UNION BANK OF INDIA Request for Proposal (RFP) For The [PDF]

UNION BANK OF INDIA

Request for Proposal (RFP) For The Implementation of Integrated Treasury Management System

Issued By: Union Bank of India, Department of Information Technology 1/1A, Technology Center, Adi Shankarcharya Marg, Opp. Powai Lake, Powai, Andheri East, Mumbai – 400072

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Table of Contents 1.

INTRODUCTION ............................................................................................................................... 4

1.1.

Overview ..................................................................................................................................... 4

1.2.

Schedule of Events ...................................................................................................................... 5

1.3.

Current Status of Treasury Management in the Bank ................................................................ 6

1.4.

Broad Scope of Work .................................................................................................................. 8

1.5.

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

1.6.

Disclaimer.................................................................................................................................. 10

2.

INSTRUCTIONS FOR BID SUBMISSION .......................................................................................... 11

2.1

General Instructions.................................................................................................................. 11

2.1.1

Cost of Application/ Bid Document ...................................................................................... 11

2.1.2

Bid Security (E.M.D) .............................................................................................................. 11

2.1.3

Registration of RFP Response ............................................................................................... 12

2.1.4

Request for Additional Information ...................................................................................... 13

2.1.5

Pre-BID Meeting .................................................................................................................... 13

2.1.6

Disqualification ..................................................................................................................... 13

2.1.7

Language of Bid ..................................................................................................................... 14

2.1.8

Period of Validity of Bids ....................................................................................................... 14

2.1.9

Amendment of Bidding Documents...................................................................................... 14

2.1.10

Authorization to Bid .............................................................................................................. 14

2.1.11

Documents constituting the Bid ........................................................................................... 15

2.1.12

Technical Bid ......................................................................................................................... 15

2.2

Price Composition ..................................................................................................................... 16

2.3

Award of contract ..................................................................................................................... 17

2.4

Format and Signing of RFP ........................................................................................................ 17

2.5

RFP Clarifications....................................................................................................................... 17

2.6

Payment Terms ......................................................................................................................... 18

2.7

Additional Instructions for Bidders ........................................................................................... 18

3.

EVALUATION METHODOLOGY ...................................................................................................... 24

3.1

Opening of Bids ......................................................................................................................... 24

3.2

Eligibility Criteria ....................................................................................................................... 25

3.3

Evaluation Criteria..................................................................................................................... 26

3.4

Other Terms & Conditions ........................................................................................................ 31

3.5

General Instructions.................................................................................................................. 32

4.

DETAILED FUNCTIONAL AND TECHNICAL REQUIREMENTS .......................................................... 35 2

4.1

General Requirements .............................................................................................................. 35

4.2

Functional Requirements .......................................................................................................... 42

4.3

Mid office and Market Risk Management Requirements......................................................... 56

4.3.1

Mid Office Requirements: ..................................................................................................... 56

4.3.2

Market Risk Requirements:................................................................................................... 61

4.4

Back- Office Requirements ....................................................................................................... 64

4.5

Products and Instruments Requirement................................................................................... 81

4.6

Derivatives Requirements ......................................................................................................... 85

4.7

Technical Requirements............................................................................................................ 91

4.8

Reports ...................................................................................................................................... 93

Annexure-A (Acceptance of Terms and Conditions) ........................................................................... 112 Annexure-B (BID Form) ..................................................................................................................... 114 Annexure-C (Bidder’s Profile Format) ................................................................................................. 116 Annexure-D (Documents for Eligibility Criteria) ................................................................................. 119 Annexure-E (Letter of Authorization for attending RFP/Tender Opening)......................................... 122 Annexure-E1 (Un-priced Bill of Material)............................................................................................ 123 Annexure-E2 (Bill of Material)............................................................................................................ 124 Annexure-I (Reference Site Details) .................................................................................................... 125 Annexure-J (Financial Position of Bidder for last 3 financial years (in Rs. Crores) ).......................... 126 Annexure-K (Implementation Team Profile)....................................................................................... 127 Annexure-L (Training Requirements) .................................................................................................. 129 Annexure-M (Project Management Methodology) ............................................................................ 130 Annexure-N (Bank Guarantee for EMD) ............................................................................................. 132 Annexure-O (Project Timelines) .......................................................................................................... 134 Annexure-P (Manufacturers’ / Producers’/ Authorization Form) ...................................................... 135 Annexure-Q (Format of Bank Guarantee)........................................................................................... 136

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1. INTRODUCTION 1.1.

Overview

About the Bank Union Bank of India (hereinafter referred to as ‘the bank’ or ‘UBI’ or “Bank”) is a leading, innovative commercial Bank, with a proactive approach to address the changing needs of the society. This has resulted in a wide gamut of products and services, made available to its valuable clientele in catering to the smallest of their needs. It is one of the pioneer public sector banks, which launched Core Banking Solution in 2002. Under this solution umbrella, all Branches and ATMs of the Bank have been networked, with online Tele-banking and Internet banking facility made available to all its Core Banking Customers - Individual as well as Corporates. The Bank had also launched its Mobile Banking Facility. Regular banking services apart, the customer can also avail of a variety of other value-added services like Cash Management Service, Insurance, Mutual Funds, Credit Cards and De-mat etc. Union bank of India, having its registered office in Mumbai, has more than 4000 branches, 3 Foreign Branches and extension counters which are spread across various geographic locations in the country. Purpose of this document In order to create/enhance and implement an Integrated Treasury Management System, UNION BANK OF INDIA hereby invite responses from the established and eligible entities (hereinafter referred to as “Respondent” or “Bidder” or “Vendor”) to provide the deliverables, more particularly described hereinafter in this document in accordance with the terms and conditions described herein. The Document may be obtained from the Bank at the communication address given below or can be downloaded from Bank’s Website www.unionbankofindia.co.in or www.tenders.gov.in and the response should be submitted to the office of: General Manager (I.T.), Union Bank of India, Department of Information Technology, 1/1A Technology Center, Adi Shankarcharya Marg, Opp. Powai Lake, Powai, Andheri (E), Mumbai– 400072

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1.2. Schedule of Events

Commencement of Issue of 25.01.2015 11:00 AM RFP Fees for RFP document (non- Rs. 25,000/- (Rupees Twenty five Thousand only) refundable) Earnest (EMD)

Money

Deposit Rs. 7,50,000/- (Rupees Seven Lacs Fifty Thousand Only)

Pre - bid Meeting Date and 04.02.2015 03:30 PM Venue Union Bank Bhavan, 3rd Floor, Treasury Department 239,Vidhan Bhavan Marg, Nariman Point, Mumbai-400021. Last date for query 10.02.2015 03:30 PM submission All communications regarding points / queries requiring clarifications shall be given in writing or by e-mail to the officials whose particulars have been given below. Last date and Time for 04.03.2015 5:00 PM submission of RFP Date and Time for Opening 04.03.2015 5:10 PM of RFPs Contact Details: Address for Communication General Manager(I.T.), and submission of RFP: Union Bank of India, 1/1A, Technology Center, Adi Shankaracharya Marg, Opp. Powai Lake, Powai, Andheri(E), Mumbai– 400072 Name of Contact Person:

1. Mr. Harish Bhatia (Chief Manager) Email: [email protected] Phone: 022‐22892355 2. Mr. C G Narayanan (Chief Manager) Email: [email protected] Phone: 022‐ 25710545

Note: Bank reserves the right to change the dates mentioned in this document, which will be communicated to the bidders through Bank’s website.

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1.3. Current Status of Treasury Management in the Bank The Bank has implemented Finacle as its Core Banking System from M/s. Infosys across all the domestic and overseas branches. Bank has put in place Kastle software for Treasury Operations. The Software was purchased from M/s ICICI InfoTech Ltd (now known as 3I InfoTech Ltd) and was implemented in February, 2005. The package is catering to Domestic, Forex and Derivatives Operations of Treasury. Details of the Kastle software Architecture

:

Two-Tier Client-Server based Architecture

Front-End

:

Power Builder

Database

:

Oracle 10g

Hardware Configuration Details

:

Win 2008 Server

At present the bank has implemented Finacle Treasury solution at its overseas branches in Hongkong , Dubai and Belgium from M/s Infosys. The Market Risk solution is not implemented for overseas branches at present. New Treasury System should provide interface for pulling the data directly from the system of overseas branches so as to compute various risk variable on a consolidated data for bank as a whole. Bank is in the process of opening two overseas branches Sydney and China. Integration and interfaces of Kastle to other modules and software are as below. 1. 2. 3. 4. 5.

CBS – Finacle (present version 7.0.25) Management Information System(MIS) including Automated Data Flow Matched Fund Transfer Pricing (MFTP), ALM of OFSAA. SWIFT network through Turbo Swift. Kastle Risk Management for Market Risk, Capital charge and VAR calculation under Standardized Measurement Method (SMM)/ Internal Model Approach Under Basel II/III (IMA) 6. Presently SMM have been computed manually by collecting the data from Treasury as well as overseas branches & we are in the process of migrating to IMA. The implementation of Oracle GL, Enterprise Data Warehouse (Teradata Database) and Integrated Risk Management (Operations and Control) from SAS is in progress. The proposed solution needs to be integrated with these systems also along with abovementioned systems including CBS and Treasury of foreign branches At Present the Bank Wide GL is coming from Finacle Core, other sources like domestic treasury, overseas finacle & Treasury. The internal Closing Package is used for consolidation.

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The following Products/Modules/Functionalities are presently handled through KASTLE. 1. PRODUCTS A. FOREX PRODUCTS: FX Spot and forward, FX Swap, FX bills, Depo deals (placement / Borrowings), Merchant Forward contracts and other Internal Position Transfers and its valuation based on nature of trade etc. B.MONEY MARKET PRODUCTS Call money, notice money, term money, Collateralized Borrowing and Lending Obligation, Commercial paper, certificate of deposit, treasury bills, interbank repo and reverse repo, LAF repo and reverse repo, Marginal Standing Facility, term repo etc. C. DEBT MARKET PRODUCTS Central Government securities (G-Sec), State Development Loans (SDL), Treasury Bills (TB), Bonds and debentures (taxable and tax free), zero coupon bonds, collateralized bonds and debentures, Rural Infrastructure Development Fund, Preference Shares etc. D.CAPITAL MARKET PRODUCTS Investment in both primary and secondary markets of shares E. DERIVATIVE PRODUCTS Currency options, Interest rate swaps, Forward Rate Agreement, Cross and Currency Swaps., Coupon only Swaps, Principal only Swaps, IRD-Futures, Currency Futures, Interest rate futures etc. F.OTHER PRODUCTS Mutual funds, venture capitals, Security receipts, Foreign equity investments, subsidiary and joint ventures etc. 2. MARKET RISK (Mid Office) 1. Limits Monitoring 2. Open Positions, MTM, P&L 3. Rates Scan 4. Stress Testing 5. Risk Parameters like VAR, PV01, Duration, M Duration, Convexity, Portfolio Beta, Option Greeks etc 6. Hedge Efficiency 7. Capital Charge, SMM, IMA, Back Testing, CVA, Stress testing. 8. ALM Reports and Bucketing 7

9. Disclosure, IRR, MAP and SIR 3. NOSTRO A/C ‘S RECONCILIATION MODULE. 4. INTERFACES WITH DEAL PROCESS. CCIL’S-FX CLEAR, CITI-FX ALL, AUTOBAHN, JPMORGAN, RMDS, RTNS, 360T, SWIFT, NDS-CALL, NDS-OM, CCIL-CHROMES, CCIL-CBLO, NG-RTGS 5. INTERFACE WITH RETAD FOR MERCHANT TRANSACTION Export, Import, inward remittances, EEFC, PCFC, FDBD transactions and MF Contracts from B category branches 6. INTERFACE WITH NEWSWIRE (Cogencis) FOR FOREX, EQUITY, G-SEC RATES, YIELD CURVES. 7. CBS INTERFACE. For inter branch fund transfer with Treasury (Digital Authority Cheques -Bank’s Nomenclature) (INWARD, OUTWARD) AND GL OUT PUT. 8. CSGL MODULE. Constituents’ Subsidiary General (CSGL) Account operations 9. FCNR / RFC Deposit MODULE. 10. INTERFACE WITH MIS. In addition to the above products and features, the system should be able to achieve the requirements mentioned in the scope below. 1.4. Broad Scope of Work Detailed scope of work for the proposed transformational engagement is listed below. The scope of assignment includes but not limited to:  The Bank is looking for a complete end-to-end solution for Implementation of Integrated Treasury Management System. The proposal should include Supply, Installation, Implementation, Customization, Integration, Migration, Testing, Training, Onsite Support and Maintenance of all necessary Software, RDBMS and other utilities etc. at primary site – Treasury Branch Mumbai– and its Disaster Recovery Site at Bangalore/Ernakulam.  The solution should be web or client server based. In case of Client -Server based the bidder should propose with Application Virtualisation (Ex. Citrix Technology).

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 Customization of the proposed solution to meet the Bank’s Functional, Operational Risk Management and MIS requirements of Treasury with all required interfaces.  Integrate the proposed solution with Bank’s Core Banking Solution Domestic and foreign branches, Subsidiary with necessary interface.  Proposed Solution should also provide interface with Enterprise Data Warehouse, Integrated Risk Management System, MFTP, MIS, Oracle GL, SWIFT etc. Bidder has to integrate the proposed solution once these solutions are implemented. EDW, Oracle GL and IRM are in progress and others are already live.  Ability to scale up the services at multiple centers in India and overseas.  The proposed solution should cater to the needs of our Global Treasury [Domestic + Overseas Centers + Subsidiaries + Sponsored Banks] requirements and other Statutory, and Regulatory requirements of present and immediate future of the Bank.  The proposed solution should be flexible to provide for extensive parameterization.  The proposed solution should maintain history of all additions, modifications, deletions and parameter changes etc. as Audit Trails.  Ability to rapidly generate ad-hoc reports with an easy to use report writing Tool / wizard.  The proposed solution should provide for Maker and Checker concept for transaction processing and authorization. Solution should also provide for a workflow to facilitate various levels of authorization.  Proposed Solution should provide for access control and user management functions.  Providing application maintenance for error fix, patch management, upgradation, additions / modifications in the application to cater changes to data sources and /or new reporting requirements during warranty period of one year as well as during the post warranty period. Version up gradation will be covered under ATS. However Bank will pay the implementation charges to upgrade the version of the solution.  The bidder should study the requirements of the bank including customization and provide a Systems Requirement Study (SRS) report to the bank.  The bidder should either provide the source code itself with necessary documentation or arrange to keep it under escrow arrangement.  The bidder will be required to implement all three environments for the solution i.e. Production, DR, Development/ Test.  The bidder will be required to provide Post implementation, Onsite support required during office hours Monday to Saturday (9:00 AM to 11:00 PM) and also during working holidays. Duties of onsite engineer includes configuration changes, version up gradations, performance monitoring, trouble shooting, Bug Fixing, patch installation and liaison with Bank official for various support issues etc. and assist Bank official in switching to the DR site in case of system failure and Conduct DR drills in conjunction with the Bank.  Solution should support all industry specific standard format i.e. ISO 20022, ISO 8583, SWIFT messaging formats.  The Bidder should provide support at Mumbai, Bangalore/ Ernakulam. Onsite support will be at Mumbai.

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 System should support RBI’s directives and guidelines pertaining to Treasury & Risk Management issued time to time.  The proposed solution should provide audit reports and Tools for the Bank’s internal/concurrent/statutory/SEBI/CCIL/IDRBT/RBI audit/inspections.  The vendor has to migrate complete data (Mumbai as well as Ernakulum) from Kastle to the proposed solution.  The solution should support DR with proper replication.  Closure of all VAPT / IS AUDIT observation within time frame stipulated by Bank without any additional cost to the Bank.  The bidder has to comply with RBI guidelines/directives upto go live. Thereafter it will be covered as a part of ATS through Change request.  Finacle treasury solution is not to be replaced in existing overseas branches.  Data base size at present approx. 30 GB (Mumbai); 10 GB (Ernakulum). Data for last ten years is to be migrated to new system.  Hardware and Operating System is not in the scope of RFP. However bidder has to quote Middleware, Environmental and other software if any, in the TCO. 1.5. Invitation for Bids UBI invites Request for Proposal (RFP) for implementation of Integrated Treasury Management. The responses to the queries will be put on the website after committee’s approval. The Bidders will, by responding to the Bank’s RFP document, be deemed to have accepted the terms as stated in this RFP document. 1.6. Disclaimer The information contained in this Request for Proposal (RFP) document for implementation of Integrated Treasury Management System, 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. The RFP document contains statements derived from information that is believed to be true and reliable at the date obtained but does not purport to provide all of the information that may be necessary or desirable to enable an intending contracting party to determine whether or not to enter into a contract or arrangement with Bank in relation to the provision of services. The RFP document is not a recommendation, offer or invitation to enter into a contract, agreement or any other arrangement, in respect of the services. The provision of the services is subject to observance of selection process and appropriate documentation being agreed between the Bank and any successful Bidder as identified by the Bank, after completion of the selection process as detailed in this document. No contractual obligation whatsoever shall arise from the RFP process unless and until a formal contract is signed and executed by duly authorized officers of Union Bank of India with the Bidder. The purpose of this RFP is to provide the Bidder(s) with information to assist the formulation of their proposals. This RFP does not claim to contain all the information each Bidder may require. 10

Each Bidder should conduct their own investigations and analysis and should check the accuracy, reliability and completeness of the information in this RFP and where necessary obtain independent advice. UBI makes no representation or warranty and shall incur no liability under any law, statute, rules or regulations as to the accuracy, reliability or completeness of this RFP. UBI may in its absolute discretion, but without being under any obligation to do so, update, amend or supplement the information in this RFP. 2. INSTRUCTIONS FOR BID SUBMISSION 2.1 General Instructions 2.1.1 Cost of Application/ Bid Document Application fee of Rs. 25,000/‐ (Rupees Twenty Five Thousand only) by way of Demand Draft/ Pay Order favouring Union Bank of India, payable at Mumbai, which is non‐refundable, must be submitted separately along with RFP response. The Bank may, at its discretion, reject any Bidder where the application money has not been furnished with the RFP response. The RFP documents can be downloaded from Bank’s Website and Govt. Web site. The cost of RFP should be deposited at the time of submitting the responses. All costs and expenses (whether in terms of time or material or money) incurred by the Recipient/ Bidder in any way associated with the development, preparation and submission of responses, including but not limited to attendance at meetings, discussions, demonstrations, etc. and providing any additional information required by the Bank, will be borne entirely and exclusively by the Bidder. 2.1.2 Bid Security (E.M.D) 1. The Bidder shall furnish, as part of its Bid, a Bid security in the format as mentioned in Annexure-N, Bank Guarantee for EMD. 2. The Bid security is required to protect the Bank against the risk of Bidder’s conduct, which would warrant the security’s forfeiture. 3. The Bid security shall be denominated in Indian Rupees and shall be one of the following forms: a. Bank guarantee for Rs. 7,50,000/- (Rupees Seven Lacs Fifty Thousand Only) issued by a Private sector / Public Sector bank in India (other than Union Bank of India), acceptable to REQUEST FOR PROPOSAL (RFP) for Implementation of Integrated Treasury Management: as per format provided in the Annexure-N, Bank Guarantee for EMD., valid for One Hundred Eighty (180) days with an action period of 30 days beyond the validity of the Bid. OR b. Banker’s Cheque / Demand Draft, issued by a Private Sector / Public sector Bank in India , drawn in favour of Union Bank of India payable at Mumbai and 11

valid for a period of 90 days for a sum of Rs. 7,50,000/- (Rupees Seven Lacs Fifty Thousand Only) No interest will be payable on EMD / Bid Security. 4. Any Bid not secured as detailed in above, will be rejected by the Bank, as nonresponsive. 5. Unsuccessful Bidders’ Bid security will be discharged or returned after completion of tender process. 6. The successful Bidder’s Bid security will be discharged upon the Bidder signing the Contract and furnishing the performance bank guarantee as per the format mentioned in Annexure-Q, Performance Bank Guarantee. 7. Bank reserves the right to forfeit the Bid security for the following reasons: a. If a Bidder withdraws its Bid during the period of Bid validity specified by the Bidder on the Bid Form or b. If a Bidder makes any statement or encloses any form which turns out to be false / incorrect at any time prior to signing of Contract or c. In the case of a successful Bidder, if the Bidder fails:‐ i. To sign the Contract; OR ii. To furnish Performance Bank Guarantee as mentioned in Performance Bank Guarantee herein. 2.1.3 Registration of RFP Response Registration of RFP response will be affected by the Bank by making an entry in a separate register kept for the purpose upon Bank receiving the RFP response in the above manner. The registration must contain all documents, information, and details required by this RFP. The submission should be in the format outlined in this RFP and should be submitted only through hand delivery. If the submission to this RFP does not include all the documents and information required or is incomplete or submission is through Fax mode, the RFP is liable to be summarily rejected. All submissions, including any accompanying documents, will become the property of Bank. The Recipient shall be deemed to have licensed, and granted all rights to the Bank to reproduce the whole or any portion of their submission for the purpose of evaluation, to disclose the contents of the submission to other Recipients who have registered a submission and to disclose and/or use the contents of the submission as the basis for any resulting RFP process, notwithstanding any copyright or other intellectual property right of the Recipient that may subsist in the submission or accompanying documents. RFP responses will remain valid and open for evaluation for a period of at least six (6) months from the RFP closing date.

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2.1.4 Request for Additional Information Recipients/ Bidders are required to direct all communications for any clarification related to this RFP, to the designated Bank officials and must communicate the same. All queries relating to the RFP, technical or otherwise, must be in writing only. The Bank will try to reply, without any obligation in respect thereof, every reasonable query raised by the Recipients in the manner specified. However, the Bank will not answer any communication reaching the bank later than date mentioned in the Schedule of Events, this being the last date to receive clarifications. The Bank may in its absolute discretion seek, but under no obligation to seek, additional information or material from any Bidders after the RFP closes and all such information and material provided must be taken to form part of that Bidder’s response. Bidders should invariably provide details of their email addresses as responses to queries will be provided to all Bidders via email. The Bank may in its sole and absolute discretion engage in discussion with any bidder (or simultaneously with more than one Bidder) after the RFP closes to clarify any response. 2.1.5 Pre-BID Meeting A Pre-bid meeting will be arranged by the Bank as per the “Schedule of Events” provided in this document. The Bank will endeavour to respond to the queries raised by the prospective bidders. The Bank will respond to the queries there itself or it may notify the response to the queries considered relevant on its website for the benefit of all. However, the Bank, at its sole discretion, reserves the right whether to respond or not to all queries received from the prospective Respondent(s) or provide written clarifications. No oral response to a clarification request shall be construed as amending this document. Nothing contained herein shall be taken or read as compelling or requiring the Bank to respond to any questions or to provide any clarifications. No extension of any deadline will be granted on the basis or grounds that the Bank has not responded to any question or provided any clarification. No further communication as regard to the venue and time for opening of responses will be entertained. In case of any change, the Bank will notify the revised dates on its website, if modification is made prior to last date of submission of response. 2.1.6 Disqualification Any form of canvassing/ lobbying/ influence/ query regarding short listing, status etc. will result in a disqualification.

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2.1.7 Language of Bid The language of the bid response and any communication with the Bank must be in written English only. Supporting documents provided with the RFP response can be in another language so long as it is accompanied by an attested translation in English, in which case, for purpose of evaluation of the bids, the English translation will govern. 2.1.8 Period of Validity of Bids Bids should remain valid for the period of at least 90 days from the last date for submission of bid prescribed by the Bank. A bid valid for a shorter period shall be rejected by the Bank as non‐responsive. In case the last date of submission of bids is extended, the Bidder shall ensure that validity of bid is reckoned from modified date for submission. Further extension of the validity of the bid will be decided by the bank in case of need. 2.1.9 Amendment of Bidding Documents Prior to the last date for bid‐submission, the Bank may, for any reason, whether at its own initiative or in response to clarification(s) sought from the prospective Bidders, modify the RFP contents/ covenants by amendment. Clarification /amendment, if any, will be notified on Bank’s website. No individual communication would be made in this respect. 2.1.10 Authorization to Bid The proposal/ bid being submitted would be binding on the Bidder. As such, it is necessary that authorized personnel of the firm or organization sign the bid documents. The designated personnel should be authorized by a senior official of the organization having authority. a. All pages of the bid, shall be initialed by the person or persons signing the bid b. Bid form shall be signed in full & official seal affixed. c. Any inter‐lineation, erasure or overwriting shall be valid only if they are initialed by the person or persons signing the Bid. d. All such initials shall be supported by a rubber stamp impression of the Bidder’s firm.

