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1. 10 37 Funds Position As on 2 10 38 Weekly statement of Transactions 2 10 39 Transaction During a Period 2 10 40 Statement of Term Dynamic Liquidity 2 10 41 State wise Exposure Report 2 10 42 Charges statement 2 10 43 Exceptions Reports During a Day Grouped 6 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 amp Loss account Balance sheet FxJV JV INR module 11 ONLINE DEALERS PAD 82 11 1 Online Portfolio 2 11 2 Deal Note 2 11 3 Deal Notes For a Day 2 11 4 Deal Tickets 2 11 5 Deal Ticket Equity 2 11 6 Deal Tickets for a date 2 11 7 Deal Details Date wise 2 11 8 Deal Details Counter Party wise 2 11 9 Deal Details Security wise 2 11 10 Consolidated Deal Details 2 11 11 Deal Detail Between Two Dates 2 11 12 Deal Details Value date wise Between Two 2 Dates 11 13 New Consolidated Deal Details 2 11 14 New Consolidated deal details dealerwise 2 11 15 Profit Statement As of Latest Deal 2 11 16 Category wise Monthly Profit 2 11 17 Detail Security Holding 2 11 18 Branch Wise Holding Summary 2 11 19 Deal Letter To Branch 2 11 20 Same Day Same Security Trading 2 11 21 Miscellaneous Voucher 2 11 22 Summary Transactions Sheet 2 11 23 Inter Bank Deal Slip 2
2. 8 5 Generation of margin files to be 2 uploaded in exchanges 8 6 Generation of M duration report Origin 2 8 7 Friday MTM calculation 2 8 8 Calculation of capital charge 2 8 9 Mail to client on daily basis MTM 2 Contract Note Quarterly Statement Position Statement 8 10 All reports to be generated in all types of 2 reporting format 8 11 Alerts of reporting of required reports 2 as per the frequency 8 12 Margin alerts 2 8 13 Counter party limit updating 2 8 14 Collateral limit updating 2 8 15 Deal confirmation 2 8 16 Reporting of MTM to client and branch 2 on different intervals through Emails 8 17 Calculation of current exposure potential 2 future exposure total exposure etc all on specified dates and as per maturity bucket 8 18 Generation of backdated PVO1 report 2 8 19 Calculation of VAR value at risk 2 8 20 Updating of compliance officer particulars 2 8 21 Real time settlement 2 8 22 Calculation of Turnover fees transaction 2 charges for various exchange 8 23 Calculation of stamp duty of exchange 2 transactions 8 24 Generation of reports as per filter 2 8 25 Exchange turnover contra entries to 2 be posted automatically 9 MASTER ONE TIME DATA CAPTURE 4 9 1 Counter parties The system should 2 be able to capture the following details e g Name Credit Rating Address amp phone no Status Active Inactive Limits Settlement instructions for Forex and derivatives transacti
3. Punjab National Bank REQUEST FOR PROPOSAL RFP FOR WEB BASED APPLICATION FOR FOREX OPERATIONS Information Technology Division I T Procurement Department Head Office 5 SansadMarg New Delhi 110 001 Tel 011 23311452 23710021 Extn 228 233 234 408 Fax 011 23321305 23320306 DISCLAIMER The information contained in this Request for Proposal Document RFP Document or subsequently provided to Bidder s whether verbally or in documentary form by or on behalf of the Punjab National Bank or any of their representatives employees or advisors collectively referred to as Bank Representatives is provided to Bidder s on the terms and conditions set out in this RFP Document and any other terms and conditions subject to which such information is provided This RFP Document is not an agreement and is not an offer or invitation by the Bank Representatives to any party other than the entities who are qualified to submit their Proposal Bidders The purpose of this RFP Document is to provide the Bidder with information to assist the formulation of their Proposal This RFP Document does not purport to contain all the information each Bidder may require This RFP Document may not be appropriate for all persons and it is not possible for the Bank Representatives their employees or advisors to consider the investment objectives financial situation and particular needs of each party who reads or uses thi
4. 13 19 Cumulative trading profit between any two dates dealer wise currency wise 13 20 At the time of input of IB swap deals there should be a provision to mark the deal not for revaluation by default yes for revaluation 13 21 Generation of Gap statement with resources deployment in the respective bucket of maturity AGL amp IGL 13 22 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 23 Facility of inputting inter bank USD INR Web based application for Forex operations Page 58 of 11 deals as for CCIL settlement or RTGS settlement CCIL should appear by default in all USD INR deals 13 24 Facility of getting a report of net USD 2 purchase or sale under CCIL for each value date 13 25 Dealer position pad should be updated on 2 real time basis 13 26 Import EDC gain should be captured in the 2 system 14 Facility of revaluation with the appropriate 6 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 o
