide rules based FRM (Fraud Risk Management) Tool and generate the exception reports as required by the Bank and also take appropriate preventive action as approved by the Bank. 39 ANNEXURE-H :: SCOPE OF WORK Page No. 50, Point No. 27 The terminal should be capable of switching over to Wi-Fi Network, whenever network issue is there, the terminal should work on Bluetooth and hot-spot connectivity. 40 ANNEXURE-H :: SCOPE OF WORK Page No. 50, Point No working days. Hence, Bidder requests the Bank to decide upon the TAT s for such reports based on each report requirement based on mutually acceptable timelines. 2. New reports on 3 days We will like to propose DWH solution to bank, where we will give them full DWH and they can build / extract reports as per their need 1. Similarly, for Fraud management perspective, is only Tool deployment in scope or complete managed services? If managed services would require scope of Risk management and projected spends (vol. and transactions) per month for the 3 years 1. Bank please specify how many terminal break up of requirement 1. Bank to clarify such integrations are complex and successful bidder It is clarified as - FRM tool to be deployed and alert reports to be shared to Bank. Revised Commercial Bid format for e-auction enclosed Page No. 50, Point No. 31 To be read as Page 16 of 35

17 Bidder should also provide switching of transactions acquired using Personal Computer linked POS (PC-POS or In-store POS) as per TAT and any such type of medium of card acquisition. time consuming. Will Bank pay for the customization or can bidder charge to the merchant for the customizations Bidder should also provide switching of transactions acquired using Personal Computer linked POS (PC-POS or In-store POS) as per TAT and any such type of medium of card acquisition and integration cost will be borne by merchant. 41 ANNEXURE-H :: SCOPE OF WORK Page No. 51, Point No. 36 The Bidder shall provide the details of the product supplied like Make, Model No., Distinctive Serial No., Date of Manufacturing, Date of Purchase along with the Cost for each POS/EDC terminals installed. 42 ANNEXURE-H :: SCOPE OF WORK Page No. 51, Point No. 39 Audit: The bank may conduct the audit of POS acquiring solution or related infrastructure by internal or external auditor/agencies appointed by the Bank. The Bidder should provide full co-operation to the Bank s Audit team during Audit. The audit may also be done for Bidder s Premises/Infrastructure inclusive of Data Centre and Data Recovery Centre and related third-party solution/infrastructure. Any audit observation should be immediately complied by the Bidder. All bidder s records with respect to any matters covered under the scope of this RFP shall be made available to the 1. This clause is not applicable since the RFP is for Supply, Installation, Maintenance& End to End Management of PoS Terminals on Monthly Rental Model. Request the bank to please remove this clause. 1. We assume Bank will provide reasonable notice and purpose of the audit so relevant team members can be involved. TO BE DISCUSSED WITH SUCCESSFUL BIDDER Page 17 of 35

18 Bank or its designees at any time on demand and as often as the Bank deems necessary to audit, examine, and make excerpts or transcripts of all relevant data. Said records are subject to examination. The scope of such audit may be extended to the requirements of statutory and regulatory authorities. Bank may also conduct surprise visit/audit at Vendor s Business premises, Data Centre, Disaster Recovery Site and/or entire solution hosted at bidders premises related to proposed solution under this RFP. 43 ANNEXURE-H :: SCOPE OF WORK Page No. 51, Point No. 40 The Bidder has to provide a Contact Centre interface for integration with Bank s Contact Centre through interface/api/covering the QRCF (Queries, Requests, Complaints and Feedback) for the solution information and issues resolution. Customer Service Agents at Contact Centre should be provided with a web based portal interface with required features/functionality to enable them to resolve merchant s issues/problems over phone call and forward the unresolved complaints to bidders support centre/solution with real-time updating of status. 44 ANNEXURE-H :: SCOPE OF WORK Page No. 51, Point No. 40 Development and Sharing of API s. 1. Bidder requests the Bank to provide details on whether the bank is requesting for a dedicated contact service centre and the types of queries to be handled in this process. Bidder can provide web portal access to BANK for view Merchant queries related to EDC.Also daily reports on issues reported by merchants,pending and completed Customer service agents are equipped with WEB based portals to support Merchant queries on EDC. 1. Bank to share the API details immediately so integration cost can be budgeted. RFP TERM CLEARLY STATES THE FOLLOWING The bidder to provide interface to the Banks contact centre with web based access. One important integration will be API to Banks Switch for On us transactions Page 18 of 35