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e. The proposal must be accompanied with an undertaking letter duly signed by the designated personnel providing a bid commitment. The letter should also indicate the complete name and designation of the designated personnel. 2.1.11 Documents constituting the Bid The Bid prepared by the Bidder should comprise the following components:  Technical Bid – Part I: Separate sealed cover with superscriptions as “Technical Bid– for Implementation of Integrated Treasury Management System”. Both hard copy and soft copy should be provided in single cover.  Commercial Bid – Part II: Separate sealed cover with superscriptions as “Commercial Bid – for Implementation of Integrated Treasury Management System.  Any bid document not conforming to any one of the above terms will be rejected.  Bidders, who have not paid the cost of the RFP, will not be permitted to participate in the bid. 2.1.12 Technical Bid The bidders are expected to examine all terms and instructions included in the documents. Failure to provide all requested information will be at bidder’s own risk and may result in the rejection of the proposal. The following documents are to be submitted:       

Bid security (Earnest Money Deposit) Cost of RFP Document Annexure-A : Letter of Authorization to Bid Annexure-B : Bid form (duly filled) Annexure-C : Bidder Profile (duly filled) Annexure-D : Documents for eligibility criteria (duly filled) Annexure-E1: Un-priced Bill of Material. The technical proposal must include un-priced indicative commercial bid. This is to ensure that the price bid is in the format prescribed by the Bank. In case it is not in the prescribed format, it is liable to be rejected  Compliance with all Functional and Technical Requirement (Section 4. Detailed Functional and Technical Requirement ) 4.1 4.2 4.3 4.4 4.5 4.6 4.7

General Requirements Functional Requirements Mid office and Market Risk Management Requirements Back- Office Requirements Products and Instruments Requirement Derivatives Requirements Technical Requirements 15

4.8 Reports  Annexure-I Reference Site Details  Detail technical specifications/brochures of the required Hardware, OS or other software/utility  Details of bandwidth requirement for data replication between Primary Site at Treasury Branch and Disaster Recovery Site at Bangalore should be clearly mentioned.  Detailed Architecture of the proposed solution with various features/functions of the system/sub-system including fail-over methodology/strategy at both Primary & DR Site.  The bidder should submit all the specifications with their compliance level as applicable and remarks and other requirements given in the Bid Document and Scope of Work.  Documents and brochures pertaining to all products including future road maps that will be deployed in the proposed solution. 2.2 Price Composition a. The commercial bid should be quoted in the commercial bid form attached to this bid (Annexure-E2). b. The prices should be firm and not dependent on any variable factors and expressed in Indian Rupees. c. The prices should be inclusive of all costs including taxes, duties, levies etc to be charged. The bidder should mention the base cost and the relevant taxes separately in the TCO. Any upward / downward change in Service Tax, custom, Govt. duties and new taxes if any will be to the account of Bank. If any changes from the quoted price, the vendor will produce the respective notification of such changes. d. Octroi / Road tax, if any will be paid extra as per the actual on production of original receipt. e. The price quoted should be inclusive of following: Cost of migration, implementation and customization of Treasury Management System as per Banks Requirement. Installation, Commissioning & Implementation charges if any. Cost of customization of additional modules if any. Cost of Onsite Support of resident engineer for 1 Year from date of going live. (The same can be extended up to 5 year at the same rate offered for the first year). For arriving at TCO, one year cost of onsite support engineer will be considered. ATS for 1 year after the warranty period of 1 year from Go live (The same can be extended up to 5 year at the same rate offered for the first year). ATS will be Paid Quarterly in Advance.

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2.3 Award of contract 

On completion of evaluation of commercial bids, Bank will determine the L1 bidder and contract will be awarded to lowest bidder.

  

The selected Bidder will sign the Contract/Agreement with the Bank. Purchase order (PO) issued will be an annexure for such Contract/Agreement. If L1 Vendor fails to execute the order, Bank will be free to award the contract to L2 Vendor provided L2 matches L1 price and if L2 does not agree, it will be awarded to L3 subject to L3 matching L1 price and in that order.

2.4 Format and Signing of RFP 

 

Interested bidder(s) are requested to submit their offers, giving full particulars as per the prescribed formats in sealed covers duly super-scribed “Request For Proposal for Implementation of Integrated Treasury Management System” and hand delivered at the address mentioned above. All the documents must be authenticated by the authorized person signature. The Bank may ask the bidders to provide additional copies besides original RFP as required. The RFP shall contain no interlineations, erasures or overwriting except as necessary to correct errors made by the bidder in which case such corrections shall be signed by the person or persons signing the RFP. All pages of the original RFP, except for un-amended printed literatures, shall be signed by the person or persons signing the RFP.

2.5 RFP Clarifications Queries / clarifications will not be entertained over the phone. All queries and clarifications must be sought in writing or sent to [email protected] and [email protected] with subject “RFP Clarifications – Integrated Treasury Management System” as per the date given in the schedule of events of this RFP document. The Bidder is requested to collate and submit queries together to seek clarifications / responses from Bank. The Bidder should ensure that all the queries and clarifications are communicated in writing on or before the date given in the schedule of events of this RFP document. Bidders are requested to visit our Banks website for clarifications and other communications. Key Guidelines: 1. Bidder’s proposal should strictly conform to the specifications. 2. Proposals not conforming to the specifications will be rejected subject to the Bank’s discretion. Any incomplete or ambiguous terms / conditions / quotes may result in disqualification of the offer at bank’s discretion. The Bidder has to offer specific remarks 17

3. 4. 5. 6. 7.

for technical requirements and clearly confirm compliance. Any deviations on technical requirements should be clearly informed in Comments column. Bank is not bound to evaluate the deviations mentioned at any other section of the bid. For supplementary information a separate sheet should be used. All pages should be numbered (like 1/xxx, 2/xxx where xxx is last page number of Bid document) and signed under the company seal. Technical Bid documents are to be properly filed in a box‐ file. Union Bank reserves the right to reject any or all proposals. Similarly, it reserves the right not to include any vendor in the final short‐list.

2.6 Payment Terms The terms of payment will be as follows: a. No advance payment against purchase order. b. No Octroi / Entry Tax will be paid after payment of final milestone. . c. Payment will be made on the following basis: S.No.

Milestone

Payment

1.

On SRS (System Requirement Study) Sign-Off

25%

2.

On Successful installation and customization of Solution On UAT signoff After Migration, Parallel Run, Go Live, and Training After 3 months of Successful Go live After a period of 1 year from Go live or against furnishing a performance Bank Guarantee of a scheduled commercial Bank (other than Union Bank of India) for the equal amount. Total

20%

3. 4. 5. 6.

10% 20% 15% 10%

100%

Amount for Annual Technical Support (ATS) a. The ATS rate for the Software shall be valid for the period of 5 years after Warranty Period of One Year. b. ATS will be paid quarterly in Advance. 2.7

Additional Instructions for Bidders

Successful bidder shall indemnify, protect and save the Bank and hold the Bank harmless from and against all claims, losses, costs, damages, expenses, action suits and other proceedings, (including reasonable attorney fees), relating to or resulting directly or indirectly from : 18

o An act or omission of the Successful bidder, its employees, its agents, or employees of the consortium in the performance of the services provided by this contract, o Breach of any of the terms of this RFP or breach of any representation by the Successful bidder, o Use of the deliverables and or services provided by the Successful bidder, o Infringement of any patent, trademarks copyrights etc. or such other statutory infringements in respect of all components provided to fulfill the scope of this project. Successful bidder shall further indemnify the Bank against any loss or damage to the Bank's premises or property, Bank's data, direct financial loss, loss of life, etc., due to the acts of the Successful bidder's employees or representatives. The Successful bidder shall further indemnify the Bank against any loss or damage arising out of loss of data, non-payment of taxes/duties/levies/Octroi etc, claims of infringement of third- party copyright, patents, or other intellectual property, and third-party claims on the Bank for malfunctioning of the equipment or software or deliverables at all points of time, provided however, a. the Bank notifies the successful bidder in writing in a reasonable time frame on being aware of such claim, b. the Successful bidder has sole control of defense and all related settlement negotiations, c. the Bank provides the Successful bidder with the assistance, information and authority reasonably necessary to perform the above, and d. The Bank does not make any statement or comments or representations about the claim without prior written consent of the Successful bidder, except under due process of law or order of the court. o It is clarified that the successful bidder shall in no event enter into a settlement, compromise or make any statement (including failure to take appropriate steps) that may be detrimental to the Bank's (and/or its customers, users and service providers) rights, interest and reputation. o Successful bidder shall be responsible for any loss of data, loss of life, etc, due to acts of Successful bidder's representatives, and not just arising out of gross negligence or misconduct, etc, as such liabilities pose significant risk. o Successful bidder should take full responsibility for its and its employee’s actions. Further, since the Bank's data could be integrated/ used under Successful bidder provided software, the Successful bidder should be responsible for loss/compromise or damage to Bank's data. o The successful bidder should indemnify the Bank (including its employees, directors or representatives) from and against claims, losses, and liabilities arising from: a. Non-compliance of the successful bidder with Laws / Governmental Requirements b. IP infringement under any laws including Copyrights Act 1957 & IT Act 2000 and such other statutory acts and amendments thereto. c. Negligence and misconduct of the Successful bidder , its employees, and agents d. Breach of any terms of RFP. e. Act or omission in performance of service. f. Loss of data due to any of the reasons mentioned above 19

o Indemnity would be limited to the damages as awarded by arbitrator / court for direct claim and shall exclude indirect, consequential and incidental damages provided that the claims against users and service providers of the Bank and also claim by and against customers would be considered as "direct" claim. The successful bidder shall not indemnify the Bank for (i) Any loss of profits, revenue, or anticipated savings or (ii) Any consequential or indirect loss or damage caused. o In the event that the Bank is called as a defendant for IPR infringement of patent, trademark or industrial design rights arising from use of any of the components of the supplied solution, the Successful bidder on its own expense will undertake to defend the Bank. o It will be the Successful bidder's responsibility to rapidly do away with such thirdparty claims. The Successful bidder will also pay any compensation arising from the infringement claims and the Bank will in no manner be responsible for such payments. In addition, the Successful bidder will bear all the related expenses and legal fees. o On its part, the Bank will immediately relay to the Successful bidder any such claims and offer assistance within reasonable limits to rid the claim. o The Successful bidder must undertake to indemnify that all the components delivered are free of defects, are brand new and original. If at some stage it is discovered that the components do not meet these criteria, the Bank has the right to cancel the order and the Successful bidder will have to refund the total amount received from the Bank along with the interest and separate penalties. Similar conditions apply to software as well the system software must be licensed and original. Confidentiality 

 

The successful bidder either during the term or after the expiration of this contract shall not disclose any proprietary or confidential information relating to the project, the services, this contract, or the Client’s business or operations without the prior written consent of the Bank. Reporting obligations - The successful bidder shall submit to the bank the reports and other accounts specified in deliverables within the time limit set forth. Selected bidder will have to sign a legal Non Disclosure Agreement with the Bank before starting the project.

Deliverables Successful bidder to submit the following deliverables:  Complete migration strategy, customization and implementation plan  Complete architecture of the solution  System Requirements Study (SRS) Document for implementation and customization.  Project Plan and Schedule on completion of SRS.  Disaster recovery infrastructure and business continuity management plan covering well defined Recovery Point Objective and Recovery Time Objective.  Interfaces/tools required to migrate data from legacy system  User Acceptance Test Plan and Test Cases 20



   

Providing comprehensive documentation of the application including the application architecture, description of the interfaces, the data model, database table structure, Data Flow Diagrams, complete description of the data elements (metadata), user manual, system manual etc. Training All plans, drawings, specifications, designs, reports and other documents submitted by the successful bidder shall become and remain the property of the Bank. Delivery of required licenses must be as per the licensing policy of the specified product During the time of implementation, documents for all customization done should be delivered to the bank.

Liquidated Damages If Successful bidder fails to deliver any or all of the Service(s) / Systems or perform the Services within the time period(s) specified in the RFP/Contract / Agreement, BANK shall, without prejudice to its other rights and remedies under and in accordance with the RFP/Contract / Agreement, levy Liquidated Damages (LD) from payments due to the Successful bidder. For calculation of LD, 1. The contract price for calculation of LD is TCO excluding AMC/ATS charges and on-site support charges. 2. The overall LD during implementation will be to a maximum of 5% of the contract value. 3. LD for delay in completion of the Service(s) for each week of delay beyond the scheduled completion date or part thereof will be a sum equivalent to 0.5% of Contract price per week. In case of undue delay beyond a period of 15 days after attaining the maximum penalty of 5% during implementation, Bank may consider termination of the contract or purchase order. 4. Part of week will be considered as full week. 5. Bank can deduct the amount of liquidated damages from any money belonging to the Successful bidder in its hands (which includes BANK’s right to claim such amount against Successful bidder’s Performance Bank Guarantee) or which may become due to the Successful bidder. 6. Any such recovery or liquidated damages shall not in any way relieve the Successful bidder from any of its obligations to complete the works / service(s) or from any other obligations and liabilities under the Contract/Agreement/Purchase Order. 7. Bank reserves the right to condone the delay, if it is not attributable to the Successful bidder. Termination for Default The Bank, without prejudice to any other remedy for breach of contract, by written notice of default sent to the Successful bidder, may terminate this Contract in whole or in part

21



   

If the Successful bidder fails to deliver any or all of the deliverables within the period(s) specified in the Contract, or within any extension thereof granted by the Bank; or; If the Successful bidder fails to perform any other obligation(s) under the Contract, If the Successful bidder, in the judgment of the Bank has engaged in corrupt or fraudulent practices in competing for or in executing the contract, When the value of the liquidated damages exceed 5% of the contract amount, In the event the Bank terminates the Contract in whole or in part, the Bank may procure, upon such terms and in such manner as it deems appropriate, Goods or Services similar to those undelivered, and the Successful bidder shall be liable to the Bank for any excess costs for such similar Goods or Services. However, the Successful bidder shall continue performance of the Contract to the extent not terminated.

Exit Option The Bank reserves the right to cancel the contract in the event of happening one or more of the following conditions:  Failure of the successful bidder to accept the contract and furnish the Performance Bank Guarantee equivalent to 10% of the project cost within 30 days from receipt of purchase contract.  Delay in delivery beyond the specified period.  Delay in completing implementation/customization and acceptance tests/ checks beyond the specified periods;  Serious discrepancy in functionality to be provided or the performance levels which have an impact on the functioning of the solution  In addition to the cancellation of contract, Bank reserves the right to appropriate the damages through encashment of Bid Security /Performance Guarantee given by the Bidder  Bank will pay invoices within forty five (45) days from the date of receipt of physical invoice by the Bank, except for those portions of any invoice that the Bank disputes in good faith and in writing. Invoices shall be raised post milestone sign off for services billing. No penalty /Interest will be paid for the delayed payment. Limitation of liability Vendor’s aggregate liability for actual direct damages shall be limited to a maximum of the Contract Value, provided that this limit shall not apply to following: i. The infringement indemnity; or ii. Bodily injury (including death) and damage to real property and tangible personal property caused by Vendor’s negligence. iii. For the purposes of this Section, “Contract Value” at any given point in time, means the aggregate value of purchase orders placed by Bank on the Vendor under this project. 22

Information System Service and Support 



The Bidder is obliged to provide for application maintenance and support services, as per the terms of this contract, during the period of ATS. The ATS period may be renewed on mutually agreeable terms for further period/s after completion of contracted support period. In case the Bank wishes not to renew the maintenance contract, after the term of this Agreement, the Bank has the right to maintain the System through its own employees or through any entity other than the Bidder for providing the said maintenance services.

Customization Process a. The Successful bidder shall ensure that the software supplied meets all the functional requirements as given in the RFP. The successful bidders shall submit individual time frames, within overall time frame stipulated as per this RFP, required to change / modify / customize each part of the functional requirements which needs such change / modification /customization. b. Any customization done by the Successful bidder to provide the functionality already available in the functional requirements of the RFP shall be at no extra cost to the Bank, whatsoever. c. In case of any additional functionality/new functionality in the software is requested by the Bank subsequent to award of contract, which are not part of the functional requirements as given in the Contract document, the Bank shall place such a request in writing giving the required details. The selected successful bidder shall submit his commercial terms and shall carry out the desired change on mutually agreed terms. The cost agreed shall be a lump sum amount which shall include all expenses to be incurred for delivering such modifications / changes. d. Any gaps identified during product demonstration, functional requirements specifications study, system testing, user acceptance testing, and pilot implementation should be included by the Successful bidder as Implementation efforts. The Bank will not pay the Successful bidder any additional charges for all such customizations. The Successful bidder shall take up all such functionality as required by the Bank on a priority basis. e. The Successful bidder shall provide all tools, testing instruments, drivers, consumables, etc. required to install and customize and test the software free of any fees or charges or any expenses. The Successful bidder shall document and submit to the Bank all the testing activities, procedures and results. The Successful bidder shall provide the Bank weekly progress report on the bugs/problems reported/ points taken up with schedule of date of reporting, date of resolving, and status for all kind of bugs and problems whether reported by branch/ Regional Offices/ Head Office or Successful bidder staff. Force Majeure 

Force Majeure is herein defined as any cause, which is beyond the control of the selected successful bidder or the Bank as the case may be which they could not 23





foresee or with a reasonable amount of diligence could not have foreseen and which substantially affect the performance of the Contract. There shall be no liability or responsibility, on the part of both bank and the Bidder for consequences arising out of interruption of the business due to acts of God, riots, civil commotion, insurrections, wars or any other causes beyond their control or by any strikes or lock outs. Any such interruption due to Force Majeure should be informed by the Bidder to bank in writing within two days of such event.

Arbitration All disputes and differences of any kind whatsoever arising out of or in connection with the purchase order shall be referred to arbitration. The arbitrator may be appointed by both the parties or in case of disagreement each party may appoint an arbitrator and such arbitrators shall appoint an Umpire before entering on the reference. The decision of the Umpire shall be final. Such arbitration shall be governed by the provisions of Indian Arbitration and Conciliation Act 1996. All arbitration proceedings shall be at Mumbai, Maharashtra State, India only. Jurisdiction Notwithstanding anything contained herein above, in case of any dispute, claim and legal action arising out of this RFP, the parties shall be subject to the jurisdiction of courts at Mumbai, Maharashtra State, India only. 3. EVALUATION METHODOLOGY 3.1

Opening of Bids

Opening of Technical Bids The Bank will open the Part I of the bid (Technical bid) in the presence of bidders’ representatives who choose to attend as per schedule given in Activity Schedule of RFP . No separate intimation will be given. In case the bid opening date falls on a holiday, the bids shall be opened at the same time on the next working day. The Bank may, at its discretion, extend this deadline for submission of bids by amending the Bid Documents. Opening of Commercial Bids The Bank will open Part II (Commercial Bid) only for those bidders who have qualified in Technical Bid (Part I).

24

Hardware, OS and Database Requirements 1. 2.

Supply of Hardware, OS and Oracle database are not in scope. The Bidder should provide the minimum Hardware requirement specification for implementing the Integrated Treasury Management System in the RFP. The Bidder should provide the architecture for the proposed solution based on the technical requirements. The bank requires 150 user licenses for the Treasury Management out of which 100 will be concurrent. Bidder’s proposed application has to support Oracle database. Bank will provide Oracle Database license for implementing Integrated Treasury Management System. Based on the requirement given in the RFP, the proposed solution should provide hardware server configurations. Any utility software required should also be mentioned. Present Treasury Application is deployed in Oracle. Bank will re-utilize the database without any additional cost. The existing investment on Oracle licenses will be protected.

3. 4. 5.

6.

During the process of presentation, the bidder is expected to demonstrate or present their solution with the proposed hardware and mention the scalability, availability and support. 3.2

Eligibility Criteria

Sr.No.

Compliance (Yes/ No)

Eligibility Criteria Compliance

Proofs to be enclosed

Common Eligibility Criteria 1. Bidder and all the members of the consortium (if any) must be companies incorporated in India and operating for the past 5 years. 2. The Bidder must be in business of implementation and support of the Integrated Treasury Management application minimum for past 3 years in India. 3. The bidder submitting the offer should have a turnover of minimum Rs. 100 Crore per year for the completed immediate last three Financial Years. 4. The Bidder should have reported net Profit for the completed immediate last three Financial Years. 5. The solution proposed should have been implemented in two banks 25

Relevant Certificates to be provided

Relevant Certificates to be provided

Copies of the immediate last three financial years’ audited balance sheets and P&L should be submitted along with the offer. Copies of immediate last three financial year’s audited balance sheets and P &L should be submitted. Relevant Certificates to be Provided.

6.

7.

8.

9.

with a business mix of minimum Rs. 1 lac crore each, out of which atleast one bank should have business mix of minimum Rs. 3 lac crore. One of the above implementation should be in India. The bidder should have successfully implemented the proposed solution at least in one bank with a business mix of minimum Rs. 1 lac crore on or before 31.03.2014. The proposed solution should have transaction accounting level integration with core banking solution in at least one bank in India. The proposed solution should have been integrated with market risk solution in at least one bank in India. Bidder should have not been black listed at any time by the Central /any of the State Governments/ PSUs in India or abroad, any Financial Institutions in India or abroad. In case, in the past, the name of their Company was black listed by any of the Govt. Authority or PSUs, the name of the company or organization must have been removed from the said list as on date of submission of the RFP, otherwise it will not be considered. An undertaking to this effect must be submitted in their letter head.

Relevant Certificates to be provided

Relevant Certificates to be Provided

Relevant Certificates to be Provided

Self Declaration

3.3 Evaluation Criteria The Bank will evaluate the proposed solution based on the following factors: 1. 2. 3. 4. 5. 6. 7.

Solution Architecture Implementation Methodology Live Solution Demo Number of Resources and Experience in the relevant area. Number of CBS integration. Number of implementations. Migration Approach and methodology 26

8. Training Plan for Various modules 9. Financial Strength. 10. No. of years in the business of Implementation & Support of Integrated Treasury Management System. 11. Customer Feedback. 12. Eligibility Criteria. Technical Bid Evaluation Criteria The proposal submitted by the Bidders shall be evaluated on technical grounds covering various components of the projects as follows: a. Bidder’s financial stability. b. Methodology/Approach proposed for accomplishing the proposed project. c. Professional qualifications and experience of the key staff proposed/ identified for this assignment. d. Activities / tasks, project planning, resource planning, effort estimate etc. Various stages of technical evaluation are presented below: e. f. g. h.

Matching the clear eligibility criteria. Short-listing of the bidders based on the fully matched criteria. Paper evaluation based on response. Arriving at the final score on technical proposal.

At the sole discretion and determination of the Bank, the Bank may add any other relevant criteria for evaluating the proposals received in response to this RFP. 1.

Functional and Technical Requirements

All the requirements are mandatory. Bidder shall indicate in column 4 the availability of each requirement as a standard product (S) or customization (C). The proposed solution offered, however, should have at least 65% of the requirements as a part of the standard product. The remaining shall be customized before Go Live at no extra cost to the Bank. Marks will be awarded as ‘Maximum’ marks that will be allotted to each (S) and 50% of the Maximum Marks will be allotted to each (C). The total marks obtained against the total number of functional specifications will be proportionately modified to a maximum of 60 for the sake of evaluation. 2.

Product Demonstration & Bid Presentation

Eligible Bidders are required to make presentations to supplement their bids and show a detailed product demonstration. The Bank will schedule presentations and the time and location will be communicated to the Bidders. Failure of a Bidder to complete a scheduled presentation to the Bank may result in rejection of the proposal. The same criteria (as Evaluation for functional specifications) will be applied to Product Demonstration also.

27

3.

Past Experience

a) The Bidder should provide details of past experience in implementing Integrated Treasury Management System b) The Bidder’s past experience shall be evaluated and the score obtained by the Bidder shall be considered for evaluation as given in Evaluation Matrix c) The Bidder should provide the details of all the implementations in Banks including details of Scope of Project, Number of Branches with breakup of the role and Proof of Implementation. 4.

Approach and Methodology

a) Reference site visit/ Tele conference: A Committee of people from the Bank would carry out Reference Site Visits and/or Telephonic interviews with the existing customers of the Bidder. The inputs that have been received from the Customer would be considered by the Bank and this might not need any documentary evidence. This rating would be purely on the inputs (like satisfaction of the organization of the product, timeliness of implementation, promptness of support services etc.) provided by the Bidder’s customers and score would be assigned to Bidder as mentioned in Annexure-I, Reference Site Details. The Bank at its discretion may reject the proposal of the Bidder without giving any reasons whatsoever, in case the responses received from the Site Visits are negative. b) Team Strength i.

ii.

Bidder responses to each point under Team Strength in Annexure-K Team Profile, including the team profile provided by the Bidder, would be evaluated. The Bidder should ensure that the people above the role of the Team Lead who are proposed for this project should have worked on projects in Indian Banks earlier.

c) Project Management i. ii.

Bidders are required to respond to each point under Project Management in Annexure-M and each question will be evaluated for suitability of response. The Bidder should provide explanation on the Project Management process that is proposed for the Bank including details of how the same was applied in a similar project.

d) Training The Bidder will be responsible for training the Bank’s employees in the areas of implementation, operations, management, error handling, system administration, etc. with respect to the implementation of Integrated Treasury Management. The core team training will include functional as well as technical training and shall be considered within the scope of the Bidder. The end user training should be also included in the scope. The end user must 28

be trained on all functionalities required for efficient daily operations of the Integrated Treasury Management. i. The quality of the Bidder’s training program shall form an integral part of the final evaluation and selection of the Bidder. The RFP has a sheet in the Training Requirements (Annexure-L) provided separately which the Bidder shall need to complete to allow Bank to evaluate the responses and assign scores against them. ii. The questions pertain to the training techniques, course details provided by the Bidder and the educational qualifications and experience of the trainers. Technical Bid Evaluation Criteria It may be noted that commercial bids will be subjected to following evaluation process: Only those bidders scoring 75% (75 marks out of 100) or above in the technical evaluation will be short-listed for commercial evaluation.

Functional & Technical Evaluation: Evaluation Matrix

Sr.No 1

Criteria Description

Rules of Rewarding Marks

Financial Turnover and Net Profit

Maximum Marks 5

1.1

Turnover for the FY 2013-2014 above Rs. 5 300 Crores. Turnover for the FY The bidder submitting the offer should 2013-2014 above Rs. have a turnover of minimum Rs. 100 Crore 4 200 Crores and upto per year for last three financial years i.e. Rs. 300 Crores 2011-2012, 2012-2013 and 2013- 2014. Turnover for the FY 2013-2014 Rs. 100 3 Crores and upto Rs. 200 Crores

2

Experience

20

References where the proposed solution have been implemented in two banks with a business mix of minimum Rs. 1 lac 2.1 crore each, out of which atleast one bank should have business mix of Rs. 3 lac crore. One of the above implementation should be in India. 2.2 References where the bidder has successfully implemented the proposed

29

More than 3 Banks

5

3 Banks

4

2 Banks

3

3 or more than 3 banks

5

solution (Front Office, Mid Office and Back Office) in atleast one Bank with a business mix of minimum Rs. 1 lac crore on or before 31.03.2014. 2.3 References where the proposed solution has transaction accounting level integration with Core Banking Solution in atleast one Bank in India.