5. If a bidder quoting higher prices higher by more than 40 as compared to the average quoted prices of all technically qualified bidders for all items in aggregate the same bidder shall not be called for reverse auction process 32 CONTACTING PNB OR PUTTING OUTSIDE INFLUENCE Bidders are forbidden to contact PNB or its Consultants on any matter relating to this bid from the time of submission of commercial bid to the time the contract is awarded Any effort on the part of the bidder to influence bid evaluation process or contract award decision may result in the rejection of the bid 33 VERIFICATION OF REFERENCE INSTALLATIONS PNB may if deemed necessary conduct verification of reference installation to satisfy themselves on the performance of the equipment services offered with reference to their requirements 34 CANCELLATION OF BID BIDDING PROCESS PNB reserves the right to accept or reject any bid and annul the bidding process and reject all bids at any time prior to award of contract without thereby incurring any liability to the affected bidder or bidders or any obligation to inform the affected bidder or bidders of the ground for its action 35 NON DISCLOSURE By virtue of Contract as and when it is entered into between the Bank and the successful bidder and its implementation thereof the Successful Bidder may have access to the Confidential Information and data of the Bank and its customers The Successful Bidd
6. p In case of Interest payments in the RFC Saving RFC 2 Fixed Deposit there should be a provision in the system for showing principal amount interest credited amount and interest paid amount with date q For Cash letters there should be a facility to mark 2 returning of cheques in the system r Report of returning of cheques should also be made 2 available S Report for FCNR lodging should be made available 2 t Report of Outstanding of Collection of cheques 2 FOCBC should be made available u Report for lodging and realization of cheques for a 2 particular period should be available having details e g number of cheques amount in foreign currency and amount in rupees V Report of progress for a particular period should be 2 available W Reports of overdue Purchase bills currency wise 2 X Reports of Outstanding Purchase bills 2 y FCNR opening by closing any existing FCNR a c or 2 vice versa Z Resource revaluation on notional rate change 2 Vouchers for credit debit amount to be passed on to our CBS Finacle 14 2 6 GOLD 16 a Provision for confirmation of trade deals 2 b Branch wise metal loan register 2 C Reconciliation of stock and loans with branches as well 2 as suppliers d Daily MTM of metal delivered on Unfix basis 2 e Data value in numbers should be allowed up to min five 2 decimal points f Provision for custom duty 2 g Modification of an authorized deal Change in value 2 date price
7. 3 5 Ability to view all positions on a real time basis including P amp 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 Web based application for Forex operations 16 Page 51 of 11 5 1 Ability to offer global pricing amp 2 pricing tool functionality 5 2 Ability to offer predefined templates to 2 facilitate pricing for primary and secondary traded products 5 3 Ability to provide pricing functions 2 and utilities integrated into the system to calculate instrument prices Greeks and position equivalents for r
8. Page 77 of 11 Report of all DLFCNR Branchwise Currencywise Report of Overdue DLFCNR Branchwise Currencywise Report of all DLFCNR going to be due in next 30 months in the form of a letter to be sent to Branches LOC Line Of Credit Opening Closure Payment of Interest monthly quarterly Half yearly Yearly as per the case DEPO INVM Deposits Investments Opening Closure Payment of Interest monthly quarterly Half yearly Yearly as per the case LOBORR Reciprocal Deposits Opening Closure Payment of Interest on USD as well as INR Leg on monthly quarterly half yearly Yearly as per the case FCNR SWAP Opening Closure Payment of Interest on USD as well as INR Leg on monthly quarterly Half yearly Yearly as per the case Refinance from SIDBI NABARD EXIM etc REPORTS Generation of Daily Asset and Liability statement taking into account previous day balances of INVM LOC LOBORR Swaps etc aa Generation of Weekly Cost and Yield statement taking into account balances of INVM LOC LOBORR Swaps Also the balances of FCNR Interest in this report should comprise of the FCNR Interest paid amount as well ab Generation of Report of all FCL FCTL s which are going to mature in the next 90 days ac Generation of Stat 5 Report ad Monthly Revaluation Report ae Monthly amortization report 14 2 5 FCNR amp EEFCA amp Cash Letter Whe
