block, bandra kurla complex, bandra (east), mumbai-400051 · best practices and guidelines of rbi...

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जोखिम प्रबंधन विभाग/ Risk Management Department

प्रधान कार्ाालर्, सी-24, “जी” ब्लॉक, बांद्रा कुलाा कॉम्प्लेक्स, बांद्रा (पू), मुंबई – 400051 Head Office, C-24, “G” Block, Bandra Kurla Complex, Bandra (East), Mumbai-400051

प्रस्ताव हेत ुअनरुोध उत्कृष्ट अंतरराष्रीय पद्धततयों और बेसल I, II और III पर भारतीय ररजवव बैंक के

दिशातनिेशों के अनरुूप ऋण एवं बाजार जोखिम प्रबंधन के ललए सॉफ्टवेयर सोल्यशून की प्राप्तत,

स्थापना एवं कायावन्वयन हेतु वेंडर की तनयपु्तत के ललए प्रस्ताव भेजने का अनरुोध

(आरएफ़पी में पररयोजना के रूप में संिलभवत)

Request for Proposal

For

Procurement, Installation and Implementation of

Credit Risk and Market Risk Management

Solutions in accordance with the International

Best Practices and Guidelines of RBI on Basel I,

Basel II, Basel III

ननविदा संख्र्ा: एनबी.एचओ.आरएमडी/ 02 / आरएमडी-55/ 2018-19 ददनांक 21 निंबर 2018 Tender No: NB.HO.RMD/ 02 /RMD-55/2018-19 Dated: 21 November 2018

ननविदा दस्तािजे की लागत: रु. 10,000/- (रुपए दस हजार मात्र) Cost of Tender Document: Rs. 10,000/- (Rupees Ten Thousand only)

बर्ाना जमाराशि [ईएमडी] की लागत: रु. 10,00,000/- (रुपए दस लाि मात्र) Cost of Earnest Money Deposit [EMD]: Rs.10, 00,000/- (Rs. Ten lakh only)

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Contents

Glossary ................................................................................................................................................ 7

Section I - Tender Notice ............................................................................................................. 10

1.1. Invitation for Bids ................................................................................................................... 10

1.2. Objective of RFP ...................................................................................................................... 10

1.3. Bid Details ................................................................................................................................. 10

1.4. Important Instructions to bidders .................................................................................. 11

1.5. Definition ................................................................................................................................... 13

1.6. Disclaimer ................................................................................................................................. 13

Section II – About NABARD ....................................................................................................... 14

2.1 Overview ...................................................................................................................................... 14

2.2 Key functions of NABARD ................................................................................................... 14

2.3. Risk Management Set-up in NABARD ........................................................................... 15

Section III – Eligibility of bidder .............................................................................................. 16

3.1. Who can submit the bid ....................................................................................................... 16

3.2. Eligibility Criteria .................................................................................................................. 16

Section IV - Scope of Work ......................................................................................................... 20

4.1. Introduction ............................................................................................................................. 20

4.2. Objective of the project ........................................................................................................ 20

4.3. Broad Scope of Work ............................................................................................................ 21

4.4. Detailed Scope of Work ....................................................................................................... 22

a) Gap Identification & Resolution ............................................................................... 22

b) Design of Solution .......................................................................................................... 23

c) Parameterization, Configuration and Customization of Software ................ 23

d) Testing ................................................................................................................................. 24

e) Training .............................................................................................................................. 24

f) Implementation .................................................................................................................. 26

g) Annual Technical Support (ATS)/Annual Maintenance Contract (AMC) 28

h) Information Security .................................................................................................... 29

4.5. Responsibilities of Bidder .................................................................................................. 29

4.6. Additional Instructions to bidders ................................................................................. 34

4.7. Broad Level Overview........................................................................................................... 37

4.8. RACI Matrix ............................................................................................................................. 38

4.9. Time period for completion of assignment ................................................................. 39

4.10. Time Schedule ....................................................................................................................... 39

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4.11. Project Documentation and Manuals .......................................................................... 40

4.12. Reporting ................................................................................................................................ 40

Section V – Functional & Technical Requirements .......................................................... 41

5.1. Functional Requirements ................................................................................................... 41

5.2. Technical Requirements ..................................................................................................... 41

Section VI - Bid Submission Guidelines ................................................................................ 42

6.1. Two Bid System Offer ........................................................................................................... 42

6.2. Technical Bid ........................................................................................................................... 42

6.3. Commercial Bid ...................................................................................................................... 44

6.4. Soft Copy of the Bid ............................................................................................................... 44

6.5. Other instructions ................................................................................................................. 44

6.6. Pricing/Price Composition ................................................................................................ 47

6.7. Bid Security .............................................................................................................................. 48

6.8. Signatory ................................................................................................................................... 49

6.9. Amendment .............................................................................................................................. 49

6.10. Pre-bid Meeting .................................................................................................................... 49

6.11. Opening of Quotation ......................................................................................................... 49

Section VII – Evaluation & Scoring Methodology ............................................................. 51

7.1. Evaluation of Technical Bid:- ............................................................................................. 51

7.1.1. Scoring Methodology for Functional Requirements (FR) .................................. 52

7.1.2. Scoring Methodology for Technical Requirements (TR) .................................... 52

7.1.3. Scoring Methodology for Bid Presentation & Product Demonstration ........ 52

7.1.4. Scoring Methodology for Training ............................................................................... 53

7.1.5. Scoring Methodology for Site References and Team Strength ......................... 53

a) Reference site visit ................................................................................................................ 53

b) Team Strength: ....................................................................................................................... 53

7.1.6. Scoring Methodology for Past Experience (PE) ..................................................... 54

7.1.7. Bidder Evaluation Scoring .............................................................................................. 54

7.1.8. Qualification parameters in Technical Bid Evaluation ....................................... 56

7.1.9. Short Listing of Technically Qualified Bidders ....................................................... 56

7.2. Evaluation of Commercial Bid .......................................................................................... 57

7.3. Techno-Commercial Scoring (Overall Assessment for calculation of L1)....... 57

Section VIII – General and Legal Terms & Conditions ................................................... 58

8.1. Notification of Acceptance of Bid .................................................................................... 58

8.2. Payment ..................................................................................................................................... 58

8.3. Project management ............................................................................................................ 59

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8.4. Signing of contract ................................................................................................................ 59

8.5. Conditions precedent to contract .................................................................................... 59

8.6. Use of Contract Documents & Information ................................................................ 60

8.7. ‘No Claim’ Certificate ............................................................................................................ 60

8.8. Publicity ..................................................................................................................................... 60

8.9. General Terms and Conditions ........................................................................................ 60

8.10. Integrity Pact ......................................................................................................................... 61

8.11. Ethical Standard ................................................................................................................... 61

8.12. Indemnification .................................................................................................................... 62

8.13. Delay in adhering to the project timelines/Liquidated damages ..................... 63

8.14. Confidentiality ...................................................................................................................... 64

8.15. Notice ........................................................................................................................................ 64

8.16. Settlement of disputes by Arbitration ......................................................................... 64

8.17. Termination ........................................................................................................................... 66

a) Termination for Default............................................................................................... 66

b) Termination for Insolvency ........................................................................................ 67

c) Termination for convenience ........................................................................................ 67

d) Termination – Key Terms & Conditions ............................................................... 67

e) Consequences of Termination ................................................................................... 68

f) Exit Option ............................................................................................................................ 68

8.18. Force Majeure ....................................................................................................................... 69

8.19. Security deposit by way of Performance Bank Guarantee .................................. 69

8.20. Limitation of Liability ....................................................................................................... 70

8.21. Insurance ................................................................................................................................ 70

Section IX – Additional Instructions for Bidders ............................................................. 71

9.1. Ownership of Software......................................................................................................... 71