2 Banks 1 Bank 3 or more than 3 banks 2 Banks 1 Bank

2.4 References where the proposed solution 3 or more than 3 should have been integrated with Market banks Risk Solution in atleast one Bank in India. 2 Banks 1 Bank

4 3 5 4 3 5 4 3

3 Functional and Technical Requirements - The marks will be based on the proposed solution meeting the functional and Technical requirements as specified in section 4. Detailed Functional and Technical Requirements. 4 Presentation and evaluation by internal Marks will be assigned committee based on work plan, methodology, solution architecture, team composition, migration, training time duration etc. Total

60

15

100

Minimum Qualifying Score will be 75%. In case there is only one bidder above 75% then the top three bidders having highest score will be considered for further evaluation. 1. The bidder is required to provide documentary evidence for each of the above criteria. 2. Client references would be required on the client’s letter head in case of credentials. Commercial Evaluation Criteria 1. The technically qualified bidder will participate in the Commercial Evaluation process. 2. The Highest Technical bidder shall not automatically qualify for becoming selected bidder and for award of contract by the bank. Commercial Bid Format The bidder has to quote for the fees based on the scope of work outlined in Section “Detail Functional and Technical Requirements”.

30

Commercial Table: Solution Implementation

Serial No

Requirement / Quantity

Basic Price

Taxes, Duties, Levies, Charges

(A)

(B)

Total Cost C=(A+B)

1 Cost of Integrated Treasury Management System including Implementation Cost and post go live support for One year (including migration, customization, Reports, post go live support by 2 L2 engineers for One year ) 2 Cost of onsite support per year for one L1 & one L2 resident engineer at Mumbai after completion of one year from go live. 3 ATS for one year after expiry of warranty period 4 Any other services / Additional tools (Please Specify) Total Estimated Fees for Table

3.4 Other Terms & Conditions  RFP and all supporting documentation should be submitted in English.  Bank reserves the right to accept or reject any or all RFPs without assigning any reason thereof and Bank’s decision in this regard will be treated as final. RFPs may be accepted or rejected in total or any part or items thereof. No contractual obligation whatsoever shall arise from the RFP process.  Any RFP not containing sufficient information, in the view of Bank, to permit a thorough analysis may be rejected.  The Bank shall have the right to reject the RFPs not submitted in the prescribed format or incomplete in any manner.  Bank is not responsible for non-receipt of RFPs within the specified date and time due to any reasons.  The Bank also reserves the right to alter/ modify any/ some/ all of the requirements, as it may deem necessary, and notify the same on its website www.unionbankofindia.co.in on or before the last date for submission of response under this document. The Respondent(s) should be agreeable for the same.  The Respondent who does not meet the evaluation criteria stipulated by the Bank will not be considered for further evaluation. 31













Pre-Bid meeting, if any, will be held to brief the intending Respondent(s) about the requirements of the Bank and to furnish clarifications on any points / queries received from them. No separate communication will be sent for this meeting. Bank reserves the right to verify the validity of RFP information and to reject any RFP where the contents appear to be incorrect, inaccurate or inappropriate at any time during the process of RFP. Respondent accepts/agrees to visit the Bank’s website www.unionbankofindia.co.in for updates in regard to RFP process. No separate communication will be issued to the Respondent(s), except otherwise decided by the Bank. The information provided by the bidders in response to this document will become the property of Bank and will not be returned. Bank reserves the right to amend, rescind or reissue this document and all amendments will be advised to the bidders and such amendments will be binding on them. The bidder has to ensure that the solution proposed should be compatible for migration of the existing KASTLE Package and should also meet the current requirements as mentioned in the scope. The bidder will be asked to explain the solution in detail with a presentation to the Evaluation committee members. The date, time & venue will be intimated to the respondents.

By responding to this document, it is construed that the Respondent has agreed to and fully adhere to all the requirements specified by the Bank. 3.5 General Instructions Nature of Bid a) Bids will be permitted only from a single entity. b) Consortium bidding is not allowed. Source Code a) Bidder has to agree to keep source code of proposed solution with approved / recognized escrow agency under escrow arrangements mutually acceptable to the bank and Bidder for entire project period. Cost of the escrow arrangement to be borne by Bank. Contract will be signed on mutually acceptable terms with bank and escrow agent. b) The application software should mitigate Application Security Risks; at a minimum those discussed in OWASP top 10 (Open Web Application Security Project) c) The Bank has right to Audit the Application / Source Code by suitable Security Auditor. d) The Bidder shall provide complete and legal documentation of all subsystems, licensed operating systems, licensed system software, and licensed utility software and other licensed software. The Bidder shall also provide licensed software for all software products whether developed by it or acquired from others. The Bidder shall also indemnify the Bank against any levies / penalties on account of any default in this regard.

32

e) In case the Bidder is coming with software which is not its proprietary software, then the Bidder must submit evidence in the form of agreement it has entered into with the software vendor which includes support from the software vendor for the proposed software for the full period required by the Bank. f) Escrow arrangement should also include treasury and market risk application software. Information Ownership All information processed, stored, or transmitted by successful Bidder application belongs to the Bank. By having the responsibility to maintain the application, the Bidder does not acquire implicit access rights to the information or rights to redistribute the information. The Bidder understands that civil, criminal, or administrative penalties may apply for failure to protect information appropriately. Any information considered sensitive by the bank must be protected by the successful Bidder from unauthorized disclosure, modification or access. The bank’s decision will be final. Types of sensitive information that will be found on Bank system’s which the Bidder plans to support or have access to include, but are not limited to Information subject to special statutory protection, legal actions, disciplinary actions, complaints, IT security, pending cases, civil and criminal investigations, etc. The successful Bidder shall not publish or disclose in any manner, without the Bank’s prior written consent, the details of any security safeguards designed, developed, or implemented by the Bidder or existing at any of the Bank location. The Bidder will have to develop procedures and implementation plans to ensure that IT resources leaving the control of the assigned user (such as being reassigned, removed for repair, replaced, or upgraded) are cleared of all Bank data and sensitive application software. The Bidder will have to also ensure that all subcontractors who are involved in providing such security safeguards or part of it shall not publish or disclose in any manner, without the Bank’s prior written consent, the details of any security safeguards designed, developed, or implemented by the Bidder or existing at any Bank location. Security Configuration, Monitoring and Audit The baseline security configuration of Operating System, Database, Web server and all other applications to be done by the bidder, according to the industry best practices Compliance with security best practices may be monitored by periodic computer security audits performed by or on behalf of the Bank. The periodicity of these audits will be decided at the discretion of the Bank. Periodicity for Regulatory Audits would be required as per the rules and guidelines laid down by the regulator or as required by the regulator. These audit plan to include, but are not limited to, a review of: access and authorization procedures, physical security controls, input/output controls, DB controls, backup and recovery procedures, network security controls and program change controls. To the extent that the Bank deems it necessary to carry out a program of inspection and audit to safeguard against threats and hazards to the confidentiality, integrity, and availability of data, the Bidder shall afford the Bank’s representatives access to the Bidder’s 33

facilities, installations, technical resources, operations, documentation, records, databases and personnel. The Bidder must provide the Bank access to various monitoring and performance measurement systems (both manual and automated). The Bank has the right to get the monitoring and performance measurement systems (both manual and automated) audited without prior approval / notice to the Bidder.

Performance Bank Guarantee Within the period prescribed under Annexure-O from date of receipt of notification of contract award, the Bidder shall furnish to the bank, the Performance Bank Guarantee for an amount of 10% of the contract value which would be valid for one year after the successful completion of warranty period. 1. The proceeds of the performance security shall be payable to the Bank as compensation for any loss resulting from the Bidder’s failure to complete its obligations under the Contract. 2. The Performance Security shall be denominated in Indian Rupees and shall be by way of Bank Guarantee issued by a Scheduled / Nationalized bank in India (other than Union Bank of India), acceptable to the bank in the Format. 3. The performance security will be discharged by the Bank and returned to the Bidder after 30 days following the date of completion of the Bidder’s performance obligations under the contract. 4. In the event of any contract amendment, the Bidder shall, within 30 days after receipt of such amendment, furnish the amendment to the performance security, rendering the same valid for the duration of the contract as amended. Project plan and Project Schedule a. The successful bidder has to submit a detailed plan for migration, customization, integration, UAT, and implementation of the project which should include the full scope of the project as mentioned above. On acceptance of such plan by the Bank, the bidder is required to carry out the implementation including supply, installation, migration, integration, customization, testing, parallel run, training etc. of the solution. b. Bidder has to adhere to the following project schedule and Milestone. Activities 1. SRS 2. Installation, integration and Customization 3. User Acceptance Test, Migration and Parallel Run 4. Training and Full Project implementation Total

34

Duration 1 month 6 months 3 months 2 months 12 months

c. Bidder should coordinate with the hardware vendor / Bank for installation of proposed solution and other necessary software. d. Bidder should complete the requirement study and submit detailed system requirement specification document within 1 month of placing of the order Bidder should provide customized solution for User Acceptance Test (UAT) and complete the UAT suggestions and observations as per milestone mentioned in Point b (Project plan and Project Schedule). After successful UAT, migration and parallel run the system shall be moved to live. Training should be completed within the project schedule. However keeping the overall time schedule unchanged, flexibility with regard to time duration is permitted within the above activities. 4. DETAILED FUNCTIONAL AND TECHNICAL REQUIREMENTS All the requirements are mandatory. Bidder shall indicate in column 4 the availability of each requirement as a standard product (S) or customization (C). The customization should be completed before the completion of pilot run at no extra cost to the Bank. Marks will be awarded as ‘Maximum Marks’ for ‘Standard Product Feature’ and 50% of the Maximum Marks’ will be awarded for Customization 4.1

General Requirements

Sr. No.

Business Process

1 General Points 1.1 Multi-currency system: The system should have the ability to process, track and account for the necessary range of traded and non-traded currencies which includes INR, ACU, AED, AUD, CAD, CHF, EUR, GBP, JPY, HKD, SEK, SGD, USD, DKK, NOK, SAR, MYR, etc. The system should also be able to process, track and account for other currencies as and when they get added. It should be able to process transactions pertaining to any two of the above currencies in any order for e.g. USD/JPY & JPY/USD 1.2 Reference Data: The system should be able to capture and utilize static data associated with counter parties & their ratings, scrip, products, accounts etc. 1.3 Multiple levels: The system should be able to provide full support for multiple organizational levels and relationships. The hierarchies supported by the system should include branches, subsidiaries, and agents and within each hierarchy the system should also support 35

Max Marks 16 2

2

2

S/C

Comments

1.4

1.5

1.6

2 2.1

multiple access levels for different dealers, back office, mid office, other departments and different levels of management. System should support 24/7 trading and multi-EOD, Continuous processing, “Follow the sun” closings. It should be Global Deployment across different Entities, Time Zones, Financial Products and Roles. Continuous work of Front-Office and Processing independent from official P&L closing. System should have multiple folders within same category of investment, for e.g. within the AFS portfolio it should have the capability of opening separate folders depending upon the dealers & again within the same dealer folder, the system should be capable of entering multiple products like G-Sec, Corporate Bonds, equity, etc. This logic is only an e.g., the logic of which should be extendable through multiple folder system across hierarchy & treasury products. Schemes & Products: The proposed solution should support setting up of different schemes and products within the same scheme, having functional features including but not limited to the following: a. Forex Products: Spot, FX Swap, Forward, NDF, Split Value, Par Forward, Funding Swap, Vanilla and exotic options, Currency Futures b. Derivative Products: Swaps Options Macroeconomic derivatives : Mainly inflation bonds, swaps and option c. Money Market Products d. Bond Market Products e. Capital Market Products f. Hybrid Products g. Commodities (including Gold, Silver loans & gold / silver import on consignment basis etc.) h. Credit: CDS, credit options, baskets etc., CDOs CLN EDIT CHECK The system should be able to reject entries that cause edit errors.

2.2 The system should have the ability to over-ride edited errors 3 DATE PROCESSING 3.1 Day Count basis: The system should be able to handle all types of day count basis including 30/360, Actual/360, Actual/365, Actual/Actual, Actual/365 36

4

2

4

4 2 2 20 2

(Fixed).

3.2 Business Day Convention: The system should be able to support International Swaps and Derivatives Association (ISDA)-defined business day conventions such as following FBD, MFBD, PBD and MPBD for Derivatives. 3.3 Holiday Calendars 3.3.1 The system should allow calendar schedules to be set by users and through manual updates. 3.3.2 The system should allow holiday tables for entities, countries and interest rate benchmarks 3.3.3 The system should allow users to input calendar schedules at least 10 years forward. 3.3.4 The system should be able to edit and over ride global calendar and holiday tables. 3.3.5 The system should be able to move value dates based on holidays declared at the last moment. 3.3.6 The system should have the flexibility to define settlement instructions based on emergency holidays from next day. 3.3.7 The system should be able to model cash flows and interest accruals based on holiday calendar and standard day roll conventions for all treasury products 3.3.8 The system should have the flexibility of entry / modifications / amendments / cancellations / authorizations at any user defined levels. Such parameters changes should be defined by the system administrator, only. 4 USER INTERFACE 4.1 The system should be able to provide a consistent and user friendly Graphical User interface, short-cuts, smart tags and other productivity features 4.2 System should generate standard user definable error messages based on pre-defined parameters 4.3 The system should be able to provide online and offline context sensitive help 5 CURRENCY TRANSLATION 5.1 The system should be able to convert between currencies without manually converting to the home currency as an interim step in the process 5.2 The system should be able to define home currency and wash currency 6 PRODUCT SET-UP 6.1 The system should allow for the creation of products 37

2

16 2 2 2 2 2 2

2

2

6 2

2 2 4 2

2 4 2

and sub products 6.2 The system should allow for creation of product codes 7 PRODUCT STRUCTURING – FUND BASED PRODUCTS 7.1 Set-up of transaction types and associated codes which will be allowed 7.2 Set-up of processing rules for each transaction type like accounting for Accrued Interest, type of transactions allowed. 7.3 Band set-up (minimum and maximum days) on terms and conditions within which the user must operate 7.4 Rules for workflow 7.5 Rules for accounting based on transaction type 8 TRANSACTION TAGGING and REPORTING: 8.1 All transactions should be tagged by product and transaction codes 8.2 Reporting should be facilitated on transactions on products on the minimum parameters like Products, Transactions and Status in the workflow process. 9 PROFITABILITY REPORTING 9.1 The system should allow for profitability reporting by product as specified in respective chapters

2 10 2

9.2 Products should support multi-currency features proposed in the GL 9.3 All incomes & expenses should by default be system calculated, and the system should not complete the transaction unless any modifications to the default values are duly authorized.

2

10 BOOKS OF ACCOUNTS 10.1 The system should have the ability to maintain separate books of accounts 10.2 The system should have the ability to define any currency as the base currency and prepare books of accounts in the base currency as well 10.3 The system should have the ability to maintain books of accounts in both home currency and foreign currency 11 ACCOUNTING STANDARD 11.1 The system should support AS-11 accounting standards for Forex transactions and should be capable of migrating to IFRS as defined by RBI or other future requirements 11.2 The system should be parametric for enabling AS-11 accounting standard at individual product level.

6 2

11.3 It should be possible to use either FEDAI Rate or Market Rate for AS-11 enabled transactions 38

2

2 2 2 4 2 2

6 2

2

2

2

18 4

2 2

11.4 The system should be parametric for enabling IAS39 accounting standard for Hedge accounting

2

11.5 The system should support weighted average method of accounting policy. Multiple records of the same security in T. Bills / G-Sec & other SLR & Non-SLR securities shall be grouped together for the purpose of calculating holding cost 11.6 Repo accounting as per RBI guidelines 11.7 Provision for “fair value accounting” 12 CLEARING AGENCY 12.1 The system should support settlement of Interbank Forex deals through CCIL

4

12.2 The system should support settlement of Interbank Forex deals through CLS

2

13 Reporting Platform [Domestic Treasury] 13.1 The system should be able to settle corporate bond deals through NSCCL/ICCL/MCX SXCCL

14 2

13.2 The system should be able to report corporate bond deals to FIMMDA / NSE / BSE platforms

2

13.3 The system should be able to report CD / CP deals to FIMMDA / NSE / BSE platforms (proposed)

2

13.4 The system should be able to report corporate bond repo deals to FIMMDA / NSE / BSE platforms (proposed) 13.5 Rupee Derivatives reporting on CCIL 13.6 CROMS and NDS-OMS should be available. 13.7 OTC transactions through CCIL as per the new directives of CCIL / RBI 14. Reporting platform for overseas branches should be as per the local regulations of respective country. 15 ACCESSIBILITY, AVAILABILITY & TOOLS 15.1.1 The system should allow for transaction entry, viewing of positions and MIS reports 15.1.2 Ability to process and report on data in an online, real time mode 15.2 Maintenance of trade history 15.2.1 Ability to maintain online history of trade information for all trades 15.2.2 All trades migrated from legacy systems to the new one should also be maintained 15.3 Multi-entity processing 15.3.1 The system should be able to handle multiple entities that Includes global, domestic, international branches, subsidiaries etc.

2

39

2 2 4 2

2 2 2 10 90 2 2 4 2 2 10 4

15.3.2 The system should be able to create physical segregation of data by entities 15.3.3 The system should be able to consolidate data on the basis of Entity reports and combination of one or more entities. 15.4 Interfacing and deal processing Interfacing with information feeds: The system should be able to interface with other solutions for receiving inputs and sending outputs, automatically without any manual intervention, depending on case to case, such as automated information pricing feeds including, but not limited to: 15.4.1 Cogencis / Reuters Rates & Deal Pickup & Bloomberg for Forex & Govt. Securities 15.4.2 CCIL's FX-Clear, FX-Swap, FX-ALL, Citi-Fx, Barx, Autobahn, JP Morgan, IBS & D2, 360T, ICAPEBS,RMDS, RTNS, RTFX, & any other 15.4.3 SWIFT 15.4.4 NG-RTGS / NEFT 15.4.5 NDS-OM 15.4.6 CCIL- CBLO 15.4.7 STP Gateway (Equity Trades) 15.4.8 NDS Call 15.4.9 Kuber for Auction & Open Market Operation (OMO) 15.4.10 CCIL Croms 15.4.11 Market Risk management (SAS) system. 15.4.12 AMFI for Mutual Funds 15.4.13 BSE/NSE Bhav/Bilav files for price upload 15.4.14 FIMMDA for valuation (as per the latest guidelines sector wise) 15.4.15 NSE / MCX / BSE Futures trading & risk management platform separately for Proprietary and Client RETAD for Merchant Transactions for Export, Import, Inward remittances, EEFC, PCFC,FDBD transactions and MF contracts from Branches 15.4.16 Any other exchange platform 15.4.17 The system should support Seamless transfer of data from Front Office to Back Office 15.4.18 Seamless Integration with Core Banking Solution (Finacle) for accounting both way transactions to support merchant client business. The entries at treasury should be automatically posted once completed in CBS Finacle. 15.4.19 Settlement messages should be encrypted before interface with other networks

40

2 4

42

2 2

2 2 2 2 2 2 2 2 2 2 2 2 2

2 2 6

2

15.5 SWIFT as an interface with the Integrated Treasury Management System Should support the following :

14

15.5.1 The system should have complete interface with SWIFT for sending payment instructions, receiving confirmation so as to avoid risks of manual errors & omissions 15.5.2 System should automatically generate SWIFT confirmation slips & confirmation letter. System should also be able to handle automatically MODIFICATION / AMENDEMENT / CANCELLATION of SWIFT messages 15.5.3 System should support of inward SWIFT confirmation messages for forex, money market, derivatives deals. 15.5.4 It should facilitate Message traffic flow with financial information both inward as well as outward 15.5.5 Automatic Reconciliation/matching of MT300, MT 320, MT 640, MT 650, MT600, MT940/MT950 etc.

4

15.6 The system should be able to facilitate straight through processing by automatically forwarding transactions through the transaction chain from front office to middle and back office and to CBS and vice versa. 15.6.1 All internal processes from initiation through execution, confirmation, settlement and final document preparation should be streamlined 15.6.2 The system should be able to generate accounting entries directly for the settled deals 15.6.3 The system should be able to facilitate straight through processing of SWIFT messages and generate accounting entries 15.7 View from the system 15.7.1 The system should allow for viewing of all data from the system which includes: Trade details, Static data (masters), Mark to market values, Accounting Entries etc. 15.7.2 Current market information - Currency Rates 15.7.3 Historical market information - Currency Rates 15.7.4 Audit trails (Fx, MM, System, Derivative etc.) 16 NOSTRO RECONCILIATION: The system should be able to reconcile treasury transactions with electronically / manual uploaded/swift uploading / manually entered received bank statements on a daily basis. Currency wise/ age wise / Branch wise outstanding entries. Reversal of Reconciliation. 17 INTEGRATION

6

41

2

2 2 4

2

2 2

10 4

2 2 2 6

8

17.1 Integration with other systems should be facilitated by the following modes: 17.2 Batch processing for accounting. 17.3 Online processing for capturing currency rates and trades from Reuter's Dealing 3000. 18 Market Data 18.1 System should support real time market data feed from feed providers (Reuters, Bloomberg, Cogencis), any other provider. 18.2 System should support sanity checks for market data and failover capabilities 18.3 System should support upload of market data from external sources e.g. Excel files. 18.4 System should support error handling and notifications for market data errors TOTAL Marks 4.2

4 4 10 4

2 2 2 240

Functional Requirements

Sr. No.

Business Process

1 Deal Capture and Execution 1.1 Deals capture facility including amendment and reversal 1.2 Ability to download/upload deal transaction from external files and interface with dealing platforms available to various desks. 1.3 Ability to offer quick entry of trades, capturing customer spreads and back-to-back cover with interbank desks. 1.4 Ability to automate blotter functionality 1.5 Ability to facilitate internal deals and inter-desk 1.6 Pre-deal limit check and limit reservation facility 1.7 Handling of scheduled and unscheduled holidays across different countries, different centres and different product classes 1.8 Ability to amend or cancel a deal (e.g., incomplete deals) at deal verification stage, by authorized personnel along with maintaining of relevant audit trail 1.9 Ability to Support Algorithmic Trading 2 Deal Analysis 2.1 Ability to offer multiple scenarios for analysis across different books 2.2 Calculation of cost of carry and cost to close 42

Max Marks 18 2 2

2

2 2 2 2

2

2 16 2 2

S/C

Comments

2.3 Real time view of economic P&L 2.4 Port-folio level/desk level/ dealer level P&L analytics with drill down functionality 2.5 View volatility for all products containing optionality 2.6 Real time view of PV01 and Greeks 2.7 Ability to access, receive and utilize real time data feeds from all external information sources (e.g. Bloomberg, Reuters, Cogencis etc.) 2.8 Ability to offer online statistics and graphics for all instruments including rates, availability and historical prices and volume 3 Position Management 3.1 Provide real time view of positions by client, client segment, product type, currency and entity. 3.2 Provide real time view of risk positions by product, trader, desk and also consolidated global risk position 3.3 Ability to view positions on an individual book as well as consolidated portfolio basis 3.4 Ability to provide position calculations for a period of one day and other defined periodicities 3.5 Ability to view all positions on a real time basis including P&L, duration and future equivalent on a conversion factor and modified duration basis 3.6 Ability to display and modify the screen set up by individual user to view positions in different perspectives 3.7 Ability to view risk and positions across the portfolio by maturity, product and/or movements in underlying assets 4 Cash Flow and Fund Management 4.1 Ability to setup dynamic cash flow positions and its management 4.2 Ability to provide cash flow projections (i.e. history, current balance and future projection) of Nostro / bank balances on a real-time basis, reflecting recent trades, cancellations, and amendments for products including All Forex/Money Market payments/ receipts Bond coupons and maturities Other instrument coupons and maturities Forward value Bank/Nostro account transfers Ability to display cash flows at any portfolio level 5 Pricing 5.1 Ability to offer global pricing & pricing tool functionality

43

2 2 2 2 2

2

14 2 2 2 2 2

2

2

6 2 4

16 2

5.2 Ability to offer predefined templates to facilitate pricing for primary and secondary traded products 5.3 Ability to provide pricing functions and utilities integrated into the system to calculate instrument prices, Greeks, and position equivalents for reports 5.4 Ability to price options via pricing calculators on individual workstations 5.5 Ability to offer curve-based pricing capabilities 5.6 Ability to offer price and yield simulations functionality 5.7 Ability to value positions through multiple methods: nominal, maturity and market evaluation methods 5.8 Ability to provide different methods of calculation for pricing function 6 Portfolio and Internal Performance Management 6.1 Ability to provide profit and loss computing functionality and drill down functionality over any portfolio by transaction, by currency, for realized/unrealized, using funding cost and allocated cost 6.2 Ability to support mark-to-market/ NPV calculations 6.3 Ability to support accrual calculations 6.4 Ability to enable profit & loss by choice of currency 6.5 Ability to allow configuration of profit and business center hierarchies 7 Ability to configure the following parameters for a portfolio: Currency, Reference currency, Security and user profile, Display layout, Portfolio levels of detail etc.

2 2

2 2 2 2 2 10 2

2 2 2 2 2

8 Derivatives 8.1 Trade capture from NSE/MCX 8.2 Monthly Provision should be calculated and posted and reversed automatically.

50 2 2

8.3 Daily bench mark rate updating. 8.4 Upload of exchange file and MTM process and posting. 8.5 Generation of margin files to be uploaded in exchanges.

2 2

8.6 Generation of M-duration report (Origin) 8.7 Friday MTM calculation. 8.8 Calculation of capital charge.

2 2 2

44

2

8.9 Mail to client on daily basis MTM, Contract Note, Quarterly Statement, Position Statement.

2

8.10 All reports to be generated in all types of reporting format. 8.11 Alerts of reporting of required reports as per the frequency.

2

8.12 8.13 8.14 8.15 8.16

Margin alerts. Counter party limit updating. Collateral limit updating. Deal confirmation. Reporting of MTM to client and branch on different intervals through Emails.

2 2 2 2 2

8.17 Calculation of current exposure, potential future exposure, total exposure, etc all on specified dates and as per maturity bucket. 8.18 Generation of backdated PVO1 report. 8.19 Calculation of VAR (value at risk). 8.20 Updating of compliance officer particulars. 8.21 Real time settlement. 8.22 Calculation of Turnover fees transaction charges for various exchange. 8.23 Calculation of stamp duty of exchange transactions. 8.24 Generation of reports as per filter. 8.25 Exchange turnover contra entries to be posted automatically. 9 MASTER (ONE-TIME) DATA CAPTURE 9.1 Counter parties: The system should be able to capture the following details e.g. Name, Credit Rating, Address & phone no., Status – Active/ Inactive, Limits Settlement instructions for Forex and derivatives transactions, Foreign Currency Bank accounts, PAN, SWIFT Code , RTGS – IFSC, CCIL / CLS Code etc.