19 All the APIs/Interface that is required for integrating the POS Acquiring Solution with the Bank s System or the Third Party Solution of the Bank is to be provided by the bidder without any additional cost. Likewise, any API provided by the Bank for the purpose of integrating with the POS Acquiring Solution from the Bank system is to be accepted and consumed by the Bidder s for integration with POS Acquiring Solution without any additional cost. 45 ANNEXURE-I :: FUNCTIONAL/ TECHNICAL REQUIREMENTS COMPLIANCE TABLE Page No. 53 Referral handling, (Force transactions) - Referral is used by issuer, if cardholder activity is suspicious. Cardholder should then call issuer bank, authenticate himself to get referral Code and perform transactions. 46 ANNEXURE-I :: FUNCTIONAL/ TECHNICAL REQUIREMENTS COMPLIANCE TABLE Page No. 53 Edit Password - Change password option. 1. To complete the force transaction, we need to support 'offline transaction' on the POS terminal. Is bank planning to support offline transaction in this case? 2. Request bank to help us with their requirement / expectation, as in our operational scenario and keeping transaction/terminal security in mind it is not made available to the merchant 3. Is the edit/change password requested for POS terminal? Yes. Yes for POS terminal 47 ANNEXURE-I :: FUNCTIONAL/ TECHNICAL REQUIREMENTS COMPLIANCE TABLE Page No. 53 Edit Terminal ID - Password protected 1. Request bank to help us with their requirement / expectation, as in our operational scenario and yes Page 19 of 35

20 48 ANNEXURE-I :: FUNCTIONAL/ TECHNICAL REQUIREMENTS COMPLIANCE TABLE Page No. 53 Edit Date - To change terminal s date/time manually. 49 ANNEXURE-I :: FUNCTIONAL/ TECHNICAL REQUIREMENTS COMPLIANCE TABLE Page No. 53 Multi-Application - Ability to run multiple applications like Payments, loyalty, Gift card, Diners card, American Express cards etc. without affecting other applications and data. Multi-bank settlement options through PLUTOs supported application keeping transaction/terminal security in mind it is not made available to the merchant 1. Request bank to help us with their requirement / expectation, as in our operational scenario and keeping transaction/terminal security in mind it is not made available to the merchant 2. Is the requirement to change/edit date/time on POS terminal, typically this is not allowed on the terminals. 1. Why is multi-bank settlement options required through PLUTOs supported application? 2. Please clarify and provide details on the PLUTOs application stated in the requirements. 50 ANNEXURE-I :: FUNCTIONAL/ TECHNICAL 1. Explanation in details is required To be read as Edit Date - To change terminal s date/time manually by Bank. ( not to be provided to merchant) To be read as Page No. 53 Multi-Application - Capability to run multiple applications like Payments, loyalty, Gift card, Diners card, American Express cards etc. without affecting other applications and data. Multibank settlement options through PLUTOs supported application, if desired by the Bank Page 20 of 35