9.2. Source Code.............................................................................................................................. 71

9.3. Supply of Software Licenses .............................................................................................. 72

9.4. Software Delivery & Installation ..................................................................................... 72

9.5. Acceptance of software ........................................................................................................ 73

9.6. Inspection and Tests ............................................................................................................. 73

9.7. Information Ownership ...................................................................................................... 74

9.8. Information Security of the Bank ................................................................................... 74

9.9. Adherence to Standards ...................................................................................................... 75

9.10. Security Configuration, Monitoring and Audit ....................................................... 75

9.11. Considerations for Proposed Software to support the Solution ....................... 76

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9.12. Performance Guidelines ................................................................................................... 76

9.13. Service Level Agreement (SLA) ...................................................................................... 77

9.14. SLA for Software - Performance .................................................................................... 78

a. Uptime Efficiency................................................................................................................... 78

b. Response Time to errors..................................................................................................... 78

c. SLA Table ................................................................................................................................... 79

9.16. Terms and Conditions during AMC/ ATS Period .................................................... 81

Annexure-1: Check List for Submission of Bid Documents ........................................................... 84

Annexure-2: Authorization Letter Format........................................................................... 86

Annexure-3: Non-Disclosure Agreement Form ................................................................. 87

Annexure-4: Check list for submission of eligibility criteria the bidder and OEM

................................................................................................................................................................ 95

Annexure-5: Profile of bidder and OEM ............................................................................... 96

Annexure-6: Implementation methodology ........................................................................ 98

Annexure-7: Reference site details .......................................................................................... 99

Annexure-8: Past Experience .................................................................................................. 101

Annexure-9: Team profile* ....................................................................................................... 102

Annexure-10: Training ............................................................................................................... 104

Annexure-11: Cover Letter for Commercial Bid ............................................................... 105

Annexure-12: Format for furnishing the Commercial Bid .......................................... 106

Annexure-13: Bid submission Covering Letter ................................................................. 110

Annexure-14: Notification of Acceptance ........................................................................... 111

Annexure-15: Specimen contract form ............................................................................... 112

Annexure-16: Performance Bank Guarantee Format .................................................... 123

Annexure-17: RACI Chart .......................................................................................................... 126

Annexure-18: RBI communication to AIFIs regarding Review of Regulatory

Framework for the AIFIs dated November 28, 2016 ..................................................... 128

Annexure-19: Format for furnishing Bank Guarantee in lieu of Earnest Money

Deposit .............................................................................................................................................. 129

Annexure-20: Pre Contract Integrity Pact ......................................................................... 132

Annexure-21: Confidentiality Undertaking Format ....................................................... 139

Annexure-22: RFP Download Declaration ......................................................................... 141

Annexure-23: Declaration that the Bidder is not blacklisted by any other Bank’s/

PSU’s/ Govt.’s Vendor ................................................................................................................. 142

Annexure-24: Terms and Conditions Compliance Table ............................................. 143

Annexure-25: Details of Service/ Support Centre ........................................................... 145

Annexure-26: Manufacturer’s / Developer’s Authorization Form (MAF / DAF) 146

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Annexure-27: Declaration of Clean Track Record .......................................................... 147

Annexure-28: Letter of Indemnity and Undertaking ..................................................... 148

Annexure-29: Present Setup of IT Systems of the Bank ............................................... 151

Annexure-30: Requirement for Sizing ................................................................................ 154

Annexure 31 – Functional Requirements ........................................................................... 157

i. Functional Requirements for Credit Risk: ................................................................. 157

ii. Functional Requirements for Market Risk: ........................................................... 167

iii. Functional Requirements in Respect of Pillar- II, Pillar- III & Basel III and Integrated Capital Computation Module ............................................................................ 188

iv. Functional Requirements in Respect IFRS 9 and ECL Calculation .............. 192

Annexure 32 – Technical Requirements ............................................................................. 203

Annexure 33: Pre-Bid Query format ..................................................................................... 210

Annexure 34 - Forwarding Letter (Technical Bid) .......................................................... 211

Annexure 35: Details and Specifications of Hardware ................................................. 212

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Glossary

Sl.No. Acronym/

Term Used

Definition

1. AFS Available For Sale 2. AIFI All India Financial Institution 3. AGL Aggregate Gap Limit 4. AIRB Advanced Internal Ratings Based 5. ALM Asset And Liability Management 6. AMA Advanced Measurement Approach 7. AMFI Association Of Mutual Funds In India 8. ASCII American Standard Code For Information Interchange 9. ATS Annual Technical Support 10. Bank National Bank For Agriculture & Rural Development Bank

(NABARD) 12. Basel II

Guidelines Framework for Capital Measurement and Capital Standards issued by Basel Committee on Banking Supervision

13. Basel II RBI Guidelines

Master Circular - Prudential Guidelines on Capital Adequacy and Market Discipline- New Capital Adequacy Framework (NCAF) Implementation of the Advanced Measurement Approach (AMA) for Calculation of Capital Charge for Operational Risk - Guidelines Capital Adequacy - The Internal Ratings Based (IRB) Approach to Calculate Capital Requirement for Credit Risk Prudential Guidelines on Capital Adequacy - Market Risk under Standardized Measurement Method (SMM)

14. Basel III Guidelines

A global regulatory framework for more resilient Banks and Banking systems and International framework for liquidity risk measurement, standard and monitoring

15. BCBS Basel Committee on Banking Supervision 16. Bidder The bidder providing or intending to provide the Services

under this Contract 17. BIS Bank For International Settlements 18. BSE Bombay Stock Exchange 19. CBS Core Banking Solutions 20. CCIL Clearing Corporation Of India Ltd. 21. CD Certificate Of Deposit/Compact Disc 22. CDS Credit Default Swap 23. Contract

The work order issued by NABARD, Head Office, Mumbai and acceptance of the same by the bidder of services, including all attachments and appendices thereto and all documents incorporated by reference therein

24. Contract Price

The price payable to the Bidder under the Contract for the full and proper performance of its contractual obligations

25. CRISIL Credit Rating Information Services Of India Limited 26. CRMS Credit Risk Management System 27. CSV Comma-Separated Value 28. CVA Credit Valuation Adjustment

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29. DIT Department Of Information Technology 30. DVD Digital Video Disc 31. DVP Delivery Versus Payment 32. EAD Exposure At Default 33. EDW Enterprise Data Warehouse 34. FEDAI Foreign Exchange Dealers’ Association Of India 36. FIFO First In First Out 37. FIMMDA Fixed Income Money Market And Derivatives Association Of

India 38. FIRB Foundation Internal Ratings Based 39. FX Foreign Exchange 40. 41. GL General Ledger 42. GLM Generalised Linear Model 43. GLMM Generalised Linear Mixed Model 44. GUI Graphical User Interface 45. HFT Held For Trade 46. HRMS Human Resource Management System 47. HTM Held To Maturity 48. ICAAP Internal Capital Adequacy & Assessment Procedure 49. IGL Individual Gap Limit 50. IMA Internal Model Approach 51. IMF International Monetary Fund 52. IR Interest Rate 53. iRAC Income Recognition And Asset Classification 54. IRB Internal Ratings Based 55. IT Information Technology 57. LDP Low Default Portfolio 59. LGD Loss Given Default 60. LIBOR London Interbank Offer Rate 61. LIFO Last In First Out 62. M Effective Maturity 63. MIS Management Information System 64. MRMS Market Risk Management System 65. MTM Marked To Market 66. NABARD National Bank For Agriculture And Rural Development 67. NAS Network Attached Storage 68. NCAF New Capital Adequacy Framework 69. NDS Negotiated Dealing System 70. NOOP Net Overnight Open Position Limit 71. NPA Non-Performing Asset 72. NPV Net Present Value 73. NSE National Stock Exchange 74. OEM Original Equipment Manufacturer/ Product Vendor 75. OSMOS Off-Site Monitoring And Surveillance 78. OTC Over The Counter 79. PD Probability Of Default 80. PFE Potential Future Exposure 81. P&L Profit & Loss