9. 9 5 Credit Default Swap 2 9 6 Other Derivative Products allowed by the 2 Regulators from time to time 10 Front Office activities to be supported 86 10 1 System should maintain real time currency 2 position for each dealer 10 2 System should maintain real time currency 2 position across dealers 10 3 Facility to capture derivative deals through 2 user friendly screens 10 4 Facility to enter Swap deals in cryptic mode 2 for quick capturing 10 5 Standard Settlement Instructions 2 should be automatically defaulted based on deal parameters 10 6 Facility to copy existing deal to generate new 2 deal 10 7 Facility to mirror existing deal to generate 2 back to back deal 10 8 System should support generation of deal 2 tickets 10 9 Facility for stripping of currency options 8 in to multiple options shortcut feature for deal definition with change of 10 9 1 strike price and 2 10 9 2 barrier price and 2 10 9 3 expiry dates to exact month quarter semi 2 Web based application for Forex operations Page 95 of 11 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 10 13 System
10. 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 Fixed Business Day Convention The system should be able to support International Web based application for Forex operations Page 42 of 11 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 The system should allow users to input calendar schedules at least 10 years forward The s ystem should be able to edit and over ride global calendar and holiday tables The system should be able to move value dates based on holidays declared at the last moment 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 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 sy
11. d Facility to view Cancellation rate SPOT PREMIUM e Facility to view party name along with party code N Saal The system should store details like PAN card mobile number for CCIL reporting For parties booking contracts 1 mio and above which needs to be fetched from F O application g The system should store party s industry type and rating for our use h Option of assigning CCIL client id and make it visible to us for CCIL reporting for parties booking contracts 1 mio and above i EDC Calculation and payment by system at the time of early delivery j Forward contracts purchase sale outstanding reports on daily basis Partywise Branchwise P S currency wise k MTM daily monthly fortnightly at FEDAI rate including currency deals l Generate report as per CCIL requirement Booked Util Canc for parties booking contracts 1 mio and above m Auto generation of contract note confirmation and send via email branch wise n Generate Application and Confirmation received report O Daily sundries and suspense reports p Cancellation and Rebooking demarcation between rebooking and rollover q Customer profiling including monitoring of limits contracted method amp 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 lim
12. documentation training etc Price should be quoted separately for all the items and with required configuration details for calculating arriving at the total cost of ownership PURPOSE OF THE RFP e Purpose of RFP is to solicit proposals from qualified bidders for providing solution amp services for implementation of web based software for FOREX Operations of Treasury for PNB Technical and commercial bids are invited from bidders to install and maintain the software for Web Based Application for Forex Operations as per the terms and conditions mentioned hereunder e Bank desires to procure a new web based software for FOREX Operations an end to end solution as per the market standards addressing all RBI requirements as well as satisfying all our technical requirements and functional requirements detailed below 2 ELIGIBILITY CRITERIA 2 1 The bidder company should be registered in INDIA as per the companies act or have its registered office within the jurisdiction of INDIA 2 2 The bidder s Support centre should be located at Mumbai In case bidder is not having support centre at Mumbai bidder should give undertaking to open the support centre in Mumbai within 1 month of award of tender 2 3 The bidder should be engaged in providing implementing such software solution in India for last 3 years 2 4 The turnover of bidder parent company of the bidder for the last three financial years must be not less than Rs 15 Crore
13. gateways etc Interface workflows should be configurable 1 7 Interface should support various file 2 formats for Import and Export CSV XML FpML ASCII etc 1 8 Ability to integrate custom connectivity 2 1 9 System should support error handling 2 and notifications for interface and workflow related errors 1 10 System must provide tools for reconciliation of 2 Web based application for Forex operations Page 101 of 11 oO data imported exported from external systems including SGL Account holding from E Kuber 2 Regulatory Reports 60 2 1 Should include but not 2 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 3 FTD Forex Turnover Data 2 2 4 Counterparty Exposure Counterparty limit 2 exposure Report 2 5 OFCB Overseas Foreign Currency Borrowing 2 report 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 2 Sensitivity 2 10 IRSM Interest Rate Sensitivity Monitor return 2 2 11 CRAR Capital Adequacy Return reports 2 IC 4 IC 5 IC 6 2 12 RBI Daily Position summary 2 NORD Non Option Rupee Derivatives Monthly Quarterly 2 13 SFR II amp Ill Special Fortnightly Return Il amp Ill 2