21 REQUIREMENTS COMPLIANCE TABLE Page No. 53 Multi- Merchant - Ability to support multiple Merchant category codes application in the same POS and multiple Application in the same MCC or Merchant. This is mostly used for supporting cash at POS and under EMI options. 51 ANNEXURE-I :: FUNCTIONAL/ TECHNICAL REQUIREMENTS COMPLIANCE TABLE Terminal Capabilities Page No. 54, Point No. 9 Capability of providing Dynamic Currency conversion (DCC)on the terminals. 52 ANNEXURE-I :: FUNCTIONAL/ TECHNICAL REQUIREMENTS COMPLIANCE TABLE Terminal Capabilities Page No. 54, Point No. 13 Financial liability, if any, arising on account of improper handling of charge back/pre-arbitration/arbitration shall be borne by the bidder, if otherwise in order and all other activities required to be done in case of charge backs shall also be taken care of by the bidder. Bidder shall be responsible for conducting activities under all Network Dispute Resolution like charge back end to end Management, re-presentment, fulfilling Request for copy, retrieval of charge-slips etc, file uploads and download. However bank shall extend all support as and when desired by the bidder 1. Bidder requests the Bank to provide clarity on the Functional/Technical requirement of having capability in managing DCC business. So we assume that the functionality & experience pertaining to India shall only be considered. 1. Bidder requests the Bank to remove the Financial Liability clause related to improper handling of charge back/pre arbitration/arbitration as the Bidder would be providing only Processing Services. To be read as Page No. 54, Point No. 9 Capability of providing Dynamic Currency conversion (DCC)on the terminals only for specific merchants. DCC to be provided with opt out option to merchants If the merchant is sourced by the Bidder, then the financial liability for chargeback losses of missing merchant or merchant fault to be borne by the vendor. If the merchant is sourced by the Bank, then the financial liability will be borne by Bank. Page 21 of 35

22 .Bidder must ensure that there exists only card present transactions that are strictly in line with RBI/ MOF/ IBA/ NPCI/ MasterCard/ VISA guidelines if otherwise directed by the Bank. 53 ANNEXURE-K::RULES FOR REVERSE AUCTION Page No. 62 Commercial Bid format for e-auction Optional Items - Merchant Sourcing 54 ANNEXURE-K::RULES FOR REVERSE AUCTION Page No. 62 NOTE : Point No. i Bidder should quote for Monthly Rental Fees for POS Terminals and One-time Cost for Merchant Sourcing. 55 ANNEXURE-K::RULES FOR REVERSE AUCTION Page No. 63 NOTE : Point No. xiv All the technically responsive bidders should participate and quote for all items including optional items during the Online Sealed Bid. 56 ANNEXURE-S-CREDENTIAL LETTER FROM SCHEDULED COMM. BANK(S)/PSBS Page No Would the Bank be considering the Total (Mandatory items) as mentioned in the Commercial Bid Format for arriving at the TCO? or would it also include the Optional items-merchant Sourcing for arriving the TCO for reverse auction? Kindly confirm. 1. Please clarify if this merchant sourcing is on boarding merchants for POS or sourcing merchant CA for the bank? 1. Merchant Sourcing is marked as Optional, but we understand that we need to quote a commercial for the same as part of TCO mandatorily. However, bank may choose to take this service or not. Pls clarify if our understanding is correct. 1. Bidder requests the Bank to provide clarity on the requirement for Annexure S- Merchant Sourcing is marked as Optional, but Bidder needs to quote a commercial for the same as part of TCO mandatorily. However, bank may decide to consider this service or not. YES Annexure S-Credential Letter for Implementation of END TO END POS ACQURING Page 22 of 35

23 Sub: Implementation of Loyalty Rewards Program Credential Letter for Implementation of Loyalty Rewards Program. BUSINESS- (revised format enclosed) 57 ANNEXURE-T :: ELIGIBILITY CRITERIA Page No. 85, Point No. 1 Bidder should be a registered company in India under Companies Act Bidder should have been in the POS acquiring business at least for the immediate last 3 financial years. 58 ANNEXURE-T :: ELIGIBILITY CRITERIA Page No. 85, Point No. 2 The Bidder should have an average Turnover of at least Rs. 150 Crores during the last 3 Financial Years ( , & ). 1. Kindly relax the experience required to last 1 financial year 1. if any possibility for keeping Rs 100 Cr turnover for the last 3 months or cumulative of RS 350 Cr for the last 3 fy 2. Requiring a high turnover will restrict the number of participants. Companies with great solutions but with lower turnover will not be able to participate. The Bidder should have an average Turnover of at least Rs. 38 Crores during the last 3 Financial Years ( , & ). ANNEXURE R to be read as Details of END TO END POS ACQUIRING BUSINESS Implementation services to meet eligibility criteria TO BE READ AS The Bidder should have an average Turnover of at least Rs. 100 Crores during the last 3 Financial Years ( , & Page 23 of 35