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82. PVBP Price Value Of A Basis Point. 83. QRRE Qualified Revolving Retail Exposures 84. RAPM Risk Adjusted Performance Measurement 85. RBI Reserve Bank Of India 86. RCA Root Cause Analysis 87. RFP Request For Proposal 88. RISC Reduced Instruction Set Computer 90. RMD Risk Management Department 91. RO Regional Office 92. RTGS Real Time Gross Settlement 93. RWA Risk Weighted Assets 94. Services Software and related services and other such obligations of

the Bidder as applicable under the Contract 95. SI System Integrator 96. SL Specialized Lending 97. SLA Service Level Agreement 98. SMM Standardized Measurement Method 99. SMS Short Message Service

100. Solution Software solution for implementation of CRMS and MRMS System

101. SPEC Standard Performance Evaluation Corporation 102. SWIFT Society For Worldwide Interbank Financial

Telecommunication 103. TBO Treasury Back Office 104. TCC Terms and Conditions of Contract 105. TGA Traditional Gap Analysis 106. TMO Treasury Mid Office 107. TO Technical Offer 108. UAT User Acceptance Testing 109. VaR Value at Risk 110. Vendor The bidder providing or intending to provide the Services

under this Contract 111. XML Extensible Mark-Up Language 112. ZCYC Zero Coupon Yield Curve

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Section I - Tender Notice

1.1. Invitation for Bids

National Bank for Agriculture and Rural Development (NABARD), is a body corporate

established under the NABARD Act, 1981 (hereinafter referred to as "The Bank")

having its Head Office at Plot No. C-24, Block 'G', Bandra-Kurla Complex, Bandra

(East), Mumbai - 400051 and Regional Offices (ROs) / Training Establishments (TEs)

in different cities across the country.

The Bank intends to invite sealed Techno-Commercial bids from eligible reputed

bidders to provide end to end software solution for “Implementation of

Procurement, Installation and Implementation of Credit Risk and Market

Risk Management Solutions in accordance with the International Best

Practices and Guidelines of RBI on Basel I, Basel II, Basel III.”

A complete set of Request for Proposal (RFP) can be obtained during office hours on

all working days in person. Alternatively, complete set of RFP for the above purpose

can be downloaded from Bank’s official website www.nabard.org. The bidder who has

purchased/ downloaded the RFP is required to submit a non-refundable fee of

`10,000/- (Rupees ten thousand only) in the form of Demand Draft/Bankers Cheque/Pay Order, in favour of NABARD payable at Mumbai during office hours

within the last date and time of submission of bid, failing which the bid of the concerned

bidder will not be entertained. The hard copy of this document (RFP) procured from

the Bank or downloaded from the official website, will alone be treated as authenticated

copy for all purposes.

1.2. Objective of RFP

The Bank has decided to float this RFP to achieve the following objective:

To invite techno-commercial bids from corporate body/ Public or Private Ltd

company/Public sector undertaking/ Partnership Firm/LLP, for undertaking

the scope of work as outlined in Section IV of this document.

To appoint a competent party through an sealed tendering process for laying

down an Enterprise-wide Credit and Market Risk Management Architecture in

accordance with the International Best Practices and RBI Guidelines on Basel I,

Basel II and Basel III.

1.3. Bid Details The details related to Bid Collection and submission are given below. Bid Reference number : NB.HO./RMD/ 02 /RMD-55/2018-19

Cost of RFP (non-refundable) : ` 10, 000/- (Rupees ten thousand only) in the form of Demand Draft/Bankers Cheque/Pay Order, in favour of NABARD payable at Mumbai.

Earnest Money Deposit (Refundable)

: ` 10,00,000/- (Rupees Ten Lakh only) by way of a separate Bankers Cheque/Demand Draft/Pay Order in favour of NABARD payable at Mumbai. OR

http://www.nabard.org/

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With an equivalent amount of Bank Guarantee (BG) issued by a Scheduled Commercial Bank valid for 180 days from the date of opening of the Tender as per format given in the Annexure 19.

Date of issue of RFP : 21 November 2018 (Monday)

Last date for submission of pre-bid queries

: 03 December 2018 (Monday)

Pre Bid Meeting : 12 December 2018 (Wednesday)

Last date and time for submission of Bids

: 31 December 2018 (Monday) at 3.00 pm at NABARD Head Office

Opening of Technical Bid : 31 December 2018 (Monday) at 3.30 pm at NABARD Head Office

Address for submission of bids : The Chief General Manager Risk Management Department, National Bank for Agriculture & Rural Development, 3rd Floor, C Wing, Plot No C-24, G Block Bandra Kurla Complex Bandra (E) Mumbai - 400051

Contact Person : 1. Shri A M Yadav, General Manager, 022- 26539172, 9422986071 2. Shri R Sankar, DGM, 022-26539429, 9443380618 3. Ms Priyanka Saini, Mgr, 022-26539437, 9618229675 4. Trupti V Malandkar, AM, 022-26539388

E– mail : [email protected]

No. of envelopes (Non window, sealed) to be submitted

: Two (2) Envelopes Sealed Envelope 1 containing :- Technical Bid + EMD (DD/BG) + Cost for RFP Document Sealed Envelope 2 containing:- Commercial Bid

1.4. Important Instructions to bidders

a) The Bank invites responses from bidder to propose a contractual arrangement for

the provision, implementation and after-sales support as described in this

document.

b) The purpose of this RFP is to enable the bidder to communicate their qualifications

and product specifications to facilitate the selection of an appropriate Credit &

Market risks management software solution.

c) Before bidding, the bidders are requested to carefully examine the RFP Document

and the terms and conditions specified therein. If any bidder requires any

clarification on this RFP, may notify the Bank through Designated Bank officials

and must communicate the same in writing or by email at the Bank’s mailing

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address indicated in the RFP on or before 03rd December 2018 (Monday) at

03.00 pm. Bidders should notify the Bank of any error, omission, or discrepancy

found in this RFP document not later than 03rd December 2018 (Monday) at

03.00 pm. Further, all queries relating to the RFP, technical or otherwise, must

be in writing only i.e. either via physical or electronic mail. The Bank will try to

reply, without any obligation in respect thereof, every reasonable query raised by

the Bidder in the manner specified.

d) No suggestions or queries shall be entertained after the pre-bid meeting.

e) The Bank reserves the right to accept or reject any or all the bids without assigning

any reason whatsoever. Any decision of the Bank in this regard shall be final,

conclusive and binding on the bidder.

f) Cancellation of Bid

The Bank reserves right to re-issue/re-commence the entire bid process and or any

part in case of any anomaly, irregularity or discrepancy in regard thereof without

assigning any reason whatsoever, at the sole discretion of the Bank. Any decision

in this regard shall be final, conclusive and binding on the bidder.

g) Period of Validity of Bids Validity Period: - Bids shall remain valid for 180 days from the last date

specified for submission of bids in this RFP. The Bank holds the rights to reject a bid valid for a period shorter than 180 days.