14. 16 9 Outstanding Deal Register 2 16 10 Deal Cancellation Register 2 16 11 Unconfirmed Deal Register 2 16 12 Overdue Contract Register 2 16 13 Settled Deal Register 2 16 14 Maturity Deal Listing 2 16 15 Maturity list of Lending and Borrowing 2 16 16 Mark to market of net open positions 2 16 17 Bills overdue for Delinking 2 16 18 Forex Turnover in multiple currencies equivalent to 2 any particular currency 17 DEAL CONFIRMATION 16 17 1 The system should be able to adopt 2 standard confirmation procedures for all products 17 2 The system should provide the flexibility to customize 2 separation between the users of front and back office 17 3 The system should allow for viewing of queue of 2 transactions pending confirmation 17 4 The system should provide ticker listing of all 2 transactions pending settlement or confirmation 17 5 The system should be able to assign tags confirmed 2 verified for trades based on user access level 17 6 The system should have the ability to generate deal 2 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 2 be possible for users to send hard copies to counterparties brokers issuers 17 8 System should have the ability to unmark deals 2 marked for settlement through CCIL or CLS for Forex Page 86 of 11 transactions 18 PRINTING 18 1
15. 8 TRANSACTION TAGGING and 4 REPORTING 8 1 All transactions should be tagged by 2 product and transaction codes 8 2 Reporting should be facilitated on 2 transactions on products on the minimum parameters like Products Transactions and Status in the workflow process 9 PROFITABILITY REPORTING 6 9 1 The system should allow for profitability 2 reporting by product as specified in respective chapters 9 2 Products should support multi currency 2 features proposed in the GL 9 3 All incomes amp expenses should by default 2 be system calculated and the system should not complete the transaction unless any modifications to the default values are duly authorized 10 BOOKS OF ACCOUNTS 6 10 1 The system should have the ability 2 to maintain separate books of accounts 10 2 The system should have the ability to 2 define any currency as the base currency Web based application for Forex operations Page 44 of 11 and prepare books of accounts in the base currency as well 10 3 The system should have the ability to 2 maintain books of accounts in both home currency and foreign currency 11 ACCOUNTING STANDARD 10 11 1 The system should support AS 11 4 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 2 enabling AS 11 acco
16. 9 FC BONDS 14 1 1 EEFC amp EEFC TD Exchange Earners Foreign Currency Account Scheme NO PO PO PO DO PO PO 14 1 1 In crystallization of Export Bill correct accounting entries to recover pay the rate difference amount through system should be there 14 2 DESK WISE USER REQUIREMENTS 14 2 1 EXPORT BILLS COLLECTION Report for all Export collection bills lodged should be available for 18 months at a stretch Report for outstanding bills pertaining to Collection and Purchase Negotiated Bills as on a date for a future date Original bill amount and the outstanding remaining amounts should be visible in the reports and these reports should be available in currency party and date wise Standard EDCs for the day should be incorporated in the system on the lines of card rates and changes in case of special cases should be left to the Authorised Officer The mode Authorise Modify Delete should be visible at all times to the Authorised Officer and If authoriser is in Delete mode system should prompt throw a pop up that the transaction is about to be deleted before deleting EEFC should be available for part realisations also and confirmation of recording of date of transaction in EEFC account available A remarks window to be available and visible always to view any cautionary or other remarks relating to the bill and invariably have the date time name o
17. 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 Web based application for Forex operations Page 49 of 11 market data and failover capabilities System should support upload of market 2 data from external sources e g Excel files System should support error 2 handling and notifications for market data errors Total Marks 272 Functional Requirements Sr No Business Process Max S C Comments Marks 1 Deal Capture and Execution 18 1 1 Deals capture facility including 2 amendment and reversal 1 2 Ability to download upload deal 2 transaction from external files and interface with dealing platforms available to various desks 1 3 Ability to offer quick entry of trades 2 capturing customer spreads and back to back cover with interbank desks 1 4 Ability to automate blotter functionality 2 1 5 Ability to facilitate internal deals and inter 2 desk 1 6 Pre deal limit check and limit reservation 2 facility 1 7 Handling of scheduled and 2 unscheduled holidays across different countries different centres and different product