24 59 ANNEXURE-T :: ELIGIBILITY CRITERIA Page No. 85, Point No. 3 The Bidder should be a profit making company and should have earned Net profit in at least two out three of preceding Financial Years ( , & ) and Operating profit in the other Financial Year as per the audited Financial Statements and should have a positive Net Worth of at least Rs. 75 Crore. 60 ANNEXURE-T :: ELIGIBILITY CRITERIA Page No. 85, Point No. 4 The bidder should have experience of Working with at least three scheduled commercial banks for more than two 1. Bidder doesn t have the net profit but do have the net worth of 15 Cr+ net worth. 2. Requiring a high positive networth does not allow other profit making companies with a comparatively lower positive networth to participate in the RFP. Thus, the Bidder should be a profit making company and should have earned Net profit in at least two out three of preceding Financial Years ( , & ) and should have currently a positive Net Worth of at least Rs. 9 Crore. 3. We request Bank to amend the clause so as to make us eligible to participate. The bidder should be having operating profit and positive networth in excess of 75 crores in last 3 Financial Year's 1. Request the bank to reduce the number of banks to 1 scheduled commercial bank and 1 PSU Bank under Page 24 of 35

25 years in India in PSTN/GPRS EDC/POS terminal. In store and MPOS Terminal deployment, processing, operations and management thereof in terms of NPCI/VISA/MasterCard guidelines. The bidder should also have the capability to provide the above services for AMEX. The bidder should also have the capability to provide DCC (Dynamic Currency Convertor) facility. implementation. Kindly relax this clause (The bidder should also have the capability to provide DCC(Dynamic Currency Converter) facility) 2. Bidder doesn t have DCC facility as of now, but we are in the development stages. Also we are not offering PSTN terminals in the market. We do have the MPOS and GPRS paper terminals. 3. Trust experience can also include working with Co- Operative Banks and other banks on various engagement models, besides White Label. Is DCC a mandatory requirement from the start or can it be availed by bank when needed. For 2 & 3. DCC to be provided with opt out option to merchants. 61 ANNEXURE-T :: ELIGIBILITY CRITERIA Page No. 85, Point No. 5 The Bidder should have installed and be maintaining at least POS/EDC Terminals on Pan India basis. 1. Please relax it to 800 terminals 2. Does 30,000 POS/EDC terminals also include mpos terminals? Since RFP includes mpos, Page 25 of 35

26 62 ANNEXURE-T :: ELIGIBILITY CRITERIA Page No. 86, Point No. 7 In terms of RBI circular/2017/-18/153 DPSS.CO.OD.No.2785/ / dated 06/04/2018 Bidder should comply to the following: I. System providers shall ensure that the entire data relating to payment systems operated by them are stored in a system only in India. This data should include the full end-to-end transaction details/information collected/carried/ processed as part of the message /payment instruction. II. System providers shall submit the System Audit Report (SAR). The audit should be conducted by CERT-IN empanelled auditors certifying completion of activity (i) above. The SAR duly approved by the board of the system providers should be submitted to RBI not later than December 31, ANNEXURE-T :: ELIGIBILITY CRITERIA Page No. 86, Point No. 9 The bidder should have the capacity to Provide end-to-end experience in installing and maintaining mpos terminals should also count. 3. We request Bank to consider installation and maintenance on experience of minimum 1 Lakh terminals to get experienced and qualified participation 1. Since RBI has given time till Dec 31st, can we submit the SAR report at a later date (not on 26th Nov), as we might need some more time to complete the audit. 2. Our merchant management system is based out of Ireland. Will that be acceptable? 1. Bidder requests the Bank to clarify the Scope of Work in detail for Reconciliation. Page 26 of 35