Extension of Period of Validity: - In exceptional circumstances, the Bank may solicit the Bidder’s consent to an extension of the validity period. The request and the response thereto shall be made in writing. Extension of validity period by the Bidder should be unconditional and irrevocable.

h) All costs and expenses (whether in terms of time or money) incurred by the bidders

in any way associated with the development, preparation and submission of

responses, including but not limited to attending at meetings, discussions,

demonstrations and for providing any additional information required by Bank, will

be borne entirely and exclusively by the bidders.

i) The Bank reserves the right to change the dates mentioned above or in the RFP,

which will be communicated through the Bank’s web site.

j) Any bid submitted without payment of ` 10,000/- (Rupees ten thousand only),

being the cost of RFP, shall be immediately rejected.

k) Non enclosure of Earnest Money Deposit (EMD) of ` 10.00 lakh will result in

rejection of bid.

l) The bidder shall ensure compliance of Central Vigilance Commission guidelines

(CVC) issued/ to be issued from time to time pertaining to the work covered under

this RFP.

m) No binding legal relationship will exist between any of the bidder and the Bank until

execution of a contractual agreement to the full satisfaction of the Bank.

n) The bidder will, by responding to the Bank’s RFP document, be deemed to have

accepted the terms as stated in this RFP document.

o) Finally selected bidder based on terms and conditions this RFP should supply,

install, commission, customize, implement and maintain a comprehensive software

solution in our Bank for implementing “Credit & Market Risk Management

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Architecture in accordance with the International Best Practices and RBI

Guidelines on Basel I, Basel II & Basel III”.

1.5. Definition

The term ‘Project period/duration of project/tenure of project’ used in this RFP is of six years which includes Implementation period of 1 year and AMC/ATS for a period of five years after GO Live. The term ‘GO LIVE date’ used in this RFP refers the point of time of 3 weeks post UAT sign off and movement of system to production.

1.6. Disclaimer

The information contained in this Request for Proposal (RFP) document or information provided subsequently to bidder(s) or applicants whether verbally or in documentary form by or on behalf of National Bank For Agriculture & Rural Development (NABARD), is provided to the bidder(s) on the terms and conditions set out in this RFP document and all other terms and conditions subject to which such information is provided. This RFP document is not an agreement and is not an offer or invitation to bid by

National Bank for Agriculture & Rural Development to any parties other than the

applicants who are qualified to submit the bids (“bidders”). The purpose of this RFP is

to provide the bidder(s) with information to assist them in formulation of their

proposals. This RFP does not claim to contain all the information each bidder may

require. Each bidder should conduct its own investigations and analysis regarding any

information contained in the RFP document and the meaning and impact of that

information and should check the accuracy, reliability and completeness of the

information in this RFP and where necessary obtain independent advice. National

Bank for Agriculture & Rural Development makes no representation or warranty,

express or implied, and shall incur no liability under any law, statute rules or

regulations as to the accuracy, reliability or completeness of this RFP. National Bank

for Agriculture & Rural Development may in its absolute discretion, but without being

under any obligation to do so, update, amend or supplement the information in this

RFP. The Bank may in its absolute discretion, but without being under any obligation

to do so, update, amend or supplement the information in this RFP.

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Section II – About NABARD

2.1 Overview

National Bank for Agriculture and Rural Development (hereafter referred to as the

Bank or NABARD) is the Apex Bank for Agriculture and Rural Development,

established in terms of the NABARD Act, 1981. It commenced its operations on 12 July,

1982. The Mission of NABARD is to “Promote sustainable and equitable agriculture

and rural development through participative financial and non-financial interventions,

innovations, technology and institutional development for securing prosperity.” The

details of financials of NABARD & its subsidiaries is available on the website of

NABARD i.e. www.nabard.org and websites of its various subsidiaries.

As on 3o April 2018, the Bank had a staff strength of approximately, 3968, comprising

officers, assistants and sub staff. The Bank functions as an all India organisation having

offices at various places in the country. At present, the Bank is having its Head Office

(HO) at Mumbai has its offices, training establishments and other offices at various

locations. In addition, there are District Development Offices in 611 districts across the

country. Functionally, the different work areas of the Bank are handled by different

Head Office Departments of the Bank, independently or in collaboration with the

corresponding set up at Regional Offices of the Bank. The details of Head Office

Departments/Regional Offices/Training Establishments/District Development Offices

are available on Bank’s website www.nabard.org. The Departments set up at the

Regional Offices largely correspond to the Head Office Departments. Further,

NABARD promotes four subsidiaries as on 31st March 2018, i.e. NABARD Consultancy

Services (NABCONS), NABKISAN Finance Limited (NKFL), NABSAMRUDDHI

Finance Limited and NABARD Financial Services Private Limited (NABFINS).

2.2 Key functions of NABARD

i. Providing refinance to approved financial institutions for lending to

ultimate borrowers for approved purposes – both in farm and off-farm

sectors

ii. Providing loans to state government for developing critical rural

infrastructure including social infrastructure and strengthening cooperative

credit institutions

iii. Providing loans to corporates/State Govt entities for food processing,

infrastructure development, procurement and marketing etc.

iv. Providing promotional support for farm and non-farm activities like

watershed development, tribal development, natural resources

management, entrepreneurship development, skill upgradation of rural

artisans and rural women, technology development for financial inclusion,

micro credit innovations of NGOs and other formal and informal agencies.

v. Monitoring and evaluation of projects financed

vi. Supervision of RRBs and StCBs

http://www.nabard.org/

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2.3. Risk Management Set-up in NABARD

NABARD has established a full-fledged department to take care of risk related aspects in NABARD. The Integrated Enterprise Risk Management Policy covering credit risk, market risk, operational risk and compliance risk has been put in place since July 2015. Risk Management set-up right from the Board of Directors to Regional Offices has been established and is functional. NABARD has been managing Risk through various Departments at Regional and Head office levels while doing business. A brief introduction of the same is given below. Credit Risk NABARD has been in refinance business since inception and has ventured into direct lending also. Credit risk covers appraisal risk, ( borrower risk, project risk, technical and feasibility risk, security risk, documentation (Legal) risk), monitoring risk etc. Default forecasting system and rating modules are used in the Business Departments. Market Risk Investments are made in G-Sec, bonds, mutual funds and other approved securities as there is a need to mitigate the market risk. The investments are divided into HFT, AFS and HTM category and also mark to market concept is being followed as per regulatory guidelines. As risk mitigation measures, duration, modified duration, PV01, VaR and stress testing concepts are adopted.

Liquidity and Interest Rate Risk NABARD has been funding its operations both through long-term and short-term borrowings and therefore has to address liquidity risk and interest rate risk. ALCO meetings are convened on a monthly basis to review on the liquidity gaps and interest rate movements and to manage the assets and liabilities as per the ALM policy of NABARD besides deciding on interest rates for refinance products. In order to strengthen the Asset Liability Management and also to have the data generated from the system, Treasury and Asset Liability Management Solution (TALMS) package implementation is under way.

Operational Risk NABARD has operations through District Offices, Regional offices and HO Departments. Being a development bank, it has to deal with various Government departments, banks, NGOs etc. The implementation of six software solutions, i.e., Enterprise Content Management Solution, ENSURE, Centralised Loan Management and Accounting System (CLMAS) and Treasury and Asset Liability Management System (TALMS) (which includes sub-modules such as Treasury Module & Asset Liability Management Module) and Resource Mobilization Unit (RMU) System is underway and a Human Resources Management Solution is functional. These systems/solutions have a bearing on IT related systemic risks.

Compliance Risk Various statutory provisions and regulatory guidelines as applicable to NABARD have to be complied with. The Chief General Manager (CGM) of Risk Management Department is the Chief Compliance Officer of NABARD with CGMs / OICs of HO Departments and Regional Offices acting as Compliance Officers. There is no existing Risk Management solution in the bank.

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Section III – Eligibility of bidder

3.1. Who can submit the bid

a) The bid shall be submitted by the System Integrator (SI) only. The term bidder used

in this RFP refers to the entity who has submitted the bid.

b) One bidder cannot submit more than one bid. In case more than one bid is

submitted by the bidder, all the bids will be rejected.

c) The bidder is responsible to carry out the entire end to end implementation of the

software solution as per the scope of work specified in this RFP.

d) Two SIs shall not partner with each other to bid jointly for this project.

e) The bid should clearly spell out the tasks proposed to be undertaken by the OEM.