18. Issuer wise limits Broker wise Turnover limits Stop Loss limits both deal wise and on periodic basis 9 4 The system should be able to generate view and print positions reports with fair market value provided by information feeds 9 5 The system should be able to generate view and print positions reports 9 6 The system should enable querying of limits at an individual as well as aggregate level 9 7 The system should be able to identify online breaching of limits on Web based application for Forex operations Page 65 of 11 consolidated basis and segment basis and generate exceptional report 9 8 Exposure monitoring branch wise 10 RATE SCAN LIMIT amp 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 pre settlement Settlement Issuer Currency Broker Gap Authorization Stop Loss Limits etc duration M Duration PV01 etc The breach in exposure norms amp limit as referred above must give alert messages on screen pop ups to back office front office and generate exception report amp audit trail on daily basis 11 MARKET RISK MANAGEMENT SYSTEM 20 11 1 VaR Methodologies The
19. Multiple options 2 1 8 Derivative strategies like Ratio Range Forward 2 Extra Seagull Straddle Butterfly among others 9 1 9 Greeks Plain vanilla 2 9 2 Interest Rate Swaps 28 9 2 1 Plain Vanilla 2 9 2 2 Basis Swap 2 9 2 3 Overnight Indexed swap 2 9 2 4 Amortizing swap 2 9 2 5 Accretion Swap 4 9 2 5 1 In Advance In Arrears 2 9 2 5 2 Interest Rate Caps Floors Collars 2 9 2 6 Roller Coaster Swaps 2 9 2 7 Range accrual Swaps 2 9 2 8 Delayed Amortizing Swap 2 9 2 9 Swaps with Moratorium 2 9 2 10 Swaps with Bermuda 2 9 2 11 Swap with Stub 2 9 2 12 Stub at start 2 9 2 13 Stub at end 2 9 3 Cross Currency Swap 36 9 3 1 Plain Vanilla 2 9 3 2 Basis Swap 2 9 3 3 Principal Only Swaps 2 9 3 4 Coupon only Swap 2 9 3 5 Principal Interest 2 9 3 6 Exchange at 8 9 3 6 1 Start 2 9 3 6 2 End 2 9 3 6 3 Both 2 9 3 6 4 Intermediary 2 Web based application for Forex operations Page 94 of 11 9 3 7 Amortizing swap 2 9 3 8 Accretion Swap 2 9 3 9 Roller Coaster Swaps 2 9 3 10 Delayed Amortizing Swap 2 9 3 11 Range accrual Swaps 2 9 3 12 Swaps with Moratorium 2 9 3 13 Swaps with Bermuda 6 9 3 13 Swap with Stub 2 1 9 3 13 Stub at start 2 2 9 3 13 Stub at end 2 3 9 4 Forward Rate Agreements 6 9 4 1 Pay Fixed 2 9 4 2 Pay Floating 2 9 4 3 Settlement at Start amp Settlement at End 2
20. PART IV Letter to be submitted by bidder along with bid 41 documents Annexure V 14 COMPLIANCE STATEMENT Annexure VII 42 15 FUNCTIONAL REQUIREMENTS ANNEXURE VIII 43 117 16 Commercial Bid ANNEXURE IX 118 17 Proforma for the Bank Guarantee for Earnest Money Deposit 119 120 ANNEXURE X 18 PROPOSED HARDWARE SPECIFICATION ANNEXURE XI 121 19 CHECK LIST Technical Bid ANNEXURE XII 122 Web based application for Forex operations Page 3 of 11 l GENERAL TENDER DETAIL SUPPLY OF WEB BASED APPLICATION FOR FOREX OPERATIONS Bidding Process 1 Date of commencement of 15 05 2015 Bidding Documents 2 Last date and time for sale of 11 06 2015 16 00hrs Clarifications 3 Last date and time for receipt of queries from vendors for 28 05 2015 17 00hrs 4 Pre Bid meeting 01 06 2015 11 00hrs Bidding Documents 5 Last date and time for sale of 11 06 2015 16 00hrs submission 6 Last date and time for Hash 11 06 2015 16 00hrs bid submission 7 Last date and time for online 12 06 2015 14 00hrs Bid Opening 8 Date and Time of Technical Please refer Tender Schedule 9 Place of opening of Bids Punjab National Bank Information Technology Division Head Office 5 SansadMarg New Delhi 1 10 Address for communication As above Tel 011 23311452 23718045 Fax 011 23321305 1
21. 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 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 7 Interest Rate Options Ca ps Flo ors Coll ars Knock out Caps Knock Floors 8 Ability to combine link different products into one transaction e g Currency swap with embedded currency options Web based application for Forex operations Page 93 of 11 9 RANGE OF DERIVATIVE PRODUCTS 96 INSTRUMENT TO BE COVERED 9 1 Currency Options 18 9 1 1 European Options 2 aA American Options 4 9 1 2 1 Exchange Futures 2 9 1 2 2 Currency futures 2 9 1 3 Plain Vanilla 2 9 1 4 Single Barrier Knock In Knock out American 2 European barrier monitoring 9 1 5 Double Barrier Knock In Knock out 2 American European barrier monitoring 9 1 6 Partial Window Barrier 2 9 1 7