27 solution for acquiring business to the Bank through PSTN/GPRS-(with printer and without printer) EDC/PoS terminals, MPOS, PC-POS Terminals. This will include among others deployment and maintenance of POS/EDC terminals with time to time updating thereof, transactions/ authorization/ settlement/ operations, reconciliation, dispute resolution of charge back issues and complaints, online monitoring &marketing of POS/EDC terminals on behalf of the Bank. The terminal should have the capacity to switch over to Wi-Fi whenever there is network issue The bidder should have the capacity for time to time updating as per requirement of the Bank/regulators and should also have arrangement for training to the merchants. 64 ANNEXURE-T :: ELIGIBILITY CRITERIA Page No. 86, Point No. 11 The bidder should be preferably Original Equipment manufacturer (OEM). If not, then the bidder should be an authorized representative of OEM or should have tied up arrangement with a manufacturer of POS/EDC terminals. The tie up arrangement must be at least prior to the date of submission of bid 65 ANNEXURE-T :: ELIGIBILITY CRITERIA Page No. 87, Point No. 16 The bidder should have own switch, certified for credit &debit card acquiring business by VISA/MasterCard/ NPCI and Amex(if required by merchant/bank) and also the bidder should be a registered third party processor/member service provider(tpp/msp) for VISA/ MasterCard and NPCI with requisite experience stated at clause no.5. The bidder should have requisite valid licenses t o d o t h e M e r c h a n t A c q u i r i n g business. All the EDC/POS Terminals should 1. We don t have our own MPOS solution. We can provide this through EZETAP. Will this be acceptable to the Bank? 1. We as a company specialize in end to end merchant service (Merchant onboarding/ verification/ Implementation/ Merchant settlements/ Txn risk monitoring/ Merchant Service) and have a strategic partnership with a world class switch company (who provide switching service for Page 27 of 35

28 be directly connected to the bidders switch for providing switch services for acquiring transactions. one of the largest bank in India, this in itself proves their credibility and their security standards). We understand that in the RFP possessing an own switch is one of the eligibility criteria, we would like to state our opinion that, this clause restricts the eligible candidates only to a selected few and we believe allowing partners to work with a credible switch provider will create a larger pool of candidates. 2. By restricting to bidders with own switch will restrict participation in RFP. The bidders should be able to tie up with a switch service provider for providing an end-to-end solution to bank. More participation will result in bank getting best solution at the best price. 3. We as a company specialize in end to end merchant service (Merchant onboarding/ verification/ Implementation/ Merchant Page 28 of 35

29 66 ANNEXURE-T :: ELIGIBILITY CRITERIA Page No. 88, Point No. 19 The Bidder should have its VAP/MIP/ NFS connectivity in its Data Centre to provide the necessary connectivity to the Bank for routing VISA/ MasterCard/ NPCI transactions respectively on POS installed. 67 ANNEXURE-T :: ELIGIBILITY CRITERIA Page No. 89, Point No. 26 Whether any compromise has happened during the past 3 settlements/ Txn risk monitoring/ Merchant Service) and have a strategic partnership with a world class switch company (who provide switching service for one of the largest bank in India, this in itself proves their credibility and their security standards). We understand that in the RFP possessing an own switch is one of the eligibility criteria, we would like to state our opinion that, this clause restricts the eligible candidates only to a selected few and we believe allowing partners to work with a credible switch provider will create a larger pool of candidates. 1. Will Bank share the cost of VAP/MIP/ NFS connectivity 1. We believe that it is applicable across the infrastructure for the company & applicable for the Page 29 of 35