If any of the functional/technical requirements is achieved with the help of OEM,

details of such requirements shall be mentioned in the bid and during the product

demonstration the OEM shall display his capability in achieving the

aforementioned requirements.

f) One bidder in the capacity of SI can partner with multiple OEMs (for separate credit

risk and market risk modules) to provide the Solution through this bid.

g) The bidder/OEM should endorse the hardware & related software sizing, stating

that technically their software can be deployed on the proposed sizing. This can be

through declaration or sharing authentic / official benchmark reports.

h) The SI is responsible to carry out the process and accomplish the assigned task.

i) The SI must not change the OEM once the bidding process is completed or at any

stage for the duration of the contract.

j) The SI cannot partner with any third party other than the OEM for the purposes of

this project.

k) A bidder to this RFP acting as the SI cannot participate in the bid submitted by

another bidder (SI) as the OEM of that bid.

3.2. Eligibility Criteria

i. The Bank intends to identify a Risk Solution Provider who has demonstrable

technical competency for implementing Basel-I/Basel-II/Basel-III norms in tune

with RBI guidelines and International Best Practices. The Bidder should have

capability to review the existing risk management framework of the Bank

(including policies, structures, processes, etc.) in order to design and implement

Basel I/Basel II/BASEL III guidelines for Credit and Market, instituting ICAAP and

Pillar III and Integrated Capital calculation. The Bidder is expected to have

adequate experience in implementation of software products/ projects in an

integrated risk management framework for Basel I, Basel II, Basel III, and also

possess high quality/ process accreditation(s). The Bidder should be well

established and have sound financial standing. Only those Bidders who fulfil the

following criteria are eligible to respond to the RFP. Any effort by Bidder to

influence the Bank in the Bank’s bid evaluation, bid comparison or contract award

decision, may result in the rejection of the Bidders’ bid. Bank’s decision will be final

and without prejudice, and will be binding on all Bidders.

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ii. The bidders are required to meet the following eligibility criteria and provide

adequate documentary evidence for each of the criteria stipulated below. Only

those bids satisfying all the minimum eligibility criteria would be further processed

(All the documents need to be self-certified by the authorised person with name

and designation).

iii. Only those Bidders who fulfil the following criteria are eligible to

respond to the RFP. Offers received from the bidders who do not fulfil

any of the following eligibility criteria are liable to be rejected.

iv. The eligibility criteria are given as under:

Sl No Eligibility criteria Details of Proof

Minimum Eligibility Criteria

1 The Bidder should be a registered company in India or PSU/PSE/Registered Partnership Firm or Limited Liability Partnership under Indian Laws, with an established set up with support of adequate staff and an office in India.

Copies of Certificate of Incorporation, Certificate of commencement of business, Reference of Act/ Notification/Registration Certificate etc.

2 The bidder & OEM each should have minimum annual turnover of `100 Crore in the last three financial years i.e. 2015-16, 2016-17 & 2017-18. The bidder/OEM should not have accumulated losses as on 31.03.2018

Copies of Annual Reports in case of listed companies and copies of Audited balance sheets and P&L statements in case of others

3 The Bidder should have made Net Profit (after all taxes etc.) during the last three financial years i.e. 2015-16, 2016-17 & 2017-18

Copies of Annual Reports in case of listed companies and copies of audited balance sheets and P&L statements in case of others.

4 The Bidder should own the intellectual property rights of the product / solution or should have rights from the owner for deployment/ resale/ customization of software from OEM or any other third party, whose software products are offered.

Self-Declaration from the Bidder and an authorization letter from manufacturer to this effect should be furnished giving mandate to participate in this RFP. Self-declaration should also specify that the bidder would be solely responsible for designing, procuring and delivering the entire solution. Letter as per Annexure 26 shall also be submitted.

5 The Bidder and the proposed OEM solution provider should have not been blacklisted at any time by any regulator / statutory body/ any government department/ state government/ PSU/ PSE/Financial Institution or banks in India.

An undertaking to this effect must be submitted on bidder's letterhead with signature by the authorised signatory. (Annexure 23)

6 Bidder should have experience of having implemented Standardised Approach for Credit Risk solution for

An undertaking to this effect (specifying the banks serviced, along with bank’s

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scheduled commercial banks/AIFIs in India for one year as on 31.03.2018. Experience in co‐operative banks (State Co‐operative Banks, District Central cooperative banks, Urban Co‐operative banks, RRBs etc.) shall not be considered for evaluation. The bidder shall have the capability and currently implementing IndAS (Expected Credit Loss calculation) solutions for scheduled commercial banks/AIFIs in India.

confirmation) must be submitted on bidder’s letterhead. OR relevant credential letter OR Purchase Order / Work order with Completion certificate

7 OEM product (software) should have capability in the required areas viz. Credit Risk, Market Risk, and IndAS (Expected Credit Loss calculation). The credit and market risks solutions should have been implemented for scheduled commercial Bank/AIFI in India for an uninterrupted period of two years as on 31.03.2018. Further, OEM solutions for IndAS (Expected Credit Loss calculation) should have been implemented or currently in the process of implementation for scheduled commercial Bank/AIFI in India. Experience in Co‐operative banks (State Co‐operative Banks, District Central cooperative banks, Urban Co‐operative banks, RRBs etc.) shall not be considered for evaluation. The OEM product should have the capability to implement the Advanced Approaches for Credit and Market Risks.

Self-Certification with product version details Completion Certificate/Work Order/ Any other document evidencing implementation.

8 The Bidder and OEM must have presence in India and be able to support the project in Mumbai during the contract period.

Documentary evidence/self-certification/undertaking that they have presence/manpower/resources to support the project in Mumbai during the Contract period (including the AMC period).

9 The Bidder should have experience with supply, installation, customization, integration, training and maintenance of Integrated

Completion Certificate/Work Order/Any other document evidencing implementation.

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Solution in Scheduled Commercial bank/ financial institution in India.

10 The bidder must warrant that it is a going concern, financially solvent, i.e. able to meet all its debts as and when they fall due.

Certificate from a Chartered Accountant that bidder is financially solvent i.e. able to meet all its debts as and when they fall due

11 The bidder must warrant that there is no legal action being taken against it for any cause in any legal jurisdiction. If such an action exists and bidder considers that it does not affect its ability to deliver the RFP requirement, it shall provide details of the case and declaration in this regard

Certificate as per Annexure 34 of RFP.

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Section IV - Scope of Work

4.1. Introduction

To achieve the Bank’s objective to manage and evaluate the credit, market, operational and compliance risks better, the Bank has been in the process of enhancing its risk management practices and believes that such practices with the strategic aim of migration to advanced approach would help achieve long term benefits. In order to achieve the Bank’s objectives, it intends to implement a robust and highly scalable ‘Credit & Market Risk Management Solution’ with the required infrastructure to support all the business, technical and functional requirements related to enterprise-wide credit and market risk management. The ‘Credit & Market Risk Management Solution’ should be a business solution,

covering all the mentioned functionality (detailed in the RfP) and flexibility required to

carry out the enterprise-wide credit and market risk management activities in the

current and foreseeable future. It should support multiple organizational entities and

locations.

The scope of work would include design, supply, configuration, customization, integration, testing, user acceptance, documentation, training, and annual maintenance support, contracted for all the components of the solution including software/database/licenses/tools required for the fulfilment of the scope.

The solution should have proven integration capabilities with the CBS and bidder should ensure that the solution does not have a performance impact on the CBS or any other channel. At each stage of implementation, OEM has to submit a letter on their letter head mentioning that the product has been implemented with industry best practices.