2

9.2 Brokers: The system should facilitates capturing the list of notified/ approved brokers and should capture the following details for each broker e.g. Name, Address, Products handled by broker, Limits, Brokerage rate, Settlement instructions, PAN & Service tax no., Telephone number, Fax, e-mail ID, Complete Bank account detail with IFSC code, DP ID, DP Name, Client ID, Client Margin (slab wise & currency wise)

2

45

2

2 2 2 2 2 2 2 2 4 2

10 DEAL CAPTURING 10.1 The system should have the ability to allow capture and display of the following inputs: Trade date, Value date, Time of trade, System generated deal number, Deal originating entity and desk, Dealer, Transaction type, SLR / NON SLR, Face value of security, Traded price & yield, Quantity of securities, Currency, Exchange rate, Reporting value in foreign currency, Reporting value in INR, Interest rate, Interest frequency, Interest type (fixed/ floating) for MM transactions, Floor/ Cap for MM Transactions Tenor, Securities name/ code, Name of counter party, Name of broker, Principal amount, Staggered Redemption on principal amount etc. System should be able to handle cash flows with different interest payment & principal redemptions dates, Interest amount, Total consideration, Mode of delivery, Brokerage amount etc. System should alert dealer where tolerance limits are breached

16 2

10.2 The system should be able to alert the dealer in cases where dealer limits are being exceeded at the time of deal entry 10.3 The system should permit entry of remarks in free text fields 10.4 The system should facilitate the following types of price quotes: Price in decimals (minimum 4 decimal points) Rounding off product wise Yield in decimals (minimum 4 decimal points) Rounding off product wise Date of Issue Type of instrument Security Code Number ISIN Number Rating and rating date Listing Security Face Value Acquisition price Premium (Acquisition price less face value) Discount (Face value less Acquisition price) Residual period Coupon Coupon payment frequency Yield To Maturity, Duration and modified duration

2

46

2 2

Current Yield Interest payment date Broken period interest Credit rating / Rating Migration of the issuers and consequent diminution in the quality of assets “Put” Option Date of exercise Date of notice “Call” Option Date of exercise Date of notice Convertibility Option Date of exercise Date of notice Tax Status Exempt from Income Tax Arranger Guaranteed by Others Capital Adequacy Issuer Group Eligible for Statutory Liquidity Ratio (SLR) Priority Sector – SLR and NONSLR Sub classification of Housing and Agriculture Public Sector Private Sector Trust / Mutual Fund Mode of delivery Physical Dematerialized Others Custodial status Agency (code) Location Trustee, Receipt of Trust deeds and follow-up of same Document (No.) Guarantor Redemption of premium Name Amount guaranteed

47

10.5 The system should be able to restrict the user from inputting past trade dated entries for investments

2

10.6 The system should be able to provide an audit trail for all transactions entered from trade date onwards & for exceptions 10.7 The system should be able to accommodate the entry of forward value date transactions

2

10.8 Deal numbering : The unique trade identification number should be printed in the deal slip along with the other deal details 11 Deal tickets 11.1 Automatic generation, view, print and review of deal tickets

2

2

28 2

11.2 provide unique deal numbers for each deal ticket 11.3 Generate multiple deal tickets for each transaction

2 2

11.4 Print separate deal tickets for internal and external purposes

2

11.5 Ability to route deal flow based on Deal Ids 11.6 The system should preserve historical data of all deals 11.7 Generate a report of all cancelled / modified / deleted deals. 11.8 Provide interface with existing Dealing Systems 11.9 The system should have the facility of on-line reporting of all merchant Forex transactions (position as well as resource related) from the various branches.

2 2 2

11.10 The system should have chatting facility for quoting and confirming special rates with branches.

2

11.11 The system should be set up at the existing „B‟- Cat branches with facility to extend the same to newly designated „B‟ Cat branches at future date.

2

11.12 The dealing system should be capable of seamless integration with Treasury front office & back office systems. 11.13 The system should be able to ensure that the copies deal slips generated are seamlessly sent to Back Office for authorization, Mid Office in respect of limit exceptions and further processing where ever necessary.

2

11.14 The system should be able to isolate certain deals and not send them to the back office based on certain predefined system parameters.

2

48

2 2

2

12 DECISION SUPPORT TOOLS 12.1 The system should be able to automatically calculate YTM for investment deals that are entered for the purpose of pre-deal decision making Calculators: Yield To Maturity/Price, Current Yield, Yield To Call, Yield To Put, Yield To Worst / Best Duration and modified duration Zero Coupon / Stripped G-Sec pricing Floating Rate Bonds,Government Securities INBMK / INCMT / MIBOR / other benchmark linked bonds,Holding Period Returns Cross Currency spot & forward calculation Overnight Indexed Swaps, Interest Rate Swaps Cross Currency Swaps, Currency Options: Black Scholes Model, Garman Kohlhagen Model, Monte Carlo Simulation Model, Binomial Tree Model, Interest Rate Caps / Floors, Black’s model In the above pricing & calculation models, the system should be able to support the following interpolation techniques: Linear, Log linear, Nelson Siegel, NELSON SIEGAL SVENSSON and Cubic Splines 12.2 The system should provide for scenario analysis of the portfolio · Multi-dimension matrices · User-defined and flexible shift on different market data inputs and horizon date · P&L and sensitivities outputs with multiple breakdown should be available 12.3 The system should be able to retrieve stored deals that are in entered state, prior to confirmation

46 2

12.4 The system should be able to display to a dealer the instrument-wise authorized limits

2

12.5 The system should be able to update cash and security positions on a real time basis

2

12.6 The system should be able to facilitate deal simulation before commitment and provide a warning if the deal results in a limit violation 12.7 The system should provide following information : 12.7.1 Position Reports – Deal wise, Currency wise, counterparty wise 12.7.2 Profitability – Dealer wise & consolidated 12.7.3 Fund Flow Statements(next week, next fortnight, from-date – to-date) for : 12.7.3.1 Forex Operation – Merchant funds flow, Interbank Fund Flow

2

49

2

2

18 2 2 6 2

12.7.3.2 Money Market Operation– Repo, Reverse Repo, MSF,Market Repo, CBLO, Call/Notice Money, Term, CDs, Export Refinance (both lending and borrowing for all transactions) 12.7.3.3 Investment Operation – Category wise & consolidated 12.7.4 Identification of the instrument/amount already Hedged 12.7.5 Utilization of Contracts 12.7.6 Holding Rates 12.7.7 System should enable calculation of forward Rate 12.8 The system should be able to pre-empt in case of possible violation of the following limits: 12.8.1 12.8.2 12.8.3 12.8.4 12.8.5 12.9

12.10 12.11

13 13.1

13.2

Counter party limits, AGL/IGL Limits Counter party group credit limits Instrument-wise limits Broker limits Settlement & Clearing Agent Limits The system should be able to analyze the overall portfolio, or any user-defined portfolio by changing selected parameters The system should be able to estimate projected cash flows by currency The System should be capable of real-time portfolio management: · Flexible Risk / position / P&L viewer · Real-time monitoring · What-if analysis and hedging · P&L Variance · Extensive trade querying capability SYSTEM SUPPORT FOR FOREX TRADE : Facility of netting of inter-bank forward deals for any particular date, in order to release counter-party limits (Bilateral netting). All deals done in forex should be captured by Dealer‟s pad, time-wise, currency-wise and dealer-wise.

2

2 2 2 2 2 10 2 2 2 2 2 2

2 2

22 2

2

13.3 Monitoring of tolerance limits while inputting the forex deals by the dealer. The system should alert the dealer in case of exceeding the limit.

2

13.4 Facility of inputting forex deals in 4 categoriesMerchant, Trade, Money Market, FCNR funding, Arbitrage and Funding , Vostro Funding etc. (all these categories can be defined as per user requirement if there is an efficient folder system structure) 13.5 The facility of inter-dealer position transfer 13.6 The facility of inter-bank netting of forward deals

2

50

2 2

13.7 Provision of STP of deals done through Reuters,D2, D3, CCIL., IBS Net, 360T, ICAP-EBS and other inter-net based trading platforms 13.8 Generation of Gap statement (with resources/deployment in the respective bucket of maturity) – AGL & IGL 13.9 Facility of getting funds flow statement for a period with each day shown separately for forex deals, depo deals, merchant purchase and merchant sale deals or any one or combination of these types of deals. 13.10 Facility of inputting inter-bank USD-INR deals as for CCIL settlement or RTGS settlement. CCIL should appear by default in all USD-INR deals. 13.11 Facility of getting a report of net USD purchase or sale under CCIL for each value date.

2

14. Facility of revaluation with the appropriate spot and forward rates, As per FEDAI and user defined inputs, the revaluation should be done as per gaps and individual deals. . It should be product specific (outright / swap / long swap / RBI deals) with flag available. The corresponding entries of profit / loss should be system generated. 14.1 Further, revaluation of all FX positions on basis of FEDAI-published EOM rate. System must be capable of accepting the INR cross forward rates quoted for maturity on EOM pillar dates and bootstrap and correctly evaluate all INR and non-INR FX positions for all maturity dates and interpolation for forwards. The system should support revaluation of all forward positions on Present Value basis as per FEDAI 14.2 The system should be able to accept YTM curve published by FIMMDA without bootstrapping and apply the curve to evaluation of corporate bonds using FIMMDA’s prescribed methodology, taking into account the credit spread structure by rating and by sector. 14.3 System must be capable of valuation of all bond positions on basis of FIMMDA rates & any other agency like CRISIL, etc. or other user defined/published prices and exchange prices for equity. 14.4 Separate GAP /revaluation facility for FCNR-B, Nostro, EEFC/DRFC/DDA related portfolio

10

14.5 Separate GAP /revaluation facility for individual portfolio 15 SYSTEM SUPPORT FOR G-SEC, MONEY MARKET, EQUITIES AND DERIVATIVE TRADES

2

51

2

2

2

2

2

2

2

2

92

15.1 Structuring Tools 15.1.1 System should provide powerful pricing and structuring tool for all asset classes: · Payoffs across asset classes · On the fly structure or predefined structure (within or across asset classes: Straddle, Strangle, Dual Currency Deposit. · 2-way pricing, sales margin and mark-up · Generic solving, Charts and graphs 15.1.2 Web based Calculator to compute MTM of derivative product with the provision to provide access to the customers who are parties to the derivatives transactions. 15.2 Generation of deal slip and confirmation letter, interest rate reset notice, payment / settlement notice, option exercise notice, barrier trigger notice

4 2

15.3 Deal slip should contain information of the underlying Deals 15.4 System should create separate portfolio for AFS, HFT & HTM books, which should give real-time price changes by linking with Reuters/ Bloomberg/FIMMDA any other agency like CRISIL such that individual security/portfolio Mark to Market (MTM) value can be observed at any given time. 15.5 AFS category in equities / bonds should be able to show sector wise distribution of each stock and sector wise exposure, stock wise exposure, Real time MTM and Beta for the sector as well as individual stocks. There should be provision to update P/E ratio for each stock and sector as well to be updated by linking with Reuters/Bloomberg. Provision for manual intervention should be available. 15.6 The portfolio should show details including number of shares / bonds, BV, FV, Holding Rate, market closing rate for each security and portfolio as a whole for securities / bonds. Equity portfolio should show details including BV, FV, percentage exposure, holding rate, market closing rate, day high, day low, year high and year low for each stock and each sector. 15.7 A daily transaction report with filters should be generated by the system showing all purchase and sale details during a particular day. In the case of securities the same should include details like YTM at market and holding rates, running yield etc. The report should be generated after all deals are entered.

2

52

2

2

2

2

2

2

15.8 On a daily basis when all deals are entered for purchase and sale of securities /stocks, the portfolio should automatically get updated with appropriate holding rates in case of purchase / sale and profit figures in case of sale. Facility for short selling also to be provided 15.9 In the case of equities, there should be provision for updating bonus declaration, share split up, dividend declaration, spin offs and mergers, or any other issue or aspect that affects the holding rate of the shares and affects the portfolio value. 15.10 The fully updated portfolio should appear at the day end once all the deal tickets are generated and authorized such that manual intervention is not required (There should be provision of manual intervention if required). 15.11 There should be provision for entering bid submissions for auction in G-Secs and getting allotment details after cut-off declarations. 15.12 Back office should directly get an updated portfolio at the end of each trading day such that no separate manual record has to be generated by the front office. 15.13 On a daily basis, once the total portfolio is authorized and updated, a record of the same should be saved in the system for that particular day which may be used as a historical record for future reference. There should be provision to extract historical records into excel sheets for use by management 15.14 There should be provision to find brokerage details and percentage wise distribution of business to brokers for risk management purpose. 15.15 Profit and Loss Statement should be available for any specified period (daily, weekly, monthly, quarterly or any specified date range) – dealer wise, segment wise & consolidated. 15.16 The system should be capable of doing scenario analysis at different yield levels. 15.17 There should be provision to find net profit from sale of shares. 15.18 The system should support various bucketing conventions including end-of-months bucketing, additionally system should allow various mode of position/risk split across bucket. 15.19 The system must be able to support securities with a different price-yield convention in its final year without needing to create additional duplicate securities. 53

2

2

2

2

2

2

2

2

2 2 2

2

15.20 The system must be able to support cancellation of FX forward contracts, compute the fee chargeable with margin and recover the same in INR. Additionally, the system should allow for the option to recover the fine upfront with or without discounting. 15.21 The system must be able to support the early utilization including calculation of outlay of funds of FX forward contracts by clients and create the swap position automatically for cover by the interbank desk. 15.22 The system should support the conversion of a spot deal to a forward deal.

2

15.23 The system should support the identification of the trading basis of FX forward transactions and block any deals not booked with an assigned basis. Deals booked must impact the relevant allocated limits of the customers. In case of breaching past performance limit, the system should block the deal and in case of reaching 85% of limit, the dealer should be alerted. 15.24 System should support different trading calendars for government and corporate securities.

2

15.25 System should support securities where final capital repayment follows preceding roll convention and interest payments follows following or modified roll convention. 15.26 System should support real-time or on-demand availability of various regulatory reports including FTD, NOOP, Day light, GAP, NDTL, SLR etc. 15.27 System should support securities position bucketing by duration. 15.28 System should support preferred margin pricing and time-to-next-coupon duration for floating securities.

2

15.29 System should support LAF and MSF repo and reverse repo transactions. 15.30 System should support pledging of securities for borrowings under LAF /CBLO and for margin requirements with CCIL/NSCCL/MCX/USE; such pledged position must be removed from the dealer‟s saleable position. 15.31 System must support the linking of security transactions with its hedging transactions (such as futures and IRS) and allow monitoring of the hedge effectiveness and overall risk. The linking should be flexible with deals being easy to add to and remove from the grouping and 15.32 Hedge effectiveness testing of derivatives deals with underlying assets / liabilities.

2

54

2

2

2

2

2 2

2

2

2

15.33 System should specifically tag underlying items with hedging instrument, to make available P/L or accrual comparison of underlying and hedging deals

2

15.34 System must be capable of supporting the switching of reference rate (e.g. from USD LIBOR 3M to USD LIBOR 6M) in loan/deposit via a single action without needing the user to unwind and book a new deal. Such switching should not impact the past and should handle the accruals. It should also support the borrowings on Interest Resetting clause without forcing to close the deal and create a new deal. 15.35 System should support draw-down and partial drawdown on loans or deposits with proper handling of the accruals with Interest Resetting clause.

2

15.36 System should support the conversion of P&L accumulated in non-INR currency to INR and transfer the arising FX position for covering in the interbank market. 15.37 System should support roll-over of positions daily and allows specification of the applicable roll-over rate.

2

15.38 System must be capable of giving the average YTM on assets and liabilities on the banking book. 15.39 System should support FX curve construction using cross-currency basis swaps and must be capable of further separating FX basis risk from pure interest rate risk for risk management. 15.40 System should support booking FX swap against two different counterparts; this is in case of broker deals where different counterparts are assigned on the different legs of the same swap. 15.41 System should support the transfer of FX position to the MM desk for funding.

2

15.42 System must support drill-down of position to deal level. 15.43 System must support easy to use functionality to split cross positions and transfer positions between portfolios. 15.44 System must have real time analytical tool which facilitate the dealer of complex position

2

15.45 System must support pricing structure trade builder TOTAL MARKS

55

2

2

2

2

2

2

2 2 350

4.3

Mid office and Market Risk Management Requirements 4.3.1 Mid Office Requirements:

Sr. No.

Business Process

1 Mid-Office 1.1 Online Real-time monitoring of all types of deals in bank’s trading book 1.2 Yield curve creation and its use in valuations and VaR 1.3 Provision for attaching an yield curve to any product 1.4 Stress testing 1.5 MTM and revaluation: Both FIMMDA and FEDAI valuation should be supported 2 Counter Party Credit Risk 2.1 Real time limits monitoring for Currency, Dealer and Counterparty based on Notional Principal, credit conversion factors 2.2 Offer real time view of counterparty limits based on the current exposure method 2.3 Soft limits, hard limits and threshold limits 2.4 View of trading limits by product type and by trader on real time basis 2.5 Issuer limit, settlement limit, desk and country limits 2.6 Real time alerts and facility to authorize limit violations 2.7 Ability to scan and attach paper based notes during authorizations for future reference during audits and inspections 2.8 Exception management (i.e. monitoring, flagging and reporting)for limit violation 2.9 Rate scan provision 3 FX swap/SPOT & Outright valuation, MTM & realized P&L on a real time basis dealer-wise and consolidated. Breaches should generate trigger mails/sms 4 Operational Risk Capital Computation using The Standardized Approach (TSA) 5 The system should allow for the measurement of the Counterparty credit risks for treasury 5.1 Real time limits monitoring for Currency, Dealer and Counterparty based on Notional Principal, credit conversion factors. 5.2 Facility to authorize limit violations. 5.3 System should generate exception report for limit 56

Max marks 10 2 2 2 2 2

18 2

2 2 2 2 2 2

2 2 2

2 10 2

2 2

S/C

Comments

5.4 5.5 6 6.1

6.2

6.3 6.4

6.5

6.6 6.7 7 7.1

7.2 7.3 8 8.1 8.2 8.3

8.4

violations Facility to download and capture benchmarks rates. Facility to download and capture currency exchange rates. EXCEPTION REPORTING Intra-day exceptions to be monitored on real time basis and on-line breach alerts should be generated at Mid Office with mandatory printing of the exception report with reasons, deal particulars, time etc as & when such breaches occur End of Day Exception report should be generated mandatorily & no user should have the power to skip the same The system should be able to carry out sensitivity analysis. The system should be able to support warning messages and exception reporting for credit exposure limit violations The system should be able to measure various exposure norms, monitor counterparties’ credit exposure against authorized limits. The credit exposure on off-balance sheet items (Derivatives) need to be arrived based on RBI specified Current Exposure method. The system should provide necessary flexibility to adopt to the latest regulatory guidelines in this regard. The system should be able to arrive net credit exposures on products by counterparty The system should support accrual calculations LIMITS TO MARKET OPERATIONS The system should be able to track user-defined trading portfolio wise & dealer wise limits and provide viewing and reporting The system should be able to define and monitor limits at various levels in the hierarchy The system should be able to issue a system notification to dealers that a limit is violated POSITION TRACKING The system should be able to update positions on a real time basis The system should be able to view positions for user defined portfolios The system should be able to maintain real-time exposures – Prudential exposures, Money Market Exposure, Non-SLR Exposures, Equity Exposure, Industry Exposures, Counter party exposures etc. The system should be able to online monitor Trading 57

2 2 14 2

2

2 2

2

2 2 6 2

2 2 25 2 2 2

1

8.5

8.6

8.7

8.8 8.9 8.10 8.11 8.12

8.13 9 9.1

9.2

9.3

10 10.1

10.2 10.3 11

Book limit, PV01 limit, NOOP Limit, Broker-wise Turnover limits, Stop Loss limits both deal wise and on periodic basis. The system should enable tracking Duration, Modified Duration, Convexity, Holding Period, Entry Level Credit Rating Norms, Rating Migration etc. The system should enable tracking Delta, Gamma, Theta, Rho & Phi for currency options & equity linked convertible bonds / warrants / depository receipts The system should be able to generate, view and print positions reports with fair market value provided by information feeds The system should be able to generate, view and print positions reports The system should enable querying of limits at an individual as well as aggregate level The system should be able to produce daily on-line trade Blotter The system should be able to customize blotter views by user The system should be able to identify online breaching of limits on consolidated basis and segment basis and generate exceptional report. Exposure monitoring branch wise RATE SCAN, LIMIT & EXPOSURE MONITORING The system shall allow users to customize triggers, alarms and thresholds (i.e. increase/decrease thresholds). The system shall have an automated monitoring and reporting of breach in exposure norms, limits (daylight / overnight / counterparty / IGL / AGL / presettlement / Settlement / Issuer / Currency / Broker / Gap / Authorization / Stop-Loss Limits etc.), duration, M-Duration, PV01 etc. The breach in exposure norms & limit as referred above must give alert messages (on-screen pop-ups) to back office, front office & mid office, and generate exception report & audit trail on daily basis. Yield Curve : Under Yield Curve provision should be available for selection of FIMMDA/ NSE / CCIL/Outside Agency/Broker Quotes or user defined yield curve for valuation or VaR computation purpose. Facility to accommodate parallel shift/nonparallel shift in yield curve for revaluation Facility to attach yield curve to any product Mid office - Reports 58

2

2

2

2 2 2 2 2

2 10 2

6

2

6 2

2 2 2

11.1 Fx Limit (Overnight) / IGL / AGL portfolio wise: Actual utilization of various limits on a daily basis has to be captured and average utilization report on monthly/quarterly/annual basis with minimum and maximum utilization slabs. 12 Exposure 12.1 Daily Exposure Report for on balance sheet items plus off balance sheet items (computed as per Current Exposure Method) 12.2 Daily country-wise exposure limit (indicating gross, net basis, short term and long term basis) 13 ANALYTICAL TOOLS (BOTH SECURITY AND PORTFOLIO LEVEL) 13.1 Online Real time monitoring of stop loss/trailing stop limits in forex, equities, bonds etc and online monitoring of stop loss/profitability/yield of MMKT swaps with cost of funds and int earnings being put in manually 13.2 Online trading book monitoring/analysis 13.3 Online portfolio analysis – currency pair-wise trading profit and loss. 13.4 Online breaching of exposure on consolidated basis/segment-wise 13.5 Daily Forex gap position and overnight open exchange position 13.6 There should be STP of flow data between proposed Treasury System and Finacle Core Banking, GPC System, SAS Market Risk System, SAS Operational Risk System, Reveleus Credit Risk System. 14 RISK REPORTS 14.1 Daily HFT & AFS valuation 14.2 Category-wise detailed Valuation Report with summary valuation Report 14.3 Report on equity Portfolio Dividend Yield 14.4 Report giving average cost of market borrowing for Treasury and yield on money market lending. 14.5 Report of outstanding money market swaps / profitability / yield taking manually input cost of funds on daily basis. 14.6 Report of cost of carrying money market swaps with options to input cost of funds on daily basis. 14.7 Treasury average cost / yield based net wise and profit analysis in the format provided by the bank. 14.8 Unrealized gains / loss in SLR / Non SLR securities and equities. [This requires computation of MTM of various bonds] 14.9 Defeasance period for HFT & AFS portfolio 59

2

4 2

2 12 2

2 2 2 2 2

29 2 2 2 2 2

2 2 2

2

14.10 Peak & Average values of NOOP, AGL,IGL, PV01 as required per RBS data 14.11 IC6 14.12 NOP-INR: It will contain NOP-INR values as required per RBI guidelines 14.13 Intra-day Liquidity Management: Adequate funds maintenance at RTGS settlement a/c & RBI a/c by the funding desk (by verifying no availment of Intra-day liquidity). The system should have facility to accept feeds from RTGS system & RBI e-Kuber balances on specified time intervals during the day and at the end of day. 14.14 CDS & any other structured product 14.15 Disclosure report quarterly statement containing bucket wise assets & liab. As per RBI guidelines 15 Operational Risk 15.1 Belated receipt of funds/delayed payment of funds and the interest cost or back valuation charges incurred/belated receipt of funds from branches (for loss on cancellation of any contracts etc)/ nonmaintenance of any margin/penalty if any paid to any external parties i.e. CCIL /RBI/ Parties) should be captured in the exception report and “Operational Loss” data report and should be able to report / migrate the data to operational risk management system 15.2 What If Analysis 15.3 Risk Distribution 15.4 The system shall have a means to automatically generate exception reports 15.5 The system shall allow reports and results from the analytical tools to be exported to Excel or to be converted to an image file (i.e. jpeg or gif) 15.6 Intra-day Open position computed dynamically 15.7 Overnight open position to be computed in all currencies and the ability to convert to equivalent wash currency 15.8 The system should be capable of on-line valuation and support different valuation methods 15.9 DGVT 16 Anti-Money Laundering (AML) Source tool for treasury operation TOTAL MARKS

60

1 2 2 2

2 2 18 2

2 2 2 2

2 2

2 2 2 170

4.3.2 Market Risk Requirements: Sr. No.

Business Process

1 Market Risk 1.1 VaR Methodologies: The system should be able to generate VaR and provide risk measurements and analytical tools for different VaR Methodologies, for user defined confidence levels & holding periods 1.2 The system should calculate individual Security wise, Asset Class wise, Portfolio wise VaR (for HFT as well as AFS) i.e. FX (Trading & Banking Book), Equity, MF UNITS, Interest Rate related instruments under normal & stress conditions with an option for scalability in regard to holding period / time horizon / VaR computation methodology under overlapping / non-overlapping basis 1.3 Provision for computing specific VaR & incremental VaR 1.4 Risk Attribution of VaR numbers 1.5 The system shall have the ability to drill down the VaR by various dimensions to cash flow level 1.6 Users should be able to view results of VaR in a graphical form including tail loss 1.7 Distribution of VaR across the following:  Dealer wise VaR  Products wise VaR  Market wise VaR 1.8 Back testing 1.9 Incremental Risk Charge (IRC), and Expected Shortfall 2 Market Risk Limits 2.1 VaR Limit 2.2 Sensitivity limits 2.3 Limits based on Greeks 2.4 Limit exceeded report 3 POSITION TRACKING 3.1 The system should be able to online monitor VaR Issuer-wise limits, on periodic basis. 4 MARKET RISK MANAGEMENT SYSTEM 4.1 VaR Methodologies: The system should be able to generate the following reports and provide risk measurements and analytical tools for different VaR Methodologies, For user defined confidence levels & holding periods. 4.2 Historical Simulation 4.3 Variance-covariance 61