30 years and if so, details and steps taken / certificate taken subsequent to the compromise. 68 ANNEXURE-T :: ELIGIBILITY CRITERIA Page No. 89, Point No. 27 Call Centre facility to address complaints and maintain log with 24x7 toll-free number company & not to a small component, please confirm. 2. The service provider should have call 24 * 7 Centre services for handling merchant queries from 8 AM to 10 PM through agents and remaining time through IVR. 3. The service provider should have support centre with ticketing system for handling merchant queries and call centre to function from 9 AM to 9 PM through agents and remaining via ticketing system. 4. Bidder requests the Bank to provide details as to whether the Call Centre facility could function from morning to evening of around 16 Hours x 365 days from 07:00hrs to 23:00hrs. Bidder also requests the Bank to confirm whether the toll free line is reimbursable by the bank at actual or if this cost is to be borne by the bidder? 69 ANNEXURE - U :: TECHNICAL EVALUATION 1. The Wi-Fi connectivity shall To be read as Page 30 of 35

31 PARAMETERS Page 90 point 5 Presently Installed base of POS/EDC terminals, being managed by the bidders (alternate switching to Wi-Fi mandatory) PSTN Terminals 10 Upto 4000 terminals 4 Between 4000 to 6000 terminals 6 More than 6000 terminals OTHERS: Consortium 71 OTHERS: Terminal Count Breakup 72 OTHERS: Volume Projections in 3 years be applicable to only M POS, as only in case of MPOS, the device & Mobile are separate device & not for PSTN & other terminals, Kindly confirm. 2. Request if this can be reduced as the market trend from last 5 years is substantially skewed towards GPRS or mpos 1. Please clarify if a consortium is acceptable for bidding in RFP. All bidders may not be able to meet all the requirements of RFP and having a consortium partner can help in availing services which the bidder does not have. 1. Bank to specify Terminal count break up and Merchant count break up Month on Month wise 1. Commercial bid format is asking details for terminals for year 1-3, what are the current volumes? It also mentions that these volumes are for evaluation purpose only and actual The specific indented POS terminal installed at Banks request should be capable of switching over to Wi-Fi Network, whenever network issue is there, the terminal should work on Bluetooth and hot-spot connectivity. WILL BE SHARED WITH SUCCESSFUL BIDDER Page 31 of 35

32 73 OTHERS: Migration of Existing base 74 OTHERS: Underwriting - Credit and Risk requirements volumes may vary, so does it means there are no confirmed numbers for terminals for respective years? 1. Is there any existing merchant base migration? 1. Is underwriting part of the scope? Is the vendor only expected to provide the tool or complete managed services? If managed services are in scope, we would require scope of the managed services and new merchant boarding volume per month for the 3 years NO For Bank sourced merchants, Bank will be underwriting the merchants and for other merchant sourcing done by bidder, the underwriting to be done by bidders. 2. Kindly clarify if Bank will be underwriting of the merchant's Yours faithfully, Dy. General Manager Page 32 of 35

33 Commercial Bid format for e-auction (Amount in ) Sl. Type of POS Terminal. Units Unit Cost Annual Cost Total Cost for 3 years (a) (b) (c) (d) (e) = (c) x (d) x 12 (f) = (e) x 3 Mandatory Items 1 PSTN POS GPRS POS(with printer) without Wi-Fi GPRS POS(with printer) with Wi-Fi GPRS DIGIPOS(without printer) Mobile POS PC POS (Integration to PC) 2000 TOTAL (Mandatory Items) Optional Items (a) (b) (c) (d) (e) = (c) x (d) (f) = (e) 1 Merchant Sourcing Dongle or device for AEPS TOTAL (Optional Items) Grand Total (Mandatory items + Optional Items) NOTE i. Bidder should quote for Monthly Rental Fees for POS Terminals and One-time Cost for Merchant Sourcing. ii. Service Provider will not recover any charge either from the Merchant or Bank except above. Page 33 of 35