4.2. Objective of the project

The Bank wishes to appoint competent party for laying down an Enterprise-wide Credit & Market Risk Management Architecture in accordance with the International Best Practices and RBI Guidelines on Basel I, Basel II and Basel III by way of implementing Enterprise wide ‘Credit & Market Risk Management Solution’. The overall objective of the project is to assist the Bank for a smooth migration to the desired future goal as set out in the preceding paras by ensuring that a comprehensive credit and market risk management system is put in place for identification, assessment, monitoring and reporting of enterprise level credit and market risks of the organisation. NABARD is governed by BASEL-I regulatory requirements. However, it looks forward to meet the BASEL-III norms (as per RBI communication to AIFIs regarding Review of Regulatory Framework for the AIFIs dated November 28, 2016- Annexure- 18).

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The scope of the services specified under this RFP is governed by the guidelines issued

by RBI on implementation of Basel I/II/III communicated to AIFIs regarding Review

of Regulatory Framework for the AIFIs dated November 28, 2016, subject to regulatory

modification if any (as enclosed as Annexure-18). Any change made by RBI/GOI in the

existing guidelines or issue of fresh guidelines on these matters shall automatically

enlarge the scope of work specified under this RFP and the duties of selected bidder

shall deemed to be discharged only when the Bank complies with the revised guidelines

issued on this matter. There will be no cost escalation on account of this and the bidder

shall complete the project as per the revised scope of work. Any cost related to such

escalation may be factored in Annexure 12 under “Customisation Cost for 1000 man-

days”.

The Bank expressly stipulates that the selection of bidder under this RFP is on the

understanding that this RFP contains only the principal provisions for the entire

assignment and the services rendered in accordance with the scope of work defined

under this RFP are only a part of the assignment. The bidder shall perform all such

tasks, render requisite services as may be required for successful completion of the

project to the satisfaction of the Bank at no additional cost to the Bank, to attain the

underlying objectives for which this RFP is floated.

4.3. Broad Scope of Work

The broad scope of the project envisages:

a) Installation, customization, configuration, implementation and maintenance of the

software required for an Enterprise Wide Credit & Market Risk Management

Solution to achieve compliance with Basel-I/Basel- II/Basel- III norms. Any other

hardware/software which is essential to run application and not quoted will be

supplied and installed at free of cost except by way to requirements necessitated by

change in scope of work.

b) Parameterization, historical data management, verifying data quality, migrating

data, user acceptance testing, documentation, knowledge transfer and support

c) Interfacing with internal systems including core banking software solution and

other external systems, validation of models and processes and maintenance of

application software, system software, database, interfaces etc.

d) Installation and maintenance of software in the hardware provided at NABARD,

HO, Mumbai and Disaster Recovery site at Faridabad.

e) Providing training to Bank’s designated personnel and also provide Modular wise

user manual as well as administrator’s manual, post-implementation on-site

support for 6 months from GO LIVE date and further support till the end of agreed

AMC period

f) The solution/s offered should be web based, open platform and support data

transfer and consolidation from the networked systems either online or dial up.

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The Project would be implemented at the Head office of the Bank, located at Mumbai,

Maharashtra for Credit and Market under relevant guidelines of RBI under BASEL I,

II & III. Requisite modules would need to be rolled out in all Head Office Departments,

Regional Offices and Training Establishments of the Bank. For Market Risk

Management, project would be implemented at the Banks’ mid- offices in Treasury,

Mumbai. Training of all users across various locations (as necessary), would need to be

provided. The software products shall be installed, implemented and maintained at the

Banks data centre at BKC, Mumbai, and at the Disaster Recovery Site at Faridabad. The

SI needs to provide access for necessary modules under Credit & Market Risks to the

concerned HO department, Regional Offices and Training Establishments as per

requirements.

Technical support shall be extended from Department of Information Technology

(DIT) and functional and operations support shall be from other centres as the Risk

Management Framework demands.

4.4. Detailed Scope of Work The detailed scope of assistance has been given below:

a) Gap Identification & Resolution

i. The selected bidder will be responsible for conducting the gap analysis for identifying gaps in Bank’s framework, policies, procedures, governance, and existing IT systems which needs to be bridged in the Risk System prior to deployment of Credit & Market Risk solution. The gap analysis should be done in the context of Basel I, Basel II, Basel III and other regulatory guidelines issued by RBI applicable on AIFI etc. pertaining to Credit Risk Management, Market Risk Management and Integrated Capital Computation and Reporting.

ii. Provide the Bank with the gap identification report along with the recommendations and estimated time frames to resolve the same.

iii. Provide various tools /utilities to bridge the gaps identified during Gap analysis phase without any extra cost.

iv. Determine the customization requirements, in case a particular functionality requirement is not supported by the existing version of the solution;

v. Resolve gaps by customizing the proposed solution by way of modifications/ enhancements, as necessary.

vi. Facilitate data migration from the existing data of the bank to the new system with consistency. All the details from the migration date till the date of LIVE should also be migrated from the existing data to the proposed Risk Management solutions.

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b) Design of Solution

i. The selected bidder is required to design the Credit and Market Risk Solutions

with the functionalities identified in the Functional Requirements and Technical

Solution Requirements for Credit Risk Management, Market Risk Management,

Integrated Capital Computation, Reporting etc. as detailed in this RFP.

ii. Automated Interfaces required for the solution with other internal systems and

external systems has to be provided by the selected bidder to ensure satisfaction

of the functional and technical requirements. Bidder will be responsible for the

procurement of any tool required to develop the interface. Bidder will document

the entire interface logic and process with change management procedures in

compliance with Bank’s policies and best international practices.

c) Parameterization, Configuration and Customization of Software

i. To assist in bridging the identified data gaps for compliance with Bank’s own policies, RBI guidelines, international best practices and other relevant guidelines on integrated risk management framework.

ii. The Bidder shall be responsible for accuracy of the parameters set in the system according to business needs of the Bank.

iii. The cost of all customizations is required to be included in the Commercial Bid and the Bank will not pay any additional costs for this throughout the term of the contract if the same has been specified as a requirement of the Bank in this RFP. Thus, this is a fixed bid and all necessary customizations based on the functional requirements specified in the RFP is required to be conducted by the Bidder.

iv. Bidder needs to give detailed plan for customization. All customization has to be completed within the project timelines.

v. The Bidder should ensure that the quality assurance and development standards outlined in the development methodology of the solution are adhered to and required functionalities/reports related to same are generated and shared with the Bank team on a regular basis.

vi. Enhancements provided by the Bidder would include changes in the software due to statutory and Regulatory changes and those required due to changes in industry practices in India, international best practices or any other requirements of the Bank related to the above, which will need to be provided at no extra cost to the Bank for the entire period of the contract. It will include, but not limited to, all the functionalities mentioned in the Functional Requirements. Any cost related to such enhancement may be factored in Annexure 12 under “Customisation Cost for 1000 man-days”.