Max marks 18 2

2

2 2 2 2 2

2 2 8 2 2 2 2 1 1 16 2

2 2

S/C

Comments

4.4 Monte Carlo Simulation 4.5 Hull & White Model 4.6. The system should calculate individual Security wise, Asset Class wise, Portfolio VaR (for HFT as well as AFS) i.e. FX (Trading & Banking Book), Equity, Commodities (Gold), MF UNITS, Interest Rate related instruments under normal & stress conditions with an option for scalability in regard to holding period / horizon / VaR computation methodology under overlapping/ nonoverlapping basis 4.7 Distribution of VaR across the following:  Dealer wise VaR  Products wise VaR  Market wise VaR 4.8 Calculation of contribution of every dealer, product and market towards the overall VaR numbers 5 Market Risk - Reports 5.1 Structural Liquidity Report: Based on residual maturity for fixed/ floating instruments and defeasance period wise for HFT portfolio to be generated along with other assets & liabilities components into RBI prescribed 10 buckets with a provision for splitting any bucket 5.2 Interest Rate Sensitive Report: All investment segment wise / asset class wise are to be bucketed as per re-pricing (floating) or due date (fixed) for rate sensitive assets / liabilities and others would be placed under non-sensitive bucket as per extant RBI guidelines. 5.3 Duration Related Measures: Report on bucket wise (as per STL) investments/assets with weighted average Duration/M duration of such securities/assets for each buckets and consolidated portfolio as a whole 6 Capital Computations – Counter party Credit Risk Credit Risk computation on HTM Portfolio – On Balance Sheet items. Credit Risk computation on market related off balance sheet items (FX, derivatives, gold etc.) as per Current Exposure Method as per RBI Guidelines. 6.1 CAPITAL CHARGE for market risk under Basel III 6.2 CAPITAL CHARGE for market risk under IMA 7 ANALYTICAL TOOLS (BOTH SECURITY AND PORTFOLIO LEVEL) 7.1 Duration & PV01 7.2 Convexity

62

2 2 2

2

2 6 2

2

2

4

2 2 26 2 2

7.3 Scenario / Sensitivity Analysis 7.3.1 With correlation shifts 7.3.2 With parallel shift in yield curve, currencies and market prices 7.3.3 With non parallel shift in yield curve, currencies and market prices 7.4 Duration & PV01 7.5 The system shall allow users to print reports and results from analytical tools. 7.6 The system shall provide a means for users to readily view the formula that was followed to arrive at the metrics that are computed and displayed on the reports and analytical tools. 7.7 Facility for a user configurable Dashboard for Risk Manager 7.8 Duration Gap Analysis (during for each asset and liability) 7.9 IRRBB – Duration Gap and EVE Analysis 7.10 Exposure monitoring Bank wise for all oversees Branches 7.11 Exposure monitoring on Country wise for all overseas Branches 8 RISK REPORTS 8.1 Facility to view the simulation numbers generated by system from front end based on Historical Simulation method 8.2 Back Testing using following methods: 8.2.1 Static Method 8.2.1.1 Dynamic with Constant Method 8.2.1.2 Dynamic with Moving Method 8.2.2 Basel, Actual Method 8.2.3 Facility to view exceptions 8.2.4 System should be able to inform the exceptions 8.3 Kupiec Test and identification of zones as per BASEL II /III for Internal Model Hypothetical Testing 8.3.1 Identification of Correction Factor 8.4 Peak & Average values of VaR as required per RBS data 8.5 Merged VaR / Marginal VaR / Stressed VaR for the entire portfolio 8.6 Stress testing results on all asset classes as per latest RBI guidelines 8.7 Interest Rate resilience report (both for domestic & forex portfolio) which includes bucket wise position of assets & liabilities, wtd coupon, wtd m-duration as per RBI guidelines 63

6 2 2 2 2 2 2

2 2 2 2 2 31 2

10 4 2 2 2 2 2 2 2 1 2 2 2

8.8 Potential future exposure (PFE), expected positive exposure (EPE),Maximum peak exposure (MPE),Effective expected positive exposure (EEPE) 8.9 Basel III capital charge as per RBI guidelines for capital charge computation 8.10 CVA / Advanced CVA as per RBI guidelines for capital charge computation 8.11 Incremental Risk charge (IRC) as per RBI guidelines for capital charge computations 8.12 Horizontal & vertical disallowance as per RBI guidelines for capital charge computation of market risk. TOTAL MARKS

4.4

2

2 2 2 2

110

Back- Office Requirements

Sr. No.

Business Process

1 Deal Verification 1.1 Ability to provide configurable deal verification function by status & authority

Max Marks 14 2

1.2 Ability to provide deal verification facility by exception i.e., exception rules should be configurable by Entity, Product, Counterparty, Dealer, Currency, Country, Location, Amount, Exchange Rate, Others etc. 1.3 Configurable Work flow engine to add or reduce multiple verification levels 1.4 Ability to configure transaction data fields that can be amended during deal verification stage

2

1.5 Ability to amend or cancel a deal (e.g., incomplete deals) at deal verification stage, by authorized personnel along with maintaining of relevant audit trail 1.6 Ability to append standard settlement instructions (SSIs) to deals 1.7 Ability to generate Exception Report 2 Deal confirmation 2.1 Ability to generate and manage confirmations, including interfaces, for all products 2.2 Ability to define the format and wordings of confirmation based on the characteristic of the product/ transaction

2

64

2 2

2 2 18 2 2

S/C

Comment s

2.3 Ability to format and maintain different formats for confirmation by: Product/ instrument, payment type, counter party and currency etc. 2.4 Ability to generate automatic confirmation letters for all transactions on contract date and also for NONCCIL trades separately. 2.5 Ability to support automatic (through upload) sending of confirmations through structured messages by electronic media such as SWIFT (Applicable MT series), e-mails and fax 2.6 Ability to auto match confirmations received from counterparties that should be automatically Muploaded through the SWIFT interface 2.7 Ability to generate automatic reminders for confirmations that have not been received in a predefined format and at pre-defined intervals 2.8 Ability to suppress confirmation for deals confirmed but cancelled on the same day 2.9 Ability to suppress confirmations and payments relating to internal deals 3 Settlement 3.1 Ability to allow the user to use default settlement instructions at the time of deal entry 3.2 Ability to allow the user to input different settlement instructions, which should be authorized at an appropriate level 3.3 Ability to handle settlement splitting of one deal across multiple take ups (with or without residual amount), multiple settlement accounts and settlement of any residual amount on maturity date 3.4 Ability to support aggregating multiple deals into one settlement 3.5 Ability to support automatic generation of payment and receivables list for user defined maturities and contract date and for specific counterparties 3.6 Ability to automatically process all the transactions, for which settlement instructions have been defined 3.7 Ability to generate settlement advice for all deals executed 3.8 Ability to generate due date diary for interest & redemption with adequate filters. 3.9 Ability to allow part settlement of interest redemption

65

2

2

2

2

2

2 2 26 2 2

2

2 2

2 2 2 2

3.10 Ability to allow modification of interest receivable amount on due date because many a times there is minor mismatch in actual interest received from issuer due to rounding off. 3.11 Ability to settle the deals after netting the transactions, to arrive at the net position status by counter party, by products and by currency 3.12 Ability to track call/ put options on securities held 3.13 Ability to generate RTGS messages wherever applicable Ability to send amended messages automatically to CCIL /CLS in case of any amendment made to the original deal. 4 Matching and Transaction Reconciliation 4.1 Ability to allow user definition of primary and secondary keys for matching and reconciliation 4.2 Ability to auto reconcile deals with the Nostro statements 4.3 Ability to support for both automatic as well as forcematching for reconciliation 4.4 Ability to support manual reconciliation for unreconciled entries 4.5 Ability to provide for aging of unreconciled deals 5 NOSTRO Management 5.1 Ability to support management of multiple Nostro accounts by currency 5.2 Ability to transfer funds between Nostro accounts automatically by using MT 200 for settlement Settlements-Support for MT 202,210, Local RTGS 5.3 Ability to set alerts by Nostro account to warn when agreed minimum balance is close to breach 5.4 Ability to provide for Nostro balance projections on a real time basis that reflects the recent trades, cancellations and amendments 5.5 Ability to provide predictions of expected movements in Nostro accounts 5.6 Ability to calculate/monitor interest on Nostro accounts as per user defined parameters 5.7 Ability to calculate interest on back valued funds in the Nostro accounts : Nostro / Mirror – Transactionsn, Nostro / Mirror view, Nostro statement entry (Modify / Splitting), Nostro Statement Entry (Manual Input), Nostro Statement clubbing. 6 Transaction Management

66

2

2

2 2

10 2 2 2 2 2 14 2 2

2 2

2 2 2

12

6.1 Ability to monitor and report on a product / transaction throughout its life cycle until maturity / settlement 6.2 Ability to provide an audit trail on the movement for each transaction until it matures / is settled 6.3 Ability to allow user to trace transactions on a post date basis, by but not limited to Product / Instrument, Dealer, Counter party, Customer, Deal Date, Maturity Date, Trade Date/ Value Date, System Reference Number/ amount etc

2

6.4 Ability to generate statement of outstanding transactions (along with contract details) for counterparty on an ad-hoc basis

2

6.5 Ability to compute and automatically process clearing and agency fees for a particular product 6.6 Ability to specifically monitor collateral in case of collateralized security transaction 7 Accounting 7.1 The solution must be IFRS compliant. Thus though the actual accounting entries could be based on IAS, the software should be able to give balance sheet as per IFRS also 7.2 Ability to maintain chart of account to assist in accounting of Treasury transactions 7.3 Ability to provide for maintaining and mapping transaction posting rules by entry, role, product, instrument, category, transaction type, currency etc.

2

7.4 Ability to provide for capture of all financial transactions concurrently for transaction currency and accounting unit currency (local currency) 7.5 Ability to ensure automatic on-line generation of desired GL transaction posting based on defined transaction rules 7.6 Ability to develop a real time interface with other platforms like CBS-Finacle to transfer transaction level data 7.7 Ability to generate accounting entries on trade date and value date/settlement dates for, but not limited to Revaluation of Forex and Valuation of investments. Accruals Provisions Blocked Accounts Suspense Accounts Amortization of premium

67

2 2

2 26 2

2 2

2

2

2

2

7.8 Ability to support concurrent use/application of different accounting practices (e.g. cash vs. accrual, expending vs. deferral, etc) for different nature of transactions to address to: Statutory requirements Internal management accounting policies International Accounting Standards 7.9 Ability to provide portfolio accounting & GL processing / interfacing without affecting operational availability / online access to transactional/ other data 7.10 Ability to conduct end of day or end of month processing without impacting online trading periods / days 7.11 Ability to support ISDA defined business day conventions such as FBD, MFBD, PBD and MPBD for derivatives 7.12 Ability to support AS-11 accounting standards for FOREX transactions and should be capable of migrating to IFRS as defined by RBI 7.13 Ability to maintain FCNR Portfolio as per Bank/RBI guidelines

2

8 Other Processing Requirements 8.1 The proposed solution should have provisions for adequately processing the following subject to market practice and regulatory guidelines. Short sale When issued bonds Corporate actions including bonus, Dividend Splits Consolidation Interest payments Staggered redemptions Final redemptions etc. Valuations Amortizations NPI (Non performing Investments) Calculation of TDS paid and received Calculation of brokerage/CCIL charges 9 The system should facilitate administration, settlement, accounting and revaluation of the following FX Instruments.

2 2

68

2

2

2

2

2

4

9.1

Inter-bank FX a. Cash b. Tom c. Spot d. Forward e. Long Term Forward Above should be for standard currency pairs like U.S. Dollar – Rupee / Euro – U.S. Dollar / Pound – U.S. Dollar / U.S. Dollar – Swiss Franc, etc. and also cross currencies like Euro – Rupee / Pound – Rupee, Euro – JPY etc. The above should cover : Outright Buy, Outright Sell, Buy-Sell swaps, Sell-Buy swaps, Last Day Last Day, Delivery Options 9.2 Merchant FX f. Cash g. Tom h. Spot i. Forward j. Long Term Forward Above should be for standard currency pairs like U.S. Dollar – Rupee / Euro – U.S. Dollar / Pound – U.S. Dollar / U.S. Dollar – Swiss Franc, etc. and also cross currencies like Euro – Rupee / Pound – Rupee, etc. The above should cover : Outright Buy, Outright Sell, Buy-Sell swaps, Sell-Buy swaps 10 OTHER PARAMETERS 10.1 Facility to capture Trades through Cryptic methods

2

2

28 2

10.2 Cryptic Deal Booking and Reversal and should generate correct & complete accounting entries at Treasury & respective B Cat branches 10.3 Facility to put through transactions in Cross Currency deals for any deal type in merchant (FIR/FOR/FBP/Contracts etc.) & interbank 10.4 System should enable to do cross currency deals with any base currency for e.g. a JPY-US$ deal could be booked with JPY as base currency 10.5 The system should be able to generate a unique number for each deal created

2

10.6 The system should be able to generate reports/ display of open Forex Currency wise positions at any point of time 10.7 The system should be able to calculate underlying floating interest amount applicable in case of a floating rate Repo transaction

2

69

2

2

2

2

10.8 System should be able to capture Nostro Funds Transfer 10.9 System should allow users to generate card rates based on user definable margins and market rate 10.10 System should allow users to define and modify card rates multiple times during the day 10.11 System should allow users to save the card rates in a TXT format and share with the branches. This file should be as per our upload format as per CBS system/ other systems. 10.12 The system should automatically generate a Rate Scan Report on the basis of external rate feeds or manual feeds 10.13 The system should be capable of carrying automatic validation of deal rates based on Tolerance Limit.

2

10.14 System should be able to upload FEDAI defined closing Forex rate (Translation Rate) at the end of day into CBS for AS-11 purpose

2

11 CALCULATIONS AND COMPUTATIONS 11.1 The system should be able to calculate MTM across all currencies 11.2 The system should be able to store historical revaluations for each transaction record

16 2

11.3 The system should be able to store historical Forex rates for all currencies 11.4 The system should be able to compute interest and principal repayments for foreign currency loans and support the Interest Reset clause. 11.5 The system should be able to compare foreign currency forecasts from one time to another or to the actual numbers for the same period 11.6 The system should be able to save foreign exchange rates within the system 11.7 Facility to record counterparty confirmation for Interbank and money market deals 11.8 The system should be able to calculate commission on brokers, service tax and tds as per applicable rates. 12 SETTLEMENT AND CONFIRMATION 12.1 Interbank deals should automatically come for settlement on due date 12.2 System should support split settlement of Interbank deals in case of different currency holidays 12.3 The system should have the ability to create a queue for settlement of Interbank deals done through CCIL

2

70

2 2 2

2

2

2

2

2

2 2 2

10 2 2 2

12.4 The system should have the ability to create a queue for settlement of Interbank deals done through CLS 12.5 Mail messaging system for customer should be provided 13 FACILITY FOR MONITORING AND PROVIDING NECESSARY FACILITY TO CAPTURE/ REPORT THE FOLLOWING:

2 2 10

13.1 Due dates for realization 13.2 Compare the actual date of realization with the due date and calculate late/early realization charges/ gains

2 2

13.3 Provision to enter charges – system may deduct the amount and realized amount may be credited to branches. 13.4 Forward contracts due dates/ delivery dates/ pickup prompts register 13.5 Due dates for Crystallization /reversals 14 SYSTEM SHOULD ALLOW USERS TO DEFINE 14.1 Foreign Bills Purchase - Clean Bills Foreign Bills Purchase - Usance Bills Foreign Bills Purchase - Sight Bills Foreign Bills negotiated Foreign Usance Documentary Bills Discounted Merchant Trade Bills : Export/Import Crystallization of Export Bills Deemed Export Bills Export Bill Rediscounted Packing Credit Foreign Currency Loans Any other future requirement similar to the above 14.2 Foreign Inward Remittance Foreign Documentary Bills Under Collection Foreign Clean Bills Under Collection Foreign Usance Bills Under Collection Foreign Outward Remittance Foreign Import Bill under Collection Payment under LC Foreign Telegraphic Transfer Foreign Demand Drafts Foreign Travelers Cheque Any other inward / outward remittance like FCNR, EEFC, RFC 14.3 Merchant forward contract cancellation charges as per the exchange rate given by the dealer must be recovered from/paid to the customer in INR by system generated entries. 14.4 System driven- Early / Late realization charges 14.5 FCNRB - Foreign Currency Non Resident (B) Deposit

2

71

2 2 22 2

2

2

2 2

14.6 14.7 14.8 14.9 14.10 14.11

15 15.1 15.2

15.3

15.4

15.5

15.6

15.7 15.8

15.9

RFC & RFCTD - Resident Foreign Currency Deposit FCL - Foreign Currency Loan FC BORROWINGS FC BONDS EEFC & EEFC TD - Exchange Earners' Foreign Currency Account Scheme In crystallization of Export Bill correct accounting entries to recover/pay the rate difference amount through system should be there. MARK TO MARKET AND REVALUATION: Capability to mark to market all positions and calculate the profit & loss System should support Revaluation of Forward Position at user defined frequency and show accounting entries in simulated environment before generating the accounting entries on user acceptance System should support Revaluation of Nostro Balances at user defined frequency at FEDAI and show accounting entries in simulated environment before generating the accounting entries on user acceptance The system should be able to accommodate parallel shift/ nonparallel shift in spot Fx/forward rates for stress testing System should support AS-11 accounting and should generate the accounting entries as per the bank's policy The system should enable segregation of profitsdealer wise and deal wise :trading, merchant & arbitrage and also to report cost of carrying money market swaps / arbitrage swaps taking user input rate for cost of funds. System should generate MTM advice and send the same directly to Merchant via Email FCNR . Portfolio. [Banks FC assets and liabilities] revaluation as per AS-11. The assets /liabilities pertaining to FCNR to be identified separately from exchange transactions. The system should be able to do Stress test on daily / weekly /monthly /yearly basis for trading book [ including AFS]

16 RECORDS : The system should be able to maintain at least the following records & generate reports accordingly: 16.1 Open positions – Intra-day & overnight 16.2 Currency pair wise Position Book 72

2 2 2 2 2 2

18 2 2

2

2

2

2

2 2

2

36

2 2

16.3 16.4 16.5 16.6 16.7 16.8 16.9 16.10 16.11 16.12 16.13 16.14 16.15 16.16 16.17 16.18

Accounting Entries Funds Flow Gap Statement Nostro Ledger Deal Register Due Date Diary Outstanding Deal Register Deal Cancellation Register Unconfirmed Deal Register Overdue Contract Register Settled Deal Register Maturity Deal Listing Maturity list of Lending and Borrowing Mark to market of net open positions Bills overdue for Delinking Forex Turnover in multiple currencies equivalent to any particular currency.

2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2

17 DEAL CONFIRMATION 17.1 The system should be able to adopt standard confirmation procedures for all products 17.2 The system should provide the flexibility to customize separation between the users of front office and back office 17.3 The system should allow for viewing of queue of transactions pending confirmation 17.4 The system should provide ticker listing of all transactions pending settlement or confirmation 17.5 The system should be able to assign tags (confirmed, verified) for trades based on user access level 17.6 The system should have the ability to generate deal confirmation in a format specific to the type of instrument in hard copy as well as in electronic form 17.7 The confirmations generated from the system should be possible for users to send hard copies to counterparties /brokers / issuers 17.8 System should have the ability to unmark deals marked for settlement through CCIL or CLS for Forex transactions 18 PRINTING 18.1 The system should have the ability to print all transaction deal tickets 18.2 Re-printing of transaction deal tickets 18.3 printing of all MIS reports 19 COUNTER PARTY CONFIRMATIONS

16 2

73

2

2 2 2 2

2

2

6 2 2 2 8

19.1 The system should have the ability to accept confirmations from counterparties in electronic format 19.2 The system should be able to reconcile the electronic confirmations received from counter parties for foreign currency denominated transactions 19.3 The system should provide for recording of confirmations received in physical mode from: 19.3.1 19.3.2 20 20.1 20.2 21 21.1 21.2

22 22.1

22.2

22.3

22.4

23 23.1 23.2 23.3

Counter-parties Custodians UNCONFIRMED DEALS segregate and send back to the dealer a particular deal that has not been confirmed for any reason report deals that are not confirmed AUDIT TRAILS The system should have the ability to record all modifications and deletions at the trade level The system should provide logs for all audit trails to the system administrator in case of Entry/Modification/Deletion, Confirmation & Settlement of Deals, Change of Password, Change of Parameter, Change of User Definition with user details, date & time DEAL SETTLEMENT The system should have the ability to create a queue for a definable series for payment release for Securities Transactions The system should provide for free text fields to enter manual text for communication purposes between front office and back office The system should have the ability to create a table of standing instructions for settlements of foreign currency payments The system should have the ability to allow back office users to update the standing instruction table and have changes reflected in all outstanding transactions or as defined by the Bank PAYMENTS Ability to generate payment information The system should be able to automatically generate payment requests on or before the settlement date The system should record the relevant approvals for payments for completed deals for foreign currency transactions

23.4 The system should have the ability to generate letters to counter parties 74

2

2

4 2 2 4 2 2 4 2 2

8 2

2

2

2

10 2 2 2

2

23.5 The system should have the ability to compute brokerage payable based on the brokerage schedule input in the masters for Forex transactions 24 FOREX BACK OFFICE REPORTS The system should be able to generate at least the following reports: 24.1 R Returns:The consolidated R Return for the Entire Bank is generated by designated branch from CBS system after merging data of all the Forex branches (B Cat), along with treasury branch (A Cat) data which is given manually at present. The R Return for the Treasury branch must be generated and data must be integrated with CBS system for merging of data of all the Forex branches (B Cat), along with treasury branch (A Cat) and generation of consolidated R Returns for the entire Bank at designated centralized CBS Branch. 24.2 IC4, IC5, IC6 24.3 Statement 5 (FCNR Deposits) 24.4 Other Statutory Returns 24.5 Overdraft in Nostro Accounts 24.6 Excess/ overexposure Limit in Nostro Account 24.7 Interbank Gap Analysis 24.8 Due date diary of interbank deals 24.9 Merchant due date diary 24.10 Unconfirmed Interbank Contracts 24.11 Currency wise position statement 24.12 Currency wise outstanding in Investment 24.13 Currency wise outstanding borrowing 24.14 Maturity Profile of Deposits, Investments, Borrowings etc. in respective currencies 24.15 Brokerage reports including the following 24.16 Total trades broker wise (for committed and settled deals) 24.17 Brokerage due/ payment reports 24.18 Turnover status reports 24.19 Positions reports –Deal-wise, Currency-wise, Counterparty wise 24.20 Limits related report 24.21 Separate Fund flow reports for Forex and domestic transactions 24.22 Deal cancellation report 24.23 Deal amendment report 24.24 Breach reports 24.25 Counter party wise analysis reports

75

2

52 2

2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2

24.26 Instrument wise analysis reports 25 DATA STORAGE 25.1 Data should be stored by the system for at least 10 years 25.2 Users should be able to recall data without any coding requirements 26 MARKET DATA ANALYTICS 26.1 The system should allow users manually define yield curves 26.2 The system should be able to model user-defined treasury curves 26.3 The system should be able to provide trend analysis for market prices of securities

2 4 2 2 6 2 2 2

27 COMPUTATIONS AND CALCULATIONS (refer to the calculators section above)

26

27.1 The system should be able to provide bond calculators to support pricing of bonds and other fixed income securities 27.2 The system should be able to track the strike dates in case of products with embedded call/put options 27.3 The system should be able to calculate interest for products sensitive to caps and floors 27.4 The system should be able to calculate interest of Floating Rate Instruments recognizing reset dates/rates 27.5 The system should be capable of processing transactions both cum-interest and ex-interest basis 27.6 The system should be able to compute brokerage by any of the following methods as part of deal entry: 27.6.1 Flat brokerage with slabs linked to notional amount / deal type [ cash, spot, forward ]

2

27.6.2 Percentage rate 27.7 In case of convertible debentures, the system should be able to update the position based on conversion of debentures into equity shares or other instruments

2 2

27.8 In case of FCCBs, ADRs, GDRs and other foreign currency instruments, the system should be able to capture the appropriate foreign exchange rate to reflect the fair value in rupees

2

27.9 The system should be able to perform duration and convexity analysis

2

76

2 2 2

2 4 2

27.10 The system should be able to categorize all securities into 6 categories for regulatory reporting/disclosure viz. Govt. Securities, Other Approved Securities, Shares, Debentures & Bonds, Subsidiaries / Joint ventures & Others 27.11 The system should be able to categorize all securities into AFS, HTM and HFT and allow shifting between Categories through menu based options (not through fictitious sale/purchase) 27.12 System should support valuations as per FIMMDA guidelines/ local regulatory guidelines 28 SCRIP MASTER DATA The system should be able to store following fields for different instruments 28.1 Instrument name, ISIN, Instrument type, Issuer name/ company name, Coupon rate, Issue Date, Maturity date, Interest frequency/ Interest reset date Benchmark for interest reset for FRBs, Interest convention, Shut period (no. of days), Interest Payment Date, Entry load, Exit load, Identification of Tier II bonds Credit rating and agency and date of rating / internal rating, Whether listed / unlisted, Stock exchange listed on, Whether investment is in priority sector or not. In case of mutual funds whether the same is equity oriented / debt oriented Approved Security Status Physical / Demat status Short Sale Indicator Repo forward status Redemption Schedule 29 DEAL CAPTURE 29.1 The system should permit entry of stop loss and take profit limits by deal type / deal size, and also at portfolio level, and also to cap the limits for predefined periods(daily/monthly/quarterly/annually)

2

2

2 2

24 2

29.2 System should be able to record a reverse trade from the take profit or stop loss notification

2

29.3 The system should be able to compute the exact stop loss and take profit based on pre-defined percentages

2

29.4 The system should be able to give notifications in case of breach of stop loss/ take profit limits

2

29.5 The system should be able to compute scrip wise and bucket wise PVBP and monitor PVBP as a result of every deal at scrip level

2

77

29.6 The system should be able to retrieve static data from masters at the time of deal entry

2

29.7 The system should be able to highlight instances of short sale & covered deals 29.8 The system should be able to stop entry of short sale of securities where such functionality is defined by the user

2

29.9 The system should allow for the following different types of deal capture:

2

29.10 Manual deal entry for deals done through brokers and / or wherever, capturing possible, electronically upload the details.

2

29.11 Automatic deal entry for deals done through dealing systems

2

29.12 Facility (option) to put through reverse deals in case of cancellations on the same day

2

30 SHORT SALE 30.1 System should allow the user to enter into short sale positions in specific instrument / security type (flag required at security / instrument master level for short permitted which should be updated from FIMMDA automatically). Short sale position has to be shown separately. It can be recorded as separate portfolio within HFT Facility to record total outstanding of security & users should be able to change the same with date. 30.2 Facility to define liquid securities for short sale & user should be able to change the status of security from liquid to illiquid and vice versa with date.

12 2

30.3 Real time monitoring of regulatory limits & internal limits set by the Bank. Currently regulatory limit is 0.50% and 0.25% of the outstanding stock for liquid and illiquid securities respectively. User should be able to change the percentage as and when changed by RBI / the Bank.

2

30.4 System should give a message /alert at the time of entering / saving the deal.

2

30.5 The system should keep track of the maximum days where the position can be kept open and provide a report for the minimum short position to be covered at any point of time.

2

30.6 Support of FIFO Based / average based profit policyonly for short sales Transactions

2

31 WHEN ISSUED

2

2

12 78

31.1 System should have facility to define When Issued [WI] securities. Separate Tradable position for When Issued has to be maintained.

2

31.2 System should facilitate capturing WI for "New" as well as "Existing" securities.

2

31.3 Real time monitoring of regulatory limits & internal limits set by the Bank. User should be able to change the same whenever required.

2

31.4 When issued deals should be allowed to be booked in a specific book only.

2

31.5 Facility to roll over the “When Issued” positions into regular positions without re-entering the deals.

2

31.6 The system should keep track of the open When Issued position and provide a report for the open when issued positions to be covered at any point of time.

2

32 LIMITS TO MARKET OPERATIONS 32.1 The system should be able to set and monitor limits based on the following parameters:

26 22

32.1.1 32.1.2 32.1.3 32.1.4 32.1.5

Counter party limits Issuer limits Currency limits Dealer limits Broker limits (only empanelled brokers to be permitted)

2 2 2 2 2

32.1.6 32.1.7 32.1.8 32.1.9 32.1.10 32.1.11 32.2

Scrip wise limits Internal limits Rating limits Instrument wise limits Stop loss limits Take profit limits The system should be able to generate alerts in cases where limits are about to be breached based on certain user defined limit amount / trigger amount.

2 2 2 2 2 2 2

32.3 System should give an option to front office users if they would like to continue with the deal or abort it.

2

33 33.1 33.1.1 33.1.2 33.1.3

CORPORATE ACTIONS System should support following corporate actions: Bonus Rights Dividend 79

16 16 2 2 2

33.1.4 33.1.5 33.1.6 33.1.7 33.1.8 34

Splits and consolidation Merger/Demerger Change in Name /address Interest Payment and redemption. Put / call Pop up VALUATION , AMORTIZATION & NPI (Non Performing Investment)

2 2 2 2 2 8

34.1 System should calculate Mark to market valuation of all securities in the HTM, HFT, AFS and the system should have provision for defining the sub portfolio. System should have the provision for any add on Market/Credit Risk Charges for the purpose of Valuation. 34.2 System should calculate amortization of all securities in HTM based on Straight Line Method & Effective Yield Method concurrently with facility to switchover from one method to another and automatically update Book Value when required and pass necessary accounting entries. System should amortize the securities purchased at premium & at discount be amortized even while following weighted average method of accounting as per RBI guidelines issued from time to time.

2

34.3 Automatic identification of NPI based on user defined rules.

2

34.4 Posting of partial repayment received in matured accounts or NPI accounts after due date.

2

35 TAX DEDUCTED AT SOURCE 35.1 System should be able to keep track of TDS certificates received & due to receive

4 2

35.2 System should be able to generate report on total TDS deducted & TDS Certificates due for receipt on monthly, quarterly, Half-Yearly & Yearly basis

2

36 DIVIDEND ON SHARES/MUTUAL FUND 36.1 System should declarations

be

able

EQUITY/PREFERENCE to

8

dividend

2

36.2 The System should be able to keep track of Dividend received & due to receive 36.3 System should be able to generate report on total dividend received & dividend due for receipt on monthly, quarterly, Half-Yearly & Yearly basis

2

80

record

2

2

36.4 System should generate Pop –up message for HFT securities on 80th day (should be user definable based on change in RBI guidelines or internal requirement) from the date of purchase and should repeat on daily basis with report generation 37 Ability to maintain versions of every business objects (trade, payments, counterparties, etc) in the system throughout their entire life-cycle 37.1 Ability to fix original trade number with the version number incremented each time market events are performed 38 Ability to specify how strong or weak the links between various trade components in a structured product made up of more than one trade component. Strong links would imply that any market event on any component would be replicated across all components. Conversely, weak linked components will have market events applied independently across all components 38.1 Ability to support P&L reporting across various entities across different timezones.

2

38.2 Ability to maintain more than one accounting standard for any entity, e.g. Ind AS, GAAP, etc.

4

TOTAL MARKS 4.5

2

2

6

2

530

Products and Instruments Requirement

Sr. No.

Particulars 1 INVESTMENT DOMESTIC-The system should facilitate administration, settlement, accounting and revaluation of the following Domestic Investment Instruments automatically using FIMMDA/CCIL/ NSE/Outside Agency/ Broker QUOTES on daily basis. It has to take into account the staggered payment of the securities,

81

Max marks 2

S/C

Comments

1.1 Government Securities: Central Government (including FRBs /IIBs /STRIPS)& State Government & TB /CMB a. Primary market auctions b. Secondary market operations(buying & Selling) The above through NDS & NDS-OM systems c. Open Market Operations & Buy backs d. Redemption a. On Tap operations f. Central Government Special Securities, Central Govt. Guaranteed Securities, State Govt. Guaranteed Securities(Buying & Selling)

2

2 Security 2.1 Non Government Securities [Non SLR Securities] a. Primary market b. Secondary market operations I. Buying II. Selling c. Redemption (Part & Full) d. Interest payment pop-up, e.Put- Option alert date

22 2

Non convertible Bonds & Debentures a. Secured b. Unsecured c. Rated d. Unrated 2.2 e. Listed f. Unlisted g. Taxable h. Tax Free i. Subordinate Bonds (TIER I, TIER II) 2.3 Certificate of Deposits / Commercial Paper / Security Receipts / Venture Capital 2.4 Mutual Fund investments (Debt/Equity Oriented) a. Subscription b. Redemption

82

2

2 2

2.5 Pass Through Certificates / Securitized Issuances a. Secured b. Unsecured c. Cash Collaterals d. Guarantee e. Listed f. Unlisted g. Guarantee structures The above function again divided into i. Subscription / Application / Allotment ii. Buying iii. Selling

2

2.6 A) Equity shares / Preference Shares / Convertible Bonds / Warrants / Depository Receipts a. Listed b. Unlisted c. Quoted d. Unquoted

2

2.7 The above function again divided into i. Subscription / Application / Allotment ii. Buying iii. Selling iv. Commitment, Drawdown & Payouts for Venture Capital investments

2

2.8 System should be capable of handling various exotic bonds traded in India – perpetual, step-up, callable and/or putt-able, staggered maturity etc. 2.9 System should be capable of blocking bond deals settling within the lock-down period and roll the date to the next valid date. 2.10 System should be capable for preparation of proposals for Primary investment and management of existing investment 2.11 Constituents’ Subsidiary General (CSGL) Account operations Government Securities a. Secondary market operations I. Buying II. Selling b. Redemption

2

3 Foreign Exchange 3.1 Following currencies should be available in the system: AED,AUD,CAD,CHF,EUR,GBP,HKD, INR ,JPY, SEK,SGD, USD, SAR, DKK, NOK and all other legal currencies

6 2

83

2

2

2

required and solution should be able to process transactions pertaining to any two of the above currencies in any order for e.g. USD/JPY & JPY/USD 3.2 Inter-bank FX a. Cash b. Tom c. Spot d. Forward 3.3 Merchant FX a. Cash b. Tom c. Spot d. Forward e. Long Term Forward f. Cancellation and re-booking and roll over g. Capturing of rating of customers as well as PAN Number for forward contract. h. Customer wise limits assigned for booking of forward contracts

2

2

i. Customer Profiling including monitoring of limits (contracted method & past performance method), margin, MTM margin for Forward contracts, monitoring tools for contract cancelled under underlying /others/ past performance with a trigger if breached the user defined limit. Above should be for standard currency pairs like U.S. Dollar – Rupee / Euro – U.S. Dollar / Pound – U.S. Dollar / U.S. Dollar – Swiss Franc, etc. and also cross currencies like Euro – Rupee / Pound – Rupee, etc. The above should cover : Outright Buy, Outright Sell, Buy-Sell swaps, Sell-Buy swaps 4 Commodities 4.1 Module for controlling and accounting of commodities like Gold, Silver etc 5 Other Deposit 5.1 The system should provide facility for disbursement as well as maintain records of repayment along with interest payment details for deposits with RIDF Series, SIDBI, NHB, and Others 5.2 Twin Currency Option 6 Money Market 6.1 Money Market Operation– Repo, Reverse Repo, Market Repo, CBLO, Call/Notice Money, Term, CDs, Export Refinance (both lending and borrowing for all 84

2 2 4 2

2 4 4

transactions) TOTAL MARKS 4.6

40

Derivatives Requirements

Sr. No.

Business Process 1 Exchange Traded Currency futures & options [ including limit, margin maintenance and call facility] 2 Exchange Traded Interest Rate Future 3 Currency Swaps:

Max Marks 2 2 2

Cross Currency Swaps (Fixed & Floating) Coupon Swaps (Fixed & Floating) Principal Swaps (Fixed & Floating) Range Accrual swaps Swaps & Forward Rate Agreement With amortization / accreting schedules Swaps with different tenor benchmark, setting & cash flows Basis Swaps In Advance / In Arrears Constant maturity swap Caps and Floors Other exotic swaps 4 Currency Options: Plain Vanilla. European Style, American Style, Bermudan Style Single Barrier, Double Barrier Knock Out, Knock In Window Barrier Average (Asian) Monthly/ Quarterly strip structures Range Forwards & Ratio Range Forwards (Zero Cost Options) Binary options – One Touch/ No Touch Look Back (Fixed and Floating Rate) Compound Option, Chooser Option Forward start Options, Ratchet/ Cliquet Options, Balloon Options Currency Range Accruals Fader Structures Other Exotic Options

85

2

S/C

Comments

5 Interest Rate Swaps (IRS) Interest rate swaps on different currency curves as defined in the currency master above Indian Interest Rate Swaps OIS (Compounding) INBMK Swaps INCMT Swaps MIFOR Swaps MITOR Swaps MIOIS Swaps 6 Swaptions: Receiver Swaptions Payer Swaptions Forward Start Swaptions

2

7 Interest Rate Options: Caps Floors Collars Knock out Caps Knock Floors

2

8 Ability to combine /link different products into one transaction e.g. Currency swap with embedded currency options

1

8.1 Whenever any deal is booked for any derivative contract (lRS, OlS, OPTION, forward contract), if deal is back to back or cover or hedge it will ask for original deal parameters to calculate hedge position and net MTM 9 RANGE OF DERIVATIVE PRODUCTS/ INSTRUMENT TO BE COVERED

1

9.1 9.1.1 9.1.2 9.1.2.1 9.1.2.2 9.1.3 9.1.4

Currency Options European Options American Options Exchange Futures Currency futures Plain Vanilla Single Barrier (Knock-In / Knock-out) (American / European barrier monitoring)

2

96 18 2 4 2 2 2 2

9.1.5 Double Barrier (Knock-In / Knock-out) (American / European barrier monitoring) 9.1.6 Partial / Window Barrier 9.1.7 Multiple options 9.1.8 Derivative strategies like Ratio Range, Forward Extra, Seagull, Straddle, Butterfly among others

2

9.1.9 Greeks – Plain vanilla

2 86

2 2 2

9.2 9.2.1 9.2.2 9.2.3 9.2.4 9.2.5 9.2.5.1 9.2.5.2 9.2.6 9.2.7 9.2.8 9.2.9 9.2.10 9.2.11 9.2.12 9.2.13 9.3 9.3.1 9.3.2 9.3.3 9.3.4 9.3.5 9.3.6 9.3.6.1 9.3.6.2 9.3.6.3 9.3.6.4 9.3.7 9.3.8 9.3.9 9.3.10 9.3.11 9.3.12 9.3.13 9.3.13.1 9.3.13.2 9.3.13.3 9.4 9.4.1 9.4.2 9.4.3

Interest Rate Swaps Plain Vanilla Basis Swap Overnight Indexed swap Amortizing swap Accretion Swap In Advance / In Arrears Interest Rate Caps / Floors / Collars Roller-Coaster Swaps Range-accrual Swaps Delayed Amortizing Swap Swaps with Moratorium Swaps with Bermuda Swap with Stub: Stub at start Stub at end Cross Currency Swap Plain Vanilla Basis Swap Principal Only Swaps Coupon only Swap Principal + Interest Exchange at Start End Both Intermediary Amortizing swap Accretion Swap Roller-Coaster Swaps Delayed Amortizing Swap Range-accrual Swaps Swaps with Moratorium Swaps with Bermuda Swap with Stub: Stub at start Stub at end Forward Rate Agreements Pay Fixed Pay Floating Settlement at Start & Settlement at End

87

28 2 2 2 2 4 2 2 2 2 2 2 2 2 2 2 36 2 2 2 2 2 8 2 2 2 2 2 2 2 2 2 2 6 2 2 2 6 2 2 2

9.5 Credit Default Swap 9.6 Other Derivative Products allowed by the Regulators from time to time

2 2

10 Front Office activities to be supported 10.1 System should maintain real-time currency position for each dealer. 10.2 System should maintain real-time currency position across dealers. 10.3 Facility to capture derivative deals through user friendly screens. 10.4 Facility to enter Swap deals in cryptic mode for quick capturing 10.5 Standard Settlement Instructions should be automatically defaulted based on deal parameters 10.6 Facility to copy existing deal to generate new deal. 10.7 Facility to mirror existing deal to generate back to back deal. 10.8 System should support generation of deal tickets. 10.9 Facility for stripping of currency options in to multiple options (shortcut feature for deal definition) with change of : 10.9.1 - strike price and 10.9.2 - barrier price and 10.9.3 expiry dates to exact month, quarter, semi-annual and annual 10.9.4 expiry dates to end of month, quarter, semi-annual and annual 10.10 Definition of currency option strategies as templates which can be easily referenced for creation of strategies 10.11 Calculation of Greeks for Currency Options 10.12 System should support pricing of derivative deals at the time of deal entry.

86 2

10.13 System should provide standalone screen for pricing of derivative deals with provision to convert the entered parameters to a deal.

2

10.14 Matching/ Un-matching of back to back Derivative Trades. System should support both full and partial matching of two or more deals.

2

10.15 Facility to Terminate Derivative Deals. System should compute MTM with a facility to change the system computed MTM amount.

2

10.16 Monitoring screen to monitor Barrier Currency Option Deals for Knock-In and Knock-Out events.

2

88

2 2 2 2 2 2 2 8

2 2 2 2 2

2 2

10.17 Currency Option deals eligible for exercise or lapse should appear automatically on the screen along with important deal information.

2

10.18 Facility to create structured product encompassing various Currency Option, Principal Swap, IRS and Forward Rate Agreement deals.

2

10.19 There should be parametric facility for Front Office authorization.

2

10.20 Computation of interest rate risk like PVBP for Swaps and FRA

2

10.21 Computation of Delta, Gamma Theta & Rho for Currency Options

2

10.22 Facility to designate any of the above derivative in to hedge or trading.

2

10.23 Facility for front office user to manually define the underlying. This should be through a field over and above the “Remarks” field.

2

10.24 Generation of deal slip and confirmation letter 10.25 Deal slip should contain information of the underlying asset. 10.26 Facility to support a wide range of forex option payoffs with advance model.

2 2

10.27 Facility to support Indian, Overseas Fx listed option 10.28 Facility to build linear combined structure products with stripping and solver feature.

2 2

10.29 Facility to handle Fx option related market data, especially Fx smile interpolation

2

10.30 Facility to monitor P& L, position, Greeks and other unique 89reeks natively and dynamically

2

10.31 Facility to manage fx option relevant events like exercise and barrier knock for bulk number of options

2

10.32 Facility to manage the special events in Indian forex option market, like bulk modify the expiry/settlement days due to sudden holiday, modify the settlement type at maturity

2

10.33 Facility to handle commodity in native module instead of using other asset class proxies.

2

10.34 Facility to manage product/location/quality/units etc aggregate/convert position accordingly.

different and

2

10.35( a) Facility to manage full set of commodity listed and OTC products.

2

10.35(b) Commodity trading

2 89

2

10.36 Facility to manage embedded IR and FX risks in commodity products in the same manner as IRD and FX desk, therefore a full cross asset solution.

2

10.37 Facility to handle various equity products: listed and unlisted equities, mutual funds (debt/equity/liquid schemes), preference shares, Initial Public Offering (IPO) subscription and allotment, partly and fully paid venture capital funds, capital advancement and convertible debentures. 10.38 Facility to display average holding cost at portfolio or entity level.

2

10.39 Facility to handle corporate actions: cash and shares dividends, split and reverse split, merger, spin off, rights offering.

2

11 MID OFFICE ACTIVITIES TO BE SUPPORTED 11.1 Real time limits monitoring for Currency, Dealer and Counterparty based on Notional Principal.

12 2

11.2 System should generate alert to users on violation of limit.

2

11.3 Facility to authorize limit violations. 11.4 System should generate exception report for limit violations.

2 2

11.5 Facility to download and capture benchmarks rates. 11.6 Facility to download and capture currency exchange rates and yield curves.

2 2

12 BACK OFFICE ACTIVITIES TO BE SUPPORTED 12.1 System should support back office authorization. 12.2 Facility for reset rate entry for Swap and FRA deals on reset date. System should by default display the applicable benchmark rate with provision to change the same before saving the record.

32 2 2

12.3 Facility to change the settlement currency for FRA, Currency Options and Swap deal settlements

2

12.4 Backdated processing including interest accrual and settlement for backdated swaps.

2

12.5 Facility to confirm a deal and print the confirmation letter. Ability to view the existing confirmed deals

2

12.6 Facility to transfer complete deal wise portfolio position from one portfolio to another

2

12.7 Ability to modify swap parameters like reset date, compounding date and coupon date defined as part of deal entry.

2

12.8 Facility to change settlement instructions 12.9 System should support Forward Revaluation

2 2

90

2

12.10 Facility to amortize the MTM in case of termination of deal in “Hedging” portfolio

2

12.11 Facility to view deal wise MTM across products with facility to view selected deals or portfolios 12.12 Facility to view overall MTM across dealers/ selected dealers by super users 12.13 MTM Trend analysis for any product/ deal – intraday as well as across dates

2

12.14 System should have capabilities to calculate the following margins : a. Initial margin b. Extreme loss margin c. Calendar Spread margin d. Marked to market 12.15 System should be able to tally daily margins maintenance form: a. Government securities b. Cash c. Other forms 12.16 System should be able to link to the respective exchange platform systems: MCX –SX, NSE, BSE, USE, Others 13 SWIFT CAPABILITIES 13.1 Generation of SWIFT confirmation messages for derivative deals 13.1.1 MT305 – CO Plan Vanilla Confirmation 13.1.2 MT306 – CO Single Barrier Confirmation 13.1.3 MT340 – FRA Confirmation 13.1.4 MT341 – FRA Settlement Confirmation 13.2 System should support reconciliation of inward SWIFT confirmation messages for Derivative deals.

2

TOTAL MARKS 4.7

2 2

2

2

18 16 4 4 4 4 2 260

Technical Requirements

Sr. No.

Business Process

1 Concurrent Use 1.1 The system should be able to support simultaneous use of the system by multiple users 2 Scalability

91

Max Marks 2 2 2

S/C

Comments

2.1 The proposed solution should be able to increase or decrease processing resources as per business needs, without the necessity of re-writing code, or undertaking other major efforts

2

4 Data Storage and Archiving 4.1 The Proposed Solution should be able to store data for 10 years and during this period, Data recall should not require any additional coding or additional retrieval procedure. The archival and retrieval programs should facilitate easier analysis of old data 4.2 The system should be able to archive transactional database records. Archived data should always be available in the system. The user at all points of time should be able to access and print archived data 4.3 System should support archiving of data that are beyond a specified time horizon. This should be parameterizable 4.4 Export of data to secondary storage device should be supported by the system 5 Documentation 5.1 The system should be able to provide intuitive and current online documentation.

10 4

6 File import and export functionality 6.1 The system should have flat file import/export functionality to export transaction data and static data in the following formats Microsoft Excel Format (.XLS/.XLSX) Microsoft Word Format (.DOC/.DOCX) Comma separated values (.CSV) Text file (.TXT), PDF, XML etc 7 Database Security 7.1 The proposed solution should allow users to be controlled (creation, activation, deactivation, deletion etc.) by a specific administrator 7.2 Addition of features should be allowed only through a properly revised upgrade and data migration method 8 SYSTEM SECURITY & SYSTEM ADMINISTRATION 8.1 The system should enable profiling of users and definition of control levels & passwords 8.2 The system should enable creation of different access groups with different access control. Users may belong to multiple group 8.3 Log on to the system should require users to provide unique user identity and form of personal identification e.g. a password 8.4 Bank’s Password management features like length and pattern, password encryption, expiry, disabling

2 2

92

2

2

2 2 2

4 2

2 28 2 2

2

2

8.5

8.6

8.7 8.8 8.9 8.10 8.11 8.12 8.13 8.14

4.8

after unsuccesfull attempts, time-out, force password change for events etc. System Administration should provide for creation, deletion and modification of users, upgrade users and assigning data access/modification rights of various user groups Access only to designated users, and user set- up should be centrally controlled through a specific administration module. Maker Checker concept for all type of transactions. Generation of detailed audit trails with the following minimum features: List of all users logged on to the system List of attempted unauthorized logins Details of databases accessed and modified by the users. Generation of daily audit trails. Separate audit trail for exceptional transactions. Provide adequate backup and recovery features. Database locking features in the situation that there are multiple accesses and updates on the same record. Total Marks

2

2

2

2 2 2 2 2 2

50

Reports Sr. No.

Business Process

1 Reporting 1.1 System must come pre-packaged with standard reports that can be modified / customised 1.2 System should support on demand and batch reporting 1.3 System should have the framework to generate regulatory reports and support all required data fields 1.4 System must support GUI based business intelligence tool for configuring reports 1.5 System must interface with enterprise reporting solutions/tools Integration 1.6 System must have support for out-of-the-box connectivity to external systems (trading systems, downstream systems, payment gateways etc) Interface workflows should be configurable 1.7 Interface should support various file formats for Import and Export (CSV, XML, FpML, ASCII etc)

93

Max Marks 20 2 2 2 2 2 2

2

S/C

Comments

1.8 Ability to integrate custom connectivity

2

1.9 System should support error handling and notifications for interface and workflow related errors 1.10 System must provide tools for reconciliation of data imported/ exported from external systems including SGL Account holding from E-Kuber 2 Regulatory Reports 2.1 Should include, but not limited to: NOOP : Net outstanding Open Position (including against INR) Intra Day / Day Light limit (including against INR) 2.2 GAP : GPB (Gaps, position and Balance) return

2

2

62 2

2

2.3 FTD: Forex Turnover Data

2

2.4 Counterparty :Exposure Counterparty limit exposure report 2.5 OFCB : Overseas Foreign Currency Borrowing report

2

2.6 ALM : Asset Liability Management

2

2.7 MAP : Maturity And Position

2

2.8 PPB : Past Performance Basis

2

2.9 SIR : Statement regarding Interest Rate Sensitivity

2

2

2.10 IRSM : Interest Rate Sensitivity Monitor return

2

2.11 CRAR : Capital Adequacy Return reports IC-4, IC-5, IC-6 2.12 RBI Daily Position summary NORD: Non Option Derivatives(Monthly/Quarterly)

2

2.13

2 Rupee

SFR II & III : Special Fortnightly Return II & III Section 42, Annex B: Annexure-B of section 42 Banking Regulation Act 1949.