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vii. Before completing this phase, the bidder shall ensure that solution proposed to be implemented/laid down is capable of meeting all functional and technical requirements specified in this RFP.

d) Testing

i. The Bidder will be responsible for conducting system integration testing to verify that all system elements have been properly integrated and that the system performs all its functions.

ii. The Bank will conduct a “User Acceptance Test” (“UAT”) under guidance, review and Supervision of the bidder to ensure that all the functionality required by the Bank as mentioned in this RFP is available and is functioning accurately as per the expectations of the Bank. Consequent to UAT, if some of the functionalities, specified in this RFP are not present in tune with the Bank’s expectations, the bidder shall make appropriate changes.

iii. Bidder will be responsible for setting and maintaining the test environment during the entire period of project implementation. The bidder will ensure that test environment’s configuration and parameterization for conducting the UAT is in line with bank's risk management framework and this RFP’s requirements. The bidder shall ensure that the test environment has the same configuration and functionalities as that of the production environment.

iv. The Bidder will provide the scenarios for UAT and assist in preparing test cases including the test data to support all the Business scenarios. The Bidder should dedicate resources to work with the Bank’s project team for this purpose.

v. The Bidder will assist the Bank in analysing / comparing the results of testing.

vi. Bidder shall provide adequate resources for trouble-shooting during the entire UAT process of the Bank.

vii. The Bidder will be responsible for maintaining appropriate program change control and version control of the system as well as documentation of UAT and change of configuration and parameterization after making changes in the system.

viii. All errors, bugs enhancements/ modifications required during and after testing will be resolved within the overall timelines for implementation.

ix. The Bidder will be responsible for using appropriate tools for logging, managing, resolving and tracking issues and its progress, arising out of testing and ensuring that all issues are addressed in a timely manner to the satisfaction of the Bank and as per requirements mentioned in this RFP.

e) Training

i. The Bidder shall be responsible for training the employees of the Bank in the areas of system administration, implementation, use / operations, management,

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database management, error handling /troubleshooting, etc. of the EWIRM Solution.

ii. Structure of the training program covering locations and number of participants etc. shall be at the discretion of the Bank. The Bank will arrange for the training in Centres / Offices in an area / region as decided by Bank.

iii. The Bank shall not pay any additional amounts to the Bidder for the purpose of creating the training environment. The faculty cost quoted should include travel cost. The bank would provide boarding and lodging facilities in its campus.

iv. The Bidder should provide a detailed training methodology & schedule to the

Bank for review and sign – off prior to commencement of the training.

v. Bidder will also be responsible to develop training and reference materials for all the functionality of the software. Training / reference materials should be designed separately for operational staff / user, IT department and senior management. Training material should comprehensively cover all the functionality of the proposed Credit and Market Risks solution and be written in a user friendly manner with use of graphs, processes flows, screen-shots of the actual system functionality etc.

vi. Bidder should provide Bank specific training material (hard & soft copies) designed considering its requirements in this RFP. Training material so provided will be subject to review and sign-off by the Bank as a project deliverable.

vii. The training should at least cover the following areas:

Functionality available in the solution including logic and methodology of the same;

Auditing techniques including generation of audit trail reports;

Advanced trouble shooting techniques;

Techniques for generation, view and reporting of intermittent results;

Deployment of various processes, risk reporting and identification procedures, Application of controls, analysis procedures provided as part of the solution;

Techniques of Customization, development and configuration of required reports including ad-hoc reports from the solution provided;

Techniques of generating various reports from the solution provided

Training for creating new reports and modify existing reports using the report writing tools

Parameterization methodology

Development and deployment of new functionalities using the proposed solution;

System & Application Administration such as creation of user, user groups, assigning rights, System Information Security Settings etc.

Perform Impact Analysis using the solution;

Business use of the solution

Technical training to be provided to IT staff of the Bank, and this shall include installation, technical architecture, configuration & setup ,

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customization, report generation, backup and recovery, trouble shooting, data synchronisation, file uploads etc.

Log analysis and monitoring

Incidence analysis and reporting

viii. The successful bidder is responsible for conducting training sessions on the below mentioned topics for officers of departments such as Risk Management Department, Finance Department, Accounts Department, Inspection Department, business departments, all other user departments and Regional Offices and Training Establishments for CRMS/ MRMS & capital computation in addition to the above technical trainings to be provided to the operational staff / user, IT department and senior management.

ix. The training may be conducted as per the details given below:

Training Type/ Participants

Days Batches* Minimum number of Trainees

Credit & Market Risks Executive Awareness 1 day 2 20 Core Team 5 days 2 20 End User 5 days 3 25 Technical Users 5 days 1 5

*Batches may run simultaneously or separately as decided by the bank

x. The bidder is expected to provide training, including but not limited to the following aspects:

Credit Risk: Internal Rating, Collateral Management, Stress Testing, Exposure calculation and concentration risk, Early Warning Signals and Default Forecasting, Reporting & MIS etc.

Market Risk: Valuation, VAR calculation & modelling, Stress Testing, Back Testing and Reporting & MIS etc.

Integrated Capital Computation for credit, market and Operational Risks as per BASEL I, II and III and CRAR calculation, Reporting & MIS, etc.

xi. The bidder is also expected to cover all the aspects mentioned in Functional Requirements in the training programme.

xii. In addition to the technical and module-wise trainings mentioned above, the Bank would require the bidder to conduct additional trainings at the discretion of the Bank based on the requirement. The bidder shall quote the amount of these additional trainings in Annexure12.

f) Implementation

i. The proposed solution should cover all the departments/ Regional Offices/ Training Establishments as decided by the Bank and have the capability to scale up for meeting future requirements. The solution should be scalable and capable to handle increased volumes. In the event the Bank adds/changes/updates source/core banking systems in the future the solution should be flexible to handle such new source systems.

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ii. Computation of regulatory capital requirement for Credit, Market Risk under Basel- I, Basel- II and Basel- III.

iii. Generation of required reports (to be specified under functional requirements of RFP)

iv. Setting up of User Acceptance Test Environment, Live System and Disaster Recovery System

v. The Bidder will have to provide the necessary interface not needing manual

intervention to all the applications as required.

vi. At present, the Bank has various solutions running on both on Windows and Linux/AIX/UNIX platforms with ORACLE and MS SQL Server databases. The solution provided shall be capable to interface with these databases directly. Ultimately, the Risk Solutions shall be linked to Enterprise Data Warehouse (as and when operational). The solution should be able to seamlessly interface with upcoming Enterprise Data Warehouse and shall function as a Data Mart to the EDW. The proposed solution should be compatible to interface with the following platforms i.e. Windows, UNIX and Linux with Intel and/or RISC systems.

vii. By means of diagrammatic / pictorial representations, the Bidder should provide complete details of the hardware, software and network architecture of the Solution (module and sub module wise), including source / method of Data capture and transfer, validation, updating and database maintenance for networked branches. In this regard the bidder should also provide logical architecture and high level diagram of hardware/software/network architecture.

viii. The Bidder should assist for implementation of solution in Head Office and Regional Offices as required by the bank. The Bidder should install and commission the solution and integrate with the Bank’s applications at all Regional Offices. The Regional Offices for pilot implementation would be decided by the Bank.

ix. The system should be implemented in all the remaining Regional Offices after its satisfactory working in Head Office and pilot Regional Offices and implementation in all the Regional Offices should be completed within 12 months from the date of signing of contract.

x. The bidder has to give an undertaking to implement the solution at any location

both at HO and ROs.

xi. As part of implementation all data migration (as and when required) from the existing systems to the system proposed will be done by the Bidder. The Bidder shall demonstrate to the satisfaction of the Bank regarding accuracy and comprehensiveness of the data migrated to the proposed system.

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xii. The support of the vendor for installing the software at the initial phase, configuring the same for optimization of resources, deploying software modules, starting and stopping the Web and Application servers, fine tuning the databases for better efficiency, etc., are essential. Therefore, Resource Persons are expected for such activities, viz., Database Administrator, System Administrator, Web / App / Middleware Administrator till the Go Live of the software. The number of such required resources may be clearly indicated in the bid.

xiii. The resource persons of above nature are required till the Go Live of the software, after which, the vendor shall provide “Knowledge Transfer” of the set up with the detailed architecture and diagrams to the ITSM service provider and NABARD. The period of Knowledge Transfer shall be for 6 months from the date of GO Live

g) Annual Technical Support (ATS)/Annual Maintenance Contract (AMC)

i. The AMC/ATS period shall start after GO LIVE for a period of 5 years.

ii. AMC and ATS shall also include the following:

Trouble shooting

Corrective maintenance

Patch Management

Optimization

Preventive maintenance Assistance in up gradation, etc.

iii. The post go-live support services should include, but not be limited to the

following :

System Administration

Helpdesk Management

Software Distribution

Software License Management

Software maintenance

Updates/Upgrades/New releases/New versions/Patch Management

Server Administration

Data Backup and Recovery for Databases

Database Administration activities for Database

Operations Management

Application management including day–end, day-begin, month-end, year–end, periodic and daily backups.

iv. At any point of time during the day a minimum of two resources (L1 and L2)

shall be available onsite during the AMC period. Remote Application Support

will be provided by L3 resource person during this period.

v. Uninterrupted services shall be available to all the HO departments/ Regional

Offices/ Training Establishments through their respective working hours.