2

2.14 STAT 5 :Inflow – Outflow of FCNR deposits

2

2.15 MM Daily return : MM Daily Return to RBI

2

2.16 Capital Market Committee) 2.17 Short sale report

2

Exposure

(Joint

Parliamentary

2

2.18 DSB Monthly/Quarterly

2

2.19 Risk Weight Asset

2 94

2.20 Statutory Reports 2.21 MTM Credit Exposure Report

2 2

2.22

Various market risk reports Utilization : Utilization of FCNR funds R Returns IBS Report 2.23 Cross Currency report to RBI 2.24 Option weekly report to RBI 2.25 Interest rate swap

2

2.26

2

IRF reports

2.27 IRS client report 2.28 CSGL Report. 2.29 ALCO Report 2.30 Intraday Liquidity statement Fortnightly valuation of SLR securities 2.31 lntraday Liquidity Management Monitoring Tools Return (BLR- 6) (RBl Circular dated November 3, 2014) and any revision by RBI 3 Report customization 3.1 The system should be able to generate reports based on all available data

2 2 2

2 2 2 2 2

12 2

3.2 The system should allow reports to be exported into Microsoft Excel, Word, CSV, PDF, XML, XBRL and text format 3.3 The system should be able to provide context sensitive help to guide users

2

3.4 The system should allow users to present outputs in the form of graphs, charts and other graphic representation 3.5 The system should allow for sorting of data on trader workstation 3.6 The system should have the ability to isolate and report errors and exceptions 4 Report Coverage 4.1 Ability to generate an output of all accounting entries for a user specified period 4.2 Ability to distinguish between realized and unrealized gain/ loss

2

4.3 The system should be able to support interest payments in advance and arrears for Interest Rate Swaps 95

2

2 2 14 2 2 2

4.4 The system should be able to amortize financial instruments based on straight line method and effective Interest rate method for securities under HTM categories

2

4.5 Calculation of amortization on HTM categories at weighted average method or FIFO as per Bank’s policy

2

4.6 The system should have the ability to show changes due to exchange rate movements separate from changes in market value

2

4.7 Frequency of reports can be: Daily, Weekly, Fortnightly, Monthly, Quarterly, Half Yearly, Annual, For any given period 5 Report Formats 5.1 Daily report containing Resources position 5.2 Daily Front Office Transaction Report Dealer-wise, Sanctioning authority wise 5.3 Scheduling of reports 5.3.1 The system should allow for generation of reports on real time basis

2

5.3.2 Pre-defined reports should be generated with a minimum of user interference

2

6 Archiving of reports 6.1 The system should archive historical rates extracted from market information systems and should also allow for archiving of historical reports 7 Integration with Enterprise Reporting Solutions/Tools

2 2

7.1 System must provide tools for reconciliation of data imported/ exported from external systems

2

8 The system should have easy report writing facility (Report Writing Tool/Wizard), in the user defined format for generating MIS statements and other adhoc reports. For Internal adhoc MIS and reporting, Officers in the treasury branch should be trained to generate Simple reports.

8

8.1 Facility to download data from Integrated Treasury Package to Excel Form.

4

8.2 Soft copy of the reports should be generated in .xls/.doc/.pdf / csv formats 9 RBI Returns 9.1 Cash Reserves With RBI 9.2 CRR Maintenance FORM A. 9.3 Fortnightly Average RBI Balance

4

96

8 2 2 4 2

2

40 2 2 2

9.4 Statutory Liquidity Requirement 9.5 Provisional data on maintenance of SLR. While calculating / computing total SLR – every day , system should be able take into consideration all adjustments in the value of securities due to borrowings under LAF/MSF/MARKET REPO/CBLO. Securities placed with CCIL / other exchanges for margin. MTM loss in AFS/HFT as per RBI guidelines. 9.6 R Return 9.7 DSB All Return 9.8 Investments in equity in the capital market by commercial banks 9.9 9.10 9.11 9.12 9.13 9.14 9.15 9.16 9.17 9.18 9.19 9.20 10 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9 10.10 10.11 10.12 10.13 10.14 10.15 10.16

Report on Capital Adequacy Special fortnightly return III Part E Special fortnightly return III _ Part B Special fortnightly return III _ Part F Return BSR V List of Reports in Report X Form – VIII and CA 23 Off-Site Monitoring & Surveillance (OSMOS) SCHEDULE 57 and SCHEDULE 12 Daily Short sale positions Monthly reconciliation of SGL Account balnces retrieved from E-Kuber with our portfolio Annual report of repo transactions for balance sheet purpose with detailed working Ledger Reports Accounts Ledger Security Ledger Subsidiary General Ledger (SGL) Interest Ledger Dividend Ledger TERM MONEY LEDGER Purchase Register SALE REGISTER / Short Sale security wise. FCNR resources register RFCTD Resources register Merchant forward contract register Contract Register Forward suspense register Suspense cancellation register Suspense reversal register Suspense early delivery register 97

2 2

2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 90 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2

10.17 10.18 10.19 10.20 10.21 10.22 10.23

Outstanding suspense register Interbank maturity register Interbank deal register Repo deal register Day Book Transaction Scroll Any other accounting reports based on the Banks requirements.

2 2 2 2 2 2 2

10.24 Performance measurement – Dealer wise 10.25 Product – profitability report including money market swaps 10.26 Date-wise/Instrument-wise Profit During a Period

2 2

10.27 Portfoliowise Performance measurement report at user defined frequency or range of period 10.28 Product specific interest rate forecasting 10.29 Product wise/ Portfolio wise Statistical analysis of past performance (Quarterly/Half yearly/Annual – at least 3 corresponding periods) 10.30 Daily return on Call, Notice, Term money, Repo transactions, CBLO 10.31 Average outstanding and yield security / sector / portfolio wise 10.32 Balance sheet value of all securities based on the following classifications: Held to maturity, Held for trading, Available for sale and any other classification as required by the bank. 10.33 Schedule 12, FBD Balance sheet, Basel Returns 10.34 Position reports – Category wise as on any date, comparison between three given dates

2

10.35 Entity wise (exposure to a company), Scrip-wise, portfolio-wise position as on any date

2

10.36 10.37 10.38 10.39 10.40 10.41 10.42

2 2 2 2 2 2 2

Balance Report for any given day Funds Position As on Weekly statement of Transactions Transaction During a Period Statement of Term Dynamic Liquidity State wise Exposure Report Charges statement

98

2

2 2

2 2 2

2 2

10.43 Exceptions Reports During a Day – Grouped for every function Bucketwise outstanding IB/MF contracts Forex Business Turnover report Report on FCS account Daily DAC Report ( Issued / Responded) POB Outstanding report (Department wise) Counterparty limit exposure for MFC (CM/PP) Profit & Loss account Balance sheet FxJV /JV INR module 11 ONLINE DEALERS PAD 11.1 Online Portfolio 11.2 Deal Note 11.3 Deal Note-Equity 11.4 Deal Notes For a Day 11.5 Deal Tickets 11.6 Deal Ticket – Equity 11.7 Deal Tickets for a date 11.8 Deal Details - Date wise 11.9 Deal Details - Counter Party wise 11.10 Deal Details-Security wise 11.11 Consolidated Deal Details 11.12 Deal Detail Between Two Dates 11.13 Deal Details Value date wise Between Two Dates 11.14 New Consolidated Deal Details 11.15 New Consolidated deal details dealerwise 11.16 DEAL CONFIRMATION - CALL MONEY 11.17 Deal Confirmation - Non SLR 11.18 Deal Confirmation of all deals of a day – Govt. Securities 11.19 Profit Statement-As of Latest Deal 11.20 Category-wise Monthly Profit 11.21 Detail Security Holding 11.22 Branch Wise Holding Summary 11.23 Deal Letter To Branch 11.24 Same Day Same Security Trading 11.25 Domestic Exposure (For Dealing Room) 11.26 Letter To Branch-Equity 11.27 Valuation Sheet-Equity GL Wise 11.28 Miscellaneous Voucher 11.29 Daily SLR 11.30 SLR actually invested 99

6

116 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2

11.31 Summary Transactions Sheet 11.32 Daily statement of transactions (Purchase) in SLR Securities 11.33 Daily statement of transactions (Purchase) in NonSLR Securities 11.34 Daily statement of transactions (Sale) in SLR Securities 11.35 Daily statement of transactions (Sale) in Non- SLR Securities 11.36 Mandate for Sale/Purchase of SLR Securities 11.37 Daily Report on short selling in GOI Securities 11.38 Monthly reporting to RBI on short selling in GOI securities 11.39 11.40 11.41 11.42 11.43 11.44 11.45 11.46 11.47 11.48 11.49 11.50 11.51 11.52 11.53 11.54 11.55 11.56 11.57 11.58 12 12.1

12.2 12.3 12.4 12.5 12.6 12.7

Inter Bank Deal Slip Repo Deal slip Internal Transfer Deal slip Merchant Forward Contract Booking Slip Inter Bank Swap Deal Slip Dealers Pad Currency wise position balances Funds Flow - Currency wise Deal Register Termination Register Settlement Register Portfolio Transfer Register Match Register Event letter MTM Report Outstanding Register Swap Schedule Register Interest Accrual Reset Advice Mark to market Payment Gate wise (FCTM) Advice Summary Account Ledger Interbank maturity register with payment mode (Cash/Settlement (INR)-cross currency) Interbank Maturity Report Overdue Interest – Age wise Overdue Merchant Contract Overdue Export Bills / Due for Delinking Overdue Foreign Currency Loans Profit and Loss statements 100

2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 130 2

2 2 2 2 2 2

12.8 Realized Profit and loss 12.9 Volume and turnover status reports 12.10 Cash flow statements - Daily /Weekly Monthly/Quarterly/ From-date – to date

/

2 2 2

12.11 Broker Exposure Transaction wise 12.12 Brokerage paid during a Period-Broker wise 12.13 Broker-wise reports (stating the % of business done)

2 2 2

12.14 12.15 12.16 12.17 12.18 12.19 12.20 12.21 12.22 12.23

2 2 2 2 2 2 2 2 2 2

12.24 12.25 12.26 12.27 12.28 12.29 12.30 12.31 12.32 12.33 12.34 12.35 12.36 12.37

FEDAI Revaluation (Daily/Monthly/Quarterly) Interbank deal register Repo deal register Repo deals due date diary Unconfirmed forex fwd. Contracts Dealers pad IB Foreign currency contract confirmation R Returns R returns currency wise details Nostro balances Consolidated Nostro Ledger Statement of Matched Entries on particular day Mirror Balance Summary Nostro Balance Summary Reverse Reconciliation O/S Reconciliation entries for One Lac and above as on a particular date Nostro Tracer Letter Reminder letter to the branches for their credit and their debits by default Age wise nostro entries Check list for nostro statements Age wise analysis of un-reconciled entries from Date To Date Reconciliation of o/s nostro entries as on Date Inward Remittances Report Outward Remittances Report FCNR resources register FCL resources register RFCTD Resources register Outstanding FCNR as on a particular date Outstanding RFC-TD as on particular date Outstanding FCL Overdue FCNR EEFC/DRFC/DDA ledger branch/customer/currency wise 101

2 2 2 2 2 2 2 2 2 2 2 2 2 2

12.38 12.39 12.40 12.41 12.42

12.43 12.44 12.45 12.46 12.47 12.48 12.49 12.50 12.51 12.52 12.53 12.54 12.55 12.56 12.57 12.58 12.59 12.60 12.61 12.62 12.63 12.64 12.65 13 13.1 13.2 13.3 13.4 13.5 13.6

RFC ledger branch wise/customer wise/currency wise Provision for interest accrued -FCNR Provision for interest accrued -RFC TD All related reports for FCNR/ RFC deposits controlled under old as well as new accounting system Revaluation of FCNR /RFC should be calculated by the system and entries should also be passed by the system. Department wise sundry as well as POB head to be maintained. Outstanding merchant forward contracts Merchant Forward Contracts utilized between 2 dates Merchant Forward unconfirmed deals -Contract cancellation debit/credit advice and entries of loss / gain there on as per RBI norms. Mer. Cont. early delivery and recovery of swap charges / interest on outlay Contracts due for delivery of documents Merchant forward contracts due within spot date Merchant forward contract register between 2 dates Contracts due for auto - cancellation Merchant forward contract summary Merchant contracts overdue Contracts cancelled Contract Register Transaction log Forward suspense register Suspense cancellation register Suspense reversal register Suspense early delivery register List of transactions maturing between two dates Outstanding suspense register Crystalized bills report Bills to be crystalized Regulatory Reporting Daily RBI/ SBI / any other regulatory balance (Centre wise) Reports on Funds & Treasury Position-maintenance of CRR/SLR Interest on CRR Daily-Fortnight Position Fortnightly call Lending – Annexure-C Call Borrowing Details – Annexure-C 102

2 2 2 2 2

2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 432 2 2 2 2 2 2

13.7 Fortnightly cumulative Call Money Transaction Position 13.8 Institute wise Call Details (Lending) 13.9 Centre wise Call Details (Lending) 13.10 Institute wise Call Details (Borrowing) 13.11 Centre wise Call Details (Borrowing) 13.12 Call Money Transaction (Lending) for a period 13.13 Call Money Transaction (Borrowing) For a period 13.14 Call Lending Average Rate 13.15 Call Borrowing Average Rate 13.16 Call-Per day Lending Average (Banks/Others) 13.17 Call-Per day Borrowing Average (Banks/Others) 13.18 Daily Call Report 13.19 CALL-Daily Interest Banks and Others 13.20 Average Yield/Average Cost in Call Money Market 13.21 Detail Short term Deposit 13.22 Branch wise short term deposit (Outstanding) 13.23 Counter Party-wise Exposure 13.24 Voucher (LAF/REPO)-For a Date 13.25 Summary of LAF/Repo Voucher 13.26 RBI LAF/ Repo During a Period 13.27 Repo Transactions on Monthly/quarterly/half yearly & yearly basis as per RBI requirements 13.28 Deployment of Funds in Debt Oriented Mutual Funds 13.29 Summary of Deployment of Liquid Funds and Report on Investment in Liquid Mutual Fund to Bank’s Net worth 13.30 Security Holding SGL/ Demat / Physical Detailed 13.31 Security Holding HTM/AFS/HFT 13.32 Security Holding Credit Rating wise Summary 13.33 Security Holding Credit Rating wise Detail 13.34 Security Holding Sector/Industry Summary/Detail 13.35 Security Holding SLR/Non SLR/Recap Bonds 13.36 State wise Security Holding Summary 13.37 Branch wise / DP wise Security Holding 13.38 Report on the investment in Central Loans 13.39 Investment in State Development Loans 13.40 Investment in Other Approved Securities 13.41 Investment in Tier-II capital of other Banks 13.42 Report on the investment in Bonds & NonConvertible Debentures 13.43 Report specifying the investments with “Call” or “Put” Option / date wise / notice period wise. 13.44 Report with regard to the exposure in Capital Market 103

2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2

2 2 2 2 2 2 2 2 2 2 2 2 2 2 2

13.45 Report with regard to Investment in Venture Capital Fund / Undrawn balances in these funds 13.46 Static and Dynamic Gap Reports 13.47 Capital Market Exposure Report Net of Exemption 13.48 Maturity Pattern 13.49 Age-wise report in respect of HFT (to check 90 days defeasance period) 13.50 Mark to Market report for the portfolio (Product-wise & Category-wise) 13.51 Rating Migration Report 13.52 Issuer wise Investment Transaction During a Period 13.53 Issuer wise Exposure and Overdue (Category wise) 13.54 Sector-wise Investment Report 13.55 Report on Quoted/Unquoted, Rated/ Unrated, Listed /unlisted, Securities

2

13.56 Report on Non-Performing Investment with provisions. 13.57 Summary of NPI / Written off investments 13.58 Report on average Investment – Scrip-wise, category wise, portfolio-wise

2

13.59 Duration/Modified Duration/Current Yield summary of Portfolio (Online)/ total 13.60 Volume and turnover status reports 13.61 Daily Turnover 13.62 Security Wise Turnover 13.63 Interest Forecast Report 13.64 Cash flow statements Daily/Weekly/Monthly/Quarterly/

2

13.65 13.66 13.67 13.68 13.69 13.70 13.71 13.72 13.73

Investment Interest A/C Collection (Long Book) HTM Sale During a Period with profit / loss Advice Details HFT Revaluation Category wise Yield On Investment Current Yield on Portfolio Report on average Yield, portfolio-wise Report on Equity portfolio Dividend Yield Report on Mutual Fund – Enter Portfolio, Scheme wise Return

2 2 2 2 2 2 2 2 2

13.74 13.75 13.76 13.77 13.78

Dividend Received Long Book Asset Position Tracking Interest Vouchers-For a Date Securities Maturing during a period Redemption Detail during a period

2 2 2 2 2

104

2 2 2 2 2 2 2 2 2 2

2 2

2 2 2 2 2

13.79 13.80 13.81 13.82 13.83 13.84 13.85 13.86 13.87 13.88

Redemption SLR/Non SLR during a period Redemption Overdue Letter to Branch Redemption Overdue Letter to Institution Valuation Detail & Summary (Tax Purpose) Outright Purchase Detail during a Period Subscription during a period Investment Statement Top Sheet Overdue Interest with breakup Risk Weightage Investment /Acc/ Ovd Accrued Interest for all interest bearing securities (Rating wise/Current Yield wise/YTM wise)

2 2 2 2 2 2 2 2 2 2

13.89 Investment Accrued/Amount Central/ State Others as per GL ( date wise category wise/deal) 13.90 Summary of Sale-Purchase Voucher 13.91 Summary of Interest/Redemption Voucher 13.92 Payment Gate wise (FCTM) Advice Summary 13.93 Voucher Money Market 13.94 Position of Overdue Redemption 13.95 Voucher (Sale/Purchase/Redemption) - For a Date

2

13.96 13.97 13.98 13.99 13.100 13.101 13.102 13.103 13.104 13.105 13.106 13.107 13.108 13.109 13.110 13.111 13.112 13.113 13.114 13.115 13.116 13.117 13.118

Interest Letter to Branch Interest Receivable During a Period (Summary) Interest Receivable – Branchwise summary Credit Rating Details Security Holding Summary (Any-prior-dated) Duration/Modified Duration (Any-prior-dated) Money Market Letter Security-Holding (Detail) – Industry wise Issue wise Exposure and Overdue (Any-Prior-Dated) Accrued Interest On the Portfolio Summary Of Accrued Interest On the Portfolio Tax free Security List Branch / DP wise Security Holding (Any-prior-dated) Redemption Receivable During a period Various Investment Account Security Holding Detail (SHARE, MF) Interest Income On Sale/Purchase – Category wise Security Holding (Detail) - Security Name Wise Valuation (Mutual Fund) - Detail/Summary-Category wise Capital Market Exposure Statement Summary Sheet - MM Vouchers NADB Summary (Rated, Quoted, etc.) Status of Overdue Interest of a Past Date 105

2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2

13.119 13.120 13.121 13.122 13.123 13.124 13.125 13.126 13.127 13.128 13.129 13.130 13.131 13.132 13.133 13.134 13.135 13.136 13.137 13.138 13.139 13.140 13.141 13.142

13.143 13.144 13.145

13.146

13.147

Security Wise Transaction for a period (SGL) Accrued Interest on Term Money Deposit Online Valuation of Equity/MF Valuation Detail & Summary (Normal) Interbank Repo During a Period Dividend Summary Detailed Security Holding (Quoted/Not Quoted) Overdue Interest Not Booked As Income No. of months Overdue Interest Booked as Income No. Of Months Average Securities (Monthly) Redemption Detail during a period Category wise Subscription during a Period Category wise Board Note Annexure Category wise Interest From Tax free Bonds Account Ledger (Date wise Breakup) Branch wise Security Holding with BV (Any prior dated) Any other regulatory report Trial Balance Maturity Profile (Call/Put) Interest letter to issuer Investment Interest A/C Collection (portfolio wise) Security List with call/put option Board Note Annexures for Sale/Purchase Report accrual interest posted during day end process at the time of quarterly/Half Yearly/Annual closing Posting of Overdue interest during day end process at the time of quarterly/Half Yearly/Annual closing There should be segregation between overdue investment & NPI investment in relative report In case of PTCs & other similar instruments, the cash flow generation, payment of interest cannot be defined at the time of creation of instrument. Such facilities should be made available While verifying history of any securities such as interest received date wise, redemption received date wise present outstanding is not available in one report. Reports which are required for daily monitoring purpose such as Holding position, Transaction Report category wise, profit position category wise, Trial Balance & other reports.

106

2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2

2 2 2

2

2

13.148 Report on Daily/Weekly/Monthly/Quarterly

Amortization

2

13.149 Mark-to-Market Provisioning requirement of Investment portfolio on Daily /Monthly /Quarterly /Half-yearly/ Annual basis based upon group-wise netting as per RBI guidelines (all are ignoring appreciation) viz. a) Govt. Securities i.e. Central + State b) Other Approved Securities c) Bonds & Debentures i.e. PSU Bonds + Corporate Debentures d) Subsidiaries & Joint Ventures e) Shares i.e. Quoted & unquoted, Preference Shares, Equity based Mutual Funds, Venture Capital (Equity participation) etc. f) Others i.e. CP, CD, Priority Sector Deposits, Security Receipts etc 13.150 System should be capable of forecast MTM value of Investments comprising dated securities (total as well as Scrip/Category/portfolio wise) on deviation of YTM by user defined basis point change from the current level 13.151 For the purpose of Income Tax Act as amended upto date valuation of securities at quarterly intervals taking into account least of book value/market value of each individual security 13.152 Profit and Loss statements 13.153 Realized Profit and loss 13.154 Projected Interest Accrual based on current portfolio 13.155 Report on sale of HTM securities for the user defined period Accrued Interest Report as of any date. The report should provide following information : a) Name of Security b) Rate of Interest c) Last Interest Date d) Frequency of Interest payment e) Day count convention (Actual/Actual, Actual /365,30/360, A/365 (Fixed) etc) f) Daily Accrual g) Cumulative accrual upto date h) Face Value as on date 13.156 Report on sale of HTM securities for the user defined period 13.157 Report on Interest due as on any date (category wise & summary with age wise classification)

10

107

2

2

2 2 2 2

2 2

13.158 Report on overdue redemption on any date (category wise & summary with age wise classification) Statement on Total Interest Income for the Qtr/Half year/ Year– System should generate at quarterly interval a statement with following details a) Interest collected during the quarter/halfyear/year b) Add - Interest earned on Sale of Securities during the quarter/half-year/year c) Less – Interest Paid on Purchase of securities during the quarter/half-year/year d) Add – Interest Accrued on Investment upto the last date of the Quarter/Half-Year/Year e) Less – Interest accrued upto the last date of the previous Quarter/Half-Year/Year

2

13.159 13.160 13.161 13.162

Watch Report (If VaR is increasing over a period) Brokerage Paid During a Period-Broker wise Brokerage Exposure Statement Broker wise VAR For HFT as well as AFS as per IMA approach – Report frequency daily as well as user defined

2 2 2 2

13.163 Risk Weight Assets & Exposures (Domestic) 13.164 Capital Charges as per standardized & IMA Approach – Report frequency daily as well as user defined

2 2

13.165 All the regulatory/internal limits, on solo & gross basis can be fed into the system.

2

13.166 Duration, Modified Duration, Convexity, Current Yield, YTM, VaR etc, can be obtained security-wise, category wise & portfolio wise.

2

13.167 Valuation of securities can be obtained online 13.168 Sensitivity & scenario analysis can be done 13.169 Online dealer-wise position of Held For Trade portfolio with cut-loss limits

2 2 2

13.170 Only empanelled brokers should be marked active. Broker wise turnover (amount and percentage vis-àvis total brokers' turn-over) for the financial year should also be provided online

2

13.171 Position of investment portfolio should be available online clearly specifying exposure limits vis-a-vis actual maintenance

2

108

13.172 List of un-rated and unlisted investments can be obtained

2

13.173 Threshold limits (90% of the maximum limits) should be fixed and made available online

2

13.174 Report should be able to generate Market Risk & Credit Risk charges, Portfolio wise, for the purpose of RAROC.

2

13.175 Counter party exposure 13.176 Foreign. Currency position-currency summary

2 2

13.177 13.178 13.179 13.180 13.181 13.182 13.183 13.184 13.185

wise

and

Sources and uses of foreign. Currency funds Borrowing maturity pattern-Lending-currency wise Borrowing maturity pattern-Borrowing-currency wise Currency wise gap scan Maturity mismatch currency wise and USD equivalent Summary of daily gaps, position and cash balances Daily reporting of forex operation IC-5 - including net open position of foreign Currency Credit risk concentration in derivatives/ forex contracts - Top 10 customers

2 2 2 2 2 2 2 2 2

13.186 Credit risk concentration in derivatives/ forex contracts - Top 10 inter bank

2

13.187 Bucket wise position of Borrowings in Foreign. Currency

2

13.188 13.189 13.190 13.192 13.193 13.194 13.195 13.196 13.197 13.198

2 2 2 2 2 2 2 2 2 2

Capital assessment under Basel – Basel-III Qty/ Monthly Forex Review-Forex Turnover CAM(Capital Adequacy Monitoring Statement) MAP currency wise & consolidated SIR currency wise & consolidated STAT 5 BAL Statement Cost and yield statements Statement of distressed assets SFR Statement (Statement of foreign Currency balances held abroad) 13.199 Country exposure report 13.200 Structural liquidity report 13.201 Comparative figures of capital charge as per BASEL – II AND III & IMA guidelines 109

2 2 2

13.202 Cost & Yield of outstanding BUY / SELL foreign. Currency resources swap

2

13.203 Cost & Yield on Sources and Uses - foreign. Currency. 13.204 Arbitrage Report 0- between forex and domestic market

2 2

13.205 Daily report on o/s trading swaps - FX 13.206 Daily report on trading profits - Dealer wise / Cy wise 13.207 Report on derivatives showing MTM, booked P & L, PVBP, Accrual, Notional Amount

2 2 2

13.208 13.209 13.210 13.211 13.212 13.213 13.214

Risk Sensitivity Report on Derivatives Table Grid on Option Greeks Tenor wise distribution of greeks Table Grid on option book maturity profile Calculation of VAR and back testing Simulation Report - Investments Statutory Liquidity Requirement (STL) – to be generated for Treasury branch as a whole on daily basis

2 2 2 2 2 2 2

13.215 Interest Rate Sensitivity Report – to be generated for Treasury branch as a whole on daily basis

2

13.216 14 14.1 14.2

Bucket wise Report of Certificate of Deposits TOTAL SWAP TRADING P/L TOTAL CURVE WISE TRADING P/L RISK SENSITIVITY REPORT (Bucket wise / Curve wise PV01 distribution as on date)

2 64 2 4

14.3 GAP REPORT Interest Rate Gap Report (Currency wise – bucket wise)

4

14.4 TOTAL OPTIONS TRADING P/L 14.5 RISK SENSITIVITY REPORT (Option Greeks, Tenor wise Distribution of Greeks, Simulation, VaR)

2 4

14.6 14.7 14.8 14.9 14.10 14.11 14.12 14.13 14.14

Swaps Sales Activity Report CREDIT UTILISATION REPORT Total SWAPS SALES P&L REPORT Total PRODUCT-WISE SALES P&L REPORT REPORT OF TOP CLIENTS Total PRODUCT WISE SALES P/L Total HEDGE REPORT Options Sales Activity Report CREDIT UTILISATION REPORT 110

2 2 2 2 2 2 2 2 2

14.15 14.16 14.17 14.18 14.19 14.20 14.21 14.22 14.23

Total OPTIONS SALES P&L REPORT Total PRODUCT-WISE SALES P&L REPORT REPORT OF TOP CLIENTS Total OPTIONS SALES P/L Total PRODUCT WISE SALES P/L Total CLIENT REPORT Top 10 Swap Clients OPTION MATURITY REPORT Hedge Efficiency / Effectiveness Report in respect of all types of Derivative instruments used for Hedging purpose.