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vi. Application Support

L1 Support: A support person who logs calls received from users and able to resolve issues which are very basic in nature. The experience of such persons shall be of not less than 2 to 3 years.

L2 Support: This person should be a technical person who can analyse the ticket raised and resolve the issue. The L2 person would also oversee and review the functioning of the L1 Support. The experience requirement would be 5 to 6 years.

L3 Support: This person should be a functional expert who has full knowledge of the software and would be able to identify issues that are of Change Request and those that needs further customization of the software. He should be a person with at least 10 years’ experience in Risk Management software.

vii. Hardware Support The support persons for DBA / System Administrator / Middleware support should be of minimum 5 years’ experience and should be able to provide the architecture and design diagram of the set up to the ITSM vendor as part of Knowledge Transfer.

viii. The Bidder is expected to develop a methodology for conducting maintenance and support for Bank based on the requirements. The personnel being deployed by the Bidder for critical, key activities should be employees of the Bidder’s firm. In both cases the Bidder is completely responsible and should duly meet the SLA requirements of the Bank

h) Information Security

i. System should have standard input, communication, processing and

output validations and controls. System hardening should be done by

bidder. Access controls at DB, OS, and Application levels should be

ensured in compliance to the Cyber Security and Information Security

Policy of the Bank.

ii. The system should be in compliance with the recommendation of Gopala

Krishna Committee.

4.5. Responsibilities of Bidder

1. The Bidder will conduct a detailed Systems Requirements Study covering the risk, quality, migration, conversion, cutover, resource, change and communication management plan after understanding the requirements from the Bank team for the implementation of the solution and provide a Functional Requirements Specification Manual (“FRSM”) relating to the functionalities mentioned in Functional & Technical Requirements within 15 days from date of acceptance of the Work Order.

2. Once the SRS is signed off from the Bank side, the bidder has to submit a detailed project plan for migration, customization, testing and implementation of the software. Plan should include the full scope of the project as defined in

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the scope of the work. This process should be completed within 15 days from the date of sign off of SRS. On acceptance of such plan by the Bank, the bidder is required to carry out the implementation along with migration and customization as applicable including installation, testing of solution etc.

3. The bidder should gain understanding of the functioning of the existing system from core users of the Bank. He shall prepare a Business Requirement Document (BRD) based on the gap analysis and other requirements of the RFP within 45 days from the date of acceptance of Work Order. The bidder shall undertake to obtain Bank’s approval of the Business requirement documentation (over and above Functional Requirements Specifications and System requirement Specifications) and associated project plans before software customization work commences. The document should provide the plan in detail based on the criticality of the requirements. The bidder shall allow adequate time for review of the above documents by the Bank.

4. The bidder shall Implement the solution which is capable of: a. Supporting estimation of all risk components and capital calculations

(regulatory & economic) as per the guidelines issued by RBI and Basel under

BASEL I and the Standardized approaches of Basel II & III norms. However,

the solution provided should have capabilities to estimate capital

requirements stipulated by RBI under Advanced Approaches of Basel II & III

norms

b. Meeting the Pillar I, II, III and stress testing requirements as per RBI

regulations applicable on AIFI and Basel guidelines on Basel II and Basel III.

c. Supporting all the required statistical, analytical, risk modelling, pricing and

reporting requirements as per Bank’s internal requirements.

d. Performing back testing and stress testing.

e. IFRS9 and ECL calculation.

f. Any other task as per the scope of work mentioned in the RFP.

5. The vendor should help bank to get PAD, EAD and LGD for each pool based on

the INDAS 109 validated through independent third parties. The bank will

identify the third party.

6. The bidder should review and improve the architecture for optimal utilization

of the hardware and submit a report in this regard to Bank.

7. The bidder is required to configure and maintain DR for the whole application.

The bidder is required to replicate all the configuration changes to DR with

respect to webserver and other configurations and replicate the database.

8. Set up, installation and testing of the required software in the hardware

provided by the Bank including its data centres at BKC, Mumbai and Disaster

Recovery Site at Faridabad.

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9. The bidder is required to integrate the proposed solution with the Bank’s Core

Banking System and other systems for all the existing activities.

10. The bidder should provide auditing feature of the application/solution to keep

track of the activities performed by the system & application administrators.

11. Security audit of the application will be carried out by the Banks internal

& External auditors and the observations/recommendations made by the

auditors need to be complied within the time limit as advised by the Bank,

without any additional cost to the Bank.

12. The Application Security Testing, Vulnerability Assessment & Penetration

Testing (VAPT), Application deployment architecture assessment will be carried

out by Independent Security Audit team (nominated by the Bank) and the

bidder has to implement all the security recommendations of the Audit findings.

OS and Patches as and when released are to be tested in the Test Environment

and thereafter it shall be applied in the Production Environment at DC and DR.

13. The application developed or customized should follow a standard

development process to ensure that it meets functional, security, performance

& regulatory requirements of the Bank. The bidder should comply with Banks

Information Security policy in key concern areas relevant to the RFP. Some of

the key areas are as under:-

Responsibilities for data and application privacy and confidentiality.

Password Policy of the Bank

Responsibilities on system and software access control and administration.

14. Ensure that the system is in compliance with RBI requirements for Basel I and

all approaches under Basel II and Basel III and other relevant regulatory

guidelines. Any instances of noncompliance observed will need to be rectified at

no additional cost and well within timelines stipulated by the regulator/bank.

15. Ensure that software solution being supplied should be capable to get integrated

with a Data Ware housing solution; the Bank may go for in future. It needs to

have standard interfacing capabilities.

16. Identify Project Manager, Project Leaders and members of the development

teams with relevant skills. The bidder should identify minimum 1 Project

Manager, 2 application experts, and 2 experts for ETL and data, etc. to be

stationed within the premises of the Bank. The bidder will intimate the Bank if

there is any change in the project team. The bidder will ensure proper back up

of project leaders and manager and the plan should be intimated to the Bank.

The minimum experience of the project team personnel like Project Leader and

Programmers put on work preferably should be 3 to 5 years. Project Manager

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should have 5 to 8 years’ experience in implementation of BASEL II/III. Systems

study and all development activities will have to be undertaken at the Bank’s

locations acceptable to Bank.

17. Provide a resource for a period of 6 months to input/ upload the Bank’s data

including the data uploading from the physical records. All the data available at

the point of time is required to be uploaded/inputted.

18. Ensure that the solution offered should have all components mentioned clearly

with its license requirements

19. Impart training on solution to designated personnel of the Bank and handling

the system and trainers.

20. Incorporate changes in system arising on impact of amendment to regulations/

Bank’s policy at no additional cost and well within timelines stipulated by the

regulator.

21. Assist the Bank in conducting the User Acceptance tests by providing test plans,

scenarios and resolving gaps.

22. Provide complete module wise documentation including logic used, empirical

analysis done, methodology etc. as per regulatory and audit requirements.

23. Provide all statutory, regulatory Management Information System (MIS), adhoc

MIS (including development if needed) and Executive Information System (EIS)

reports as required by the Bank in the desired format as per regulatory and

Bank’s requirements.

24. Ensure that the system meets all