2 2 2 2 2 2 2 2 2

14.24 Activity Forecast Register along with ability to compute coupon amount if the rates have been reset for the floating leg

2

14.25 14.26 14.27 14.28 14.29 14.30 14.31 14.32

2 2 2 2 2 2 2 2

Deals Slips Deals Confirmations Interest Rate Reset Notice Settlement Notice Barrier Trigger Notice Shifting of securities as per RBI guidelines. Monthly payment of brokerage for bond deals. CSGL module should be available and it should strictly comply with RBI guidelines in respect of operational & reporting requirements. TOTAL MARKS

1000

111

Annexure-A (Acceptance of Terms and Conditions) (Letter to the bank on the bidder’s letterhead) (Letter of Authorization to submit RFP) To, The General Manager Union Bank of India Technology Centre, 5th floor, Department of Information Technology, Adi Shankaracharya Marg, Powai, Andheri (East), Mumbai, 400072 Dear Sir, Subject: Our bid for Implementation of Integrated Treasury Management System to Union Bank of India With reference to the above subject, having examined and understood the instructions, terms and conditions forming part of it, we hereby enclose our offer for the Implementation of Integrated Treasury Management System as detailed in your above referred RFP. We further confirm that the offer is in conformity with the terms and conditions as mentioned in the RFP and all required information as mentioned is enclosed. We also confirm that the offer shall remain valid for 90 days from the date of the offer. We hereby undertake that supporting software supplied, if required will be licensed, legally obtained and with latest version. We understand that the Bank is not bound to accept the RFP either in part or in full and that the Bank has right to reject the RFP in full or in part without assigning any reasons whatsoever. We understand that  You are not bound to accept the lowest or any bid received by you, and you may reject all or any bid.  If our Bid for the above job is accepted, we undertake to enter into and execute at our cost, when called upon by the purchaser to do so, a contract in the prescribed form. Unless and until a formal contract is prepared and executed, this bid together with your written acceptance thereof shall constitute a binding contract between us.  If our bid is accepted, we are to be responsible for the due performance of the contract.  You may accept or entrust the entire work to one Bidder or divide the work to more than one Bidder without assigning any reason or giving any explanation whatsoever.  Bidder means the bidder who is decided and declared so after examination of commercial bids.  We enclose Demand Draft/Bank Guarantee for 7,50,000/- (Rupees Seven lac fifty thousand only) favoring Union Bank of India and payable at Mumbai, towards bid security, details of the same is as under: 112

No.

:

Date

:

Name of Issuing Bank : Dated at ____________this ____________day of __________2015 We hereby declare that all the information & Statements made in this RFP are true and accept that any misinterpretation contained in it may lead to our disqualification. We agree to all terms & conditions of the RFP,

Yours faithfully,

Date:

For _________________________ Signature ____________________ Name _______________________

Authorized Signatories (Name & Designation, seal of the firm)

113

Annexure-B (BID Form) Ref No………………… Date:

Place:

To, The General Manager Union Bank of India, Technology Center, Department of Information Technology, Adi Shankaracharya Marg, Powai,Andheri(East), Mumbai – 400072 Dear Sir, Having examined the Request for Proposal (RFP) Ref No. ________ the receipt of which is hereby duly acknowledged, we, the undersigned, offer to supply, deliver, implement, customize and commission the various requirements in conformity with the said RFP for the sum mentioned in the Price Bid or such other sums as may be ascertained in accordance with the Schedule of Prices attached and made part of this Bid. We undertake, if our Bid is accepted, to deliver the goods/ provide the services in accordance with the Delivery Schedule / implementation schedule specified. We agree to abide by this bid for a period of 90 days from the last date of submission of Bid and shall remain binding upon us and may be accepted at any time before the expiration of that period. We further confirm that, in case we offer system and/or other software manufactured by another company, such software operates effectively on the system offered by us and we are willing to accept responsibility for its successful operations. Until a formal contract is prepared and executed, this bid, together with your written acceptance thereof and your Notification of Award, shall constitute a binding Contract between us. We undertake that, in competing for (and, if the award is made to us, in executing) the above contract, we will strictly observe the laws against fraud and corruption in force in India namely “Prevention of Corruption Act 1988”. Commissions or gratuities, if any paid or to be paid by us to agents relating to this Bid, and to contract execution if we are awarded the contract, are listed below:

Name & address of agent Amount & currency Purpose of commission or gratuity *(If none, state none)

We understand that you are not bound to accept the lowest or any bid you may receive. 114

Dated this........ Day of ............... 2015 (Signature) (In the capacity of) Duly authorized to sign bid with seal for & on behalf of (Name & Address of the Bidder)

115

Annexure-C (Bidder’s Profile Format)

Serial No.

Parameters

Response

1 Name of the Firm/Company

2 Year of Incorporation in India

3 Names of the Partners/Directors

4 Name and Address of the Principal Banker

5 Addresses of Firm/Company

a) Head Office

b) Local Office in Mumbai(if any)

6 Authorized Contact person

a) Name and Designation

b) Telephone number

c) E-mail ID.

7 Financial parameters

116

Business Results (last three years)

Turnover (in

Profit(in Crore)

Crore) 2011-12

2012-13

2013-14

(Only

company

mentioned.

figures Not

need to

to

be (Mention the above amount in INR only)

include

group/subsidiary Company figures) 8 Bidder’s experience in design, supply, Implementation and maintenance of Integrated Treasury Management System (in years) a)Experience in India

b)Global Experience

9. No. of Integrated Treasury Management System projects carried out by the company during last three year in India (give details) 10. Details of project executed with ( Integrated Treasury Management System)

117

Name of Customer

No. of Years in Use

Project 1

Project 2

Project 3

Authorized Signatories (Name & Designation, seal of the company)

Date:

118

Annexure-D (Documents for Eligibility Criteria)

Sr. Eligibility Criteria No

Documents Requested

Details

1. Bidder and all the Copy of the “Letter members of the of Incorporation/ consortium (if any) registration” must be companies incorporated in India and operating for the past 5 years. 2. The Bidder must be Relevant Certificates in business of to be provided implementation and support of the Integrated Treasury Management application minimum for past 3 years in India. 3. The bidder submitting the offer should have a turnover of minimum Rs. 100 Crore per year for the completed immediate last three Financial Years.

Certified / Audited Balance Sheets and P&L for immediate last 3 Financial years.

4. The Bidder should have reported net Profit for the completed immediate last three Financial Years.

Certified/Audited P&L statements for immediate last 3 Financial years.

119

Ref Page Remarks No

Supporting Document Provided by bidder

5. The solution proposed should have been implemented in two banks with a business mix of minimum Rs. 1 lac crore each, out of which atleast one bank should have business mix of minimum Rs. 3 lac crore. One of the above implementation should be in India.

Letter from user organization mentioning successful implementation of Integrated Treasury Management System.

6. The bidder should have successfully implemented the proposed solution at least in one bank with a business mix of minimum Rs. 1 lac crore on or before 31.03.2014.

Letter from user organization mentioning the same.

7. The proposed solution should have transaction accounting level integration with core banking solution in at least one bank in India.

Letter from user organization, where the transaction accounting level integration with CBS done successfully.

8. The proposed solution should have been integrated with market risk solution in at least one bank

Letter from user organization, where the integration with market risk solution done successfully.

120

in India.

9. Bidder should have not been black listed at any time by the Central /any of the State Governments/ PSUs in India or abroad, any Financial Institutions in India or abroad. In case, in the past, the name of their Company was black listed by any of the Govt. Authority or PSUs, the name of the company or organization must have been removed from the said list as on date of submission of the RFP, otherwise it will not be considered. An undertaking to this effect must be submitted in their letter head.

Undertaking by authorized signatory (on their letter head) that they have not been black listed by any of the Govt. Authority or PSUs

121

Annexure-E (Letter of Authorization for attending RFP/Tender Opening) (To reach GM (DIT) before date of RFP opening)

To The General Manager, Union Bank of India, 1/1A Technology Center, Adi Shankarcharya Marg, Opp. Powai Lake, Powai, Mumbai– 400072

Subject: Authorization for attending tender opening on _________ (date) in the RFP of Integrated Treasury Management System.

Following persons are hereby authorized to attend the RFP process mentioned above On behalf of ____________________________________ (Bidder) in order of preference given below. 1. Name: Signature: 2. Alternative Representative

Signature of bidder or Officer authorized to sign the RFP Document On behalf of the bidder Note: 1. Maximum Two representatives will be permitted to attend RFP opening. Alternative representative will be permitted when regular representative is not able to attend. 2. Permission for entry to the hall where RFPs are opened may be refused in case authorization as prescribed above is not received.

122

Annexure-E1 (Un-priced Bill of Material) Commercial bid format table (without the prices) should be submitted along with the technical bid as “Un-priced bill of Material”. Any mention of prices in this would lead to disqualification of the bidder. Taxes, Duties, Levies, Charges (B) YES/NO

YES/NO

2 Cost of onsite support for one year (For YES/NO one L1 and one L2 resident engineer at Mumbai after completion of one year from Go-live).

YES/NO

YES/NO

3 ATS for one year after expiry of YES/NO warranty period

YES/NO

YES/NO

4 Any other services / Additional tools YES/NO (Please Specify)

YES/NO

YES/NO

Serial No.

Requirement / Quantity

Basic Price (A)

1 Cost of Integrated Treasury YES/NO Management System including Implementation Cost and post go live support for One year (including migration, customization, Reports, post go live support by 2 L2 engineers for One year )

Total

Total Cost C=(A+B)

XXX

Please provide break-up of “Any other cost” Notes: 1. For the purpose of TCO, one year post go live on-site support and ATS is considered. However the rates for support will be valid for 5 years after completion of first year support. The on-site support will start from the date of go live and ATS will be applicable after completion of warranty period ( 1 year after Go Live) 2. The Commercial Offer should be given in the above format only. 3. There should be no conditions mentioned in the Commercial Offer. 4. Commercial offers with conditions will be rejected. 5. All costs should be only in Indian Rupees and all payments will also be only in Indian Rupees. 6. The ATS rate for the Software shall be frozen for the period of 5 years. 7. The Post implementation onsite support rate for the Software shall be frozen for the period of 5 years. Authorized Signatories (Name & Designation, seal of the company) Date: 123

Annexure-E2 (Bill of Material)

Serial No.

Requirement / Quantity

Basic Price (A)

Taxes, Duties, Levies, Charges (B)

Total Cost C=(A+B)

1 Cost of Integrated Treasury Management System including Implementation Cost and post go live support for One year (including migration, customization, Reports, post go live support by 2 L2 engineers for One year ) 2 Cost of onsite support for one year (For one L1 and one L2 resident engineer at Mumbai after completion of one year from Go-live). 3 ATS for one year after expiry of warranty period 4 Any other services / Additional tools (Please Specify) Total Please provide break-up of “Any other cost” Notes: 1. For the purpose of TCO, one year post go live on-site support is considered. However the rates for support will be valid for 5 years after completion of first year support. The on-site support will start from the date of go live. 2. The Indicative Commercial Offer should be given in the above format only. 3. There should be no conditions mentioned in the Commercial Offer. 4. Commercial offers with conditions will be rejected. 5. All costs should be only in Indian Rupees and all payments will also be only in Indian Rupees. 6. The ATS rate for the Software shall be frozen for the period of 5 years. 7. The Post implementation onsite support rate for the Software shall be frozen for the period of 5 years.

Authorized Signatories (Name & Designation, seal of the company) Date:

124

Annexure-I (Reference Site Details) The reference sites submitted must be necessarily of those banks where the proposed vendor/ OEM’s product has been awarded the contract prior to 31st Dec, 2014 For those references where the offered solution is accepted but implementation is not started, the acceptance should be valid as on the last date for submission of bids at Union Bank of India. Please provide reference details in the format defined below: Particulars Name of the Bank/ Financial Institution Country of Operation Address of the Organization

Response

Annual Turnover of the Organization for the completed immediate last three Financial Years. Date of commencement of Project Date of completion of Project Scope of Work for Solution Number of concurrent users and the geographical spread of the implementation Average Team size for the entire project Name of the contact person for reference

125

Annexure-J (Financial Position of Bidder for last 3 financial years (in Rs. Crores) ) Paid up capital Tangible Net Worth (excluding Revaluation Reserve) Net Sales of the Company Gross Profit Net Profit (Profit After Tax)

2013-14

2012-13

2011-12

Note: Enclose 1. Copies of Audited Balance Sheets and P&L statements along with enclosures for last 3 financial years 2. Copies of Articles of association and Memorandum of Association 3. Copies of certificate of incorporation/certificate of commencement of Business

Place: Date: Signature: Name & Designation: Business Address:

126

Annexure-K (Implementation Team Profile) Vendor Implementation Capability Requirement

Response

Current strength of employees in the vendor organization with experience on the proposed product(s) Current strength of employees in the vendor organization with experience in similar projects Does the team posses in‐depth knowledge of the industry and is thereby capable of bringing independent market knowledge to the bank?

Certifications possessed by the Bidder in connection with the quality of internal processes and services delivered/ methodology used in delivery

Approach to ensure adequate quality control throughout the course of the project Team Profile Name Response Designation Professional Qualifications Experience with the bidding firm Experience with other companies Membership in any professional body Details of projects handled with details of client, representing which organization, as member of the team or team leader etc

127

Note: • Include details of team members who will be involved in the project. • Relevant experience refers to the experience of the employee on either exactly the same product / set of products being proposed or on similar projects. • Proposed team structure with count, profile and skills to be provided by bidder along with proposed solutions profile, #, skills, etc to be provided in RFP response

128

Annexure-L (Training Requirements) Sr. No.

Requirements How many Implementation trainings have been 1 undertaken by the Bidder so far? Please provide a brief description on the Training 2 approach taken by the Bidder.

Response

3 Please provide the following details for training : Number of man‐days / duration for completion of 3.1 training 3.2 Optimum batch size Pre‐requisites / Preparations required before 3.6 training Please answer the following about the trainers in‐charge of conducting the training on behalf of 4 the Bidder for the Bank: Median experience of all trainers with the Bidder 4.1 who would be involved with the Project Please specify the various modes through which the training will be delivered? [e.g. Classroom training, Online self‐help training modules within 6 application / e‐learning modules, Quiz, etc] Training is required for all the end users in Mumbai. Training would be conducted at one identified location with proper batch size. Infrastructure (Class room, projector, and screen) will be provided by the bank.

129

Annexure-M (Project Management Methodology)

Sr. No. Requirements 1 Details of methodology / approach The methodology section should adequately address the following stages of the project 1.1 Frequency and approach for periodic reporting on the progress of the project and actual status visa‐ vis scheduled status 1.2 Detailed Study of Current State, with detailed work steps and deliverables 1.3 Gap analysis including identification and resolution of gaps 1.4 Customization, development and necessary work around 1.5 Building up of interfaces with various applications currently used by the blank 1.6 Setting up of the disaster recovery site with necessary replication 1.7 User acceptance testing 1.8 Planning for roll‐out and identification of key issues that may arise along with proposed solutions 2 Timelines Project management activities 3 Roles and responsibilities of proposed personnel both from the vendor and bank end 4 Following details with respect to the methodology followed by the vendor in Project Management for a Public Sector Bank 5 Project Name Project Location Client Name Client address Client contact/reference Person(s) Project started (month/year) Project elapsed time – months Man‐months effort 130

Response

Project Size (No of branches, modules covered and any other relevant details) Name of senior project staff Nature of the Project Project Management Methodology used Role of the Bidder, whether complete end‐to‐end involvement or for a particular module Project detail (Broad detail – information about all activities handled, modules forming part of the Integrated Treasury Management System of the Client Bank, associated activities, time lines activity‐wise and module wise may be detailed.)

131

Annexure-N (Bank Guarantee for EMD) Date: To, Department of Information Technology, Union Bank of India, 1/1A , Adi Sankaracharya Marg, Opp, Powai Lake, Powai. Andheri East , Mumbai - 400072 Dear Sirs, In response to your invitation to respond to developing and implementing the Integrated Treasury Management System. M/s __________________ having their registered office at _____________ (hereinafter called the Bidder) wish to respond to the said Request for Proposal (RFP) and submit the proposal for the same. Whereas the Bidder has submitted the proposal in response to RFP, we, the ____________ Bank having our head office ________________ hereby irrevocably guarantee an amount of Rs. ………./‐ (Rupees ……… only) as Bid security as required to be submitted by the Consultant as a condition for participation in the said process of RFP. The Bid security for which this guarantee is given is liable to be enforced/ invoked: 1) If the Bidder withdraws his proposal during the period of the proposal validity; or 2) If the Bidder, having been notified of the acceptance of its proposal by the Bank during the period of the validity of the proposal fails or refuses to enter into the contract in accordance with the terms and conditions of the RFP or the terms and conditions mutually agreed subsequently. 3) If the Bidder, if selected for awarding the Contract, fails to renew this Bank Guarantee as decided by Union Bank of India. We undertake to pay immediately on demand to Union Bank of India, the said amount of Rs. …………..‐ (Rupees ……….. only) without any reservation, protest, demur, or recourse. The said guarantee is liable to be invoked/ enforced on the happening of the contingencies as mentioned above and also in the RFP document and we shall pay the amount on any demand made by Union Bank of India which shall be conclusive and binding on us irrespective of any dispute or difference raised by the Bidder. Notwithstanding anything contained herein: 1) Our liability under this Bank guarantee shall not exceed Rs. ………./‐ (Rupees ……… only). 2) This Bank guarantee will be valid up to 180 days and 3) We are liable to pay the guaranteed amount or any part thereof under this Bank guarantee only upon service of a written claim or demand by you on or before ________________. In witness whereof the Bank, through the authorized officer has sets its hand and stamp on this _______________ day of __________________ at _________________. Signature …………………………………… 132

Name ………………………………………… (In Block letters) Designation ………………………………… (Staff Code No.)…………………………….. Official address: (Bank’s Common Seal) Attorney as per power of Attorney No. Date: WITNESS: 1……………………………………………… (Signature with Name, Designation & Address) 2……………………………………………… (Signature with Name, Designation & Address)

133

Annexure-O (Project Timelines) S. No. Project Milestones 1. Period within which Performance Security or amendment thereto is to be submitted by the successful Bidder upon notification of award of contract 2 Period for the entire solution to be ready for commissioning after the award of contract. 3 Trainings to Functional and Technical Team (Separate Batches)

134

Timelines 30 days (grace period of 4 days) 12 months Within Timline Mention above S.No 2

Annexure-P (Manufacturers’ / Producers’/ Authorization Form) Note: This letter of authority should be on the letterhead of all the original equipment manufacturers and should be signed by a person competent and having the power of attorney to bind the manufacturer. No.

Date:

To: Department of Information Technology, Union Bank of India,1/1A , Adi Sankaracharya Marg, Opp, Powai Lake, Powai. Andheri East , Mumbai - 400072 Dear Sirs, Ref: Procurement of Integrated Treasury Management System We who are established and reputable manufacturers/producers of _______________________ having factories / development facilities at (address of factory / facility) do hereby authorize M/s ___________________ (Name and address of Agent) to submit a Bid, and sign the contract with you against the above Bid Invitation. We hereby extend our full guarantee and warranty for the Solution, Products and services offered by the above firm against this Bid Invitation. We also undertake to provide any or all of the following materials, notifications, and information pertaining to the Products manufactured or distributed by the Bidder: a) Such Products as the Bank may opt to purchase from the Bidder, provided, that this option shall not relieve the Bidder of any warranty obligations under the Contract; and b) in the event of termination of production of such Products: i. advance notification to the Bank of the pending termination, in sufficient time to permit the Bank to procure needed requirements; and ii. Following such termination, furnishing at no cost to the Bank, the blueprints, design documents, operations manuals, standards, source codes and specifications of the Products, if requested. We duly authorize the said firm to act on our behalf in fulfilling all installations, Technical support and maintenance obligations required by the contract. Yours faithfully, (Name of Authorized Signatory) (Designation) (Name of Producers)

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Annexure-Q (Format of Bank Guarantee) (Covering Delivery obligations) NOTE: 1. This guarantee should be furnished by a Nationalized Bank / Scheduled Bank, other than Union Bank of India, as per the following format. 2. This bank guarantee should be furnished on stamp paper value as per Stamp Act. (not less than Rs. 500/-). 3. The stamp paper should be purchased either in the Name of the Bank executing the Guarantee or in the name of Union Bank of India. 4. This Bank Guarantee should be furnished within 30 days from the date of purchase order or the delivery period prescribed in the purchase order whichever is earlier. 5. This Bank Guarantee should be directly sent to the Purchaser by the Issuing Bank under RPAD.

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To Union Bank of India, 5th floor, Technology Centre, Union Bank of India, Adi Shankaracharya Marg, Opp. Powai Lake, Powai, Andheri (East), Mumbai‐400072. Dear Sir, In consideration of Union Bank of India, 5th floor, Technology Centre, Adi Shankaracharya Marg, Opp. Powai Lake, Powai, Andheri (East), Mumbai‐400072, placing an order for Implementation of Integrated Treasury Management System on __________________ having registered office at _____________________ (hereinafter called the vendor) as per the purchase contract entered into by the vendor vide purchase contract no ____________ dated __________ (hereinafter called the said contract), we ________________( Name of the Guarantor Bank), a 'schedule bank', issuing this guarantee through its branch at __________ presently located at __________________________________________________________ (hereinafter called the bank), do hereby irrevocably and unconditionally guarantee the due performance of the vendor as to the Implementation of Integrated Treasury Solution as per the said contract entered into by the vendor with you. If the said vendor fails to implement or maintain the system or any part thereof as per the contract and on or before the schedule dates mentioned therein, we _____________ (Name of the Guarantor Bank), do hereby unconditionally and irrevocably agree to pay the amounts due and payable under this guarantee without any demur and merely on demand in writing from you during the currency stating that the amount claimed is due by way of failure on the part of the vendor or loss or damage caused to or suffered / or would be caused to or suffered by you by reason of any breach by the said vendor of any of the terms and conditions of the said contract, in part or in full. Any such demand made on us shall be conclusive as regards the amount due and payable under this guarantee. However our liability under this guarantee shall be restricted to an amount not exceeding Rs. 7,50,000/(Rupees Seven Lacs Fifty Thousand Only) within the validity period of this guarantee. We ______________( Name of the Guarantor Bank), further agree that this guarantee shall continue to be valid will you unless you certify that the vendor has fully performed all the terms and conditions of the said contract and accordingly discharge this guarantee, or until ______________ , whichever is earlier. Unless a claim or demand is made on us in writing under this guarantee on or before ______________, we shall be discharged from all our obligations under this guarantee. If you extend the schedule dates of performance under the said contract, as per the terms of the said contract, the vendor shall get the validity period of this guarantee extended suitably and we agree to extend the guarantee accordingly at the request of the vendor and at our discretion, provided such request is served on the bank on or before ______________. Failure on part of the vendor in this respect shall be treated as a breach committed by the vendor and accordingly the amount under this guarantee shall at once become payable on

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the date of receipt of demand made by you for payment during the validity of this guarantee or extension of the validity period. You will have fullest liberty without affecting this guarantee to postpone for any time or from time to time any of your rights or powers against the vendor and either to enforce or forebear to enforce any or all of the terms and conditions of the said contract. We shall not be released from our liability under this guarantee by the exercise of your liberty with reference to matters aforesaid or by reason of any time being given to the vendor or any other forbearance act or omission on your part or any indulgence by you to the vendor or by any variation or modification of the said contract or any other act, matter or thing whatsoever which under the law relating to sureties would but for the provisions hereof have the effect of so releasing us from our liability hereunder. In order to give full effect to the guarantee herein contained you shall be entitled to act as if we are your principal debtors in respect of all your claims against the vendor hereby guaranteed by us as aforesaid and we hereby expressly waive all our rights of surety ship and other rights if any which are in any way inconsistent with the above or any other provision of this guarantee. The words the vendor, the beneficiary of this guarantees i.e. Yourself, and ourselves i.e. __________________( Name of the Guarantor Bank), unless repugnant to the context or otherwise shall include their assigns, successors, agents, legal representatives. This guarantee shall not be effected by any change in the constitution of any of these parties and will ensure for and be available to and enforceable by any absorbing or amalgamating or reconstituted company or concern, in the event of your undergoing any such absorption, amalgamation or reconstitution. This guarantee shall not be revocable during its currency except with your prior consent in writing. This guarantee is non-assignable and non-transferrable. Notwithstanding anything contained herein above: I) Our liability under this bank guarantee shall not exceed Rs. 7,50,000/- (Rupees Seven lac fifty thousand only) II)

This bank guarantee shall be valid upto _____________.

III) We are liable to pay the guaranteed amount or any part thereof under this bank guarantee only if you serve upon us a written claim or demand (and which should be received by us), on or before ____________ before 12:00 hours (Indian standard time) where after it ceases to be in effect in all respects whether or not the original bank guarantee is returned to us. This guarantee deed must be returned to us upon expiration of the period of guarantee.

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Signature …………………………………… Name ………………………………………… (In Block letters) Designation ………………………………… (Staff Code No.)…………………………….. Official address: (Bank’s Common Seal) Attorney as per power of Attorney No. Date: WITNESS: 1……………………………………………… (Signature with Name, Designation & Address) 2……………………………………………… (Signature with Name, Designation & Address)

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