22. Section 42 Annex B Annexure B of section 42 Banking Regulation Act 1949 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 Exposure Joint 2 Parliamentary Committee 2 17 Short sale report 2 2 18 DSB Monthly Quarterly 2 2 19 Risk Weight Asset 2 2 20 Statutory Reports 2 2 21 MTM Credit Exposure Report 2 2 22 Various market risk reports 2 Utilization Utilization of FCNR funds R Returns IBS Report 2 23 Cross Currency report to RBI 2 2 24 Option weekly report to RBI 2 2 25 Interest rate swap 2 Web based application for Forex operations Page 102 of 11 2 26 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 NO PO PO PO PO Report customization The system should be able to generate reports based on all available data 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 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
23. at different levels of security based upon their job role Describe your security framework How do you structure your security roles The proposed system should support database level security and or Application Role Based Authorization RBA Supports field level security Supports user level security Djo Supports module level security Describe the level of access we can assign to users The system should have the ability to customize the roles to any degree we desire For example modify Insert Update Read Only access to certain system resources Capability to define any number of roles and flexibility to modify these roles Ability to define security customer s system administrators Can security be delegated to certain end user groups 10 Describe how the passwords and security codes are maintained on the system 11 Capability to allow users to change Web based application for Forex operations Page 36 of 11 their own passwords to the application 12 The proposed application should provide complete logging and audit trails of activities performed by users 13 Standard security features like Password Management User Management Access control Encryption of data Time out and Audit Trails etc should be supported in the Software OWASP guidelines should be complied Vil Hardware and S
24. at the back of DD Power of attorney along with Board resolution in favour of authorized person signing the Bid documents Web based application for Forex operations Page 20 of 11 oO xiii Commitment certificate for service support duly signed by the Company Secretary xiv Letter of Undertaking from Principal Solution Provider is to submitted regarding providing adequate support for overseeing and assisting in completing the implementation as stated in point h under Clause 4 i e Other conditions Note a All pages of the bid documents must be signed by authorized person b All pages of the bid documents should be numbered in serial order i e 1 2 3 c Annexure VIII to be submitted in e procurement process only No hardcopy of the same be enclosed with the supporting documents ANNEXURE I TERMS AND CONDITIONS 1 ACCEPTANCE OF ORDER The bidder shall give acceptance within 7 days from the date of order However Bank has a right to cancel the order if the same is not accepted within the stipulated period from the date of the order 2 SIGNING OF CONTRACT The successful bidder s shall be required to enter into a Service Level Agreement SLA and Non Disclosure Agreement NDA with PNB within 30 days of the award of the tender or within such extended period as may be permitted by the bank on the basis of the Tender Document the Tender of the successful bidder the letter of acceptance and such ot
25. based on Notional Principal credit conversion factors 2 2 Offer real time view of counterparty limits 2 based on the current exposure method 2 3 View of trading limits by product type and by 2 trader on real time basis 2 4 Real time alerts and facility to 2 authorize limit violations 2 5 Ability to scan and attach paper based 2 notes duringauthorizations for future reference during audits and inspections 2 6 Exception management i e monitoring 2 flagging and reporting for limit violation 2 7 Rate scan provision 2 3 Market Risk Limits 8 3 1 VaR Limit 2 3 2 Sensitivity limits 2 3 3 Limits based on Greeks 2 3 4 Limit exceeded report 2 4 FX swap SPOT amp Outright valuation 2 MTM amp realized P amp L on a real time basis dealer wise and consolidated Breaches should generate trigger mails sms 5 Operational Risk Capital Computation 2 using The Standardized Approach TSA 6 The system should alow for the 6 measurement ofthe Counterparty credit risks for treasury 6 1 System should generate exception report 2 for limit violations 6 2 Facility to download and capture benchmarks 2 rates 6 3 Facility to download and capture currency 2 exchange rates 7 EXCEPTION REPORTING 10 7 1 Intra day exceptions to be monitored on 2 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 amp when such breaches occur 7 2 End o
26. compensation to a third party resulting from such infringement the supplier shall be fully responsible for including all expenses and court and legal fees 3 The Bank will give notice to the Supplier of any such claim without delay provide reasonable assistance to the Supplier in disposing of the claim and shall at no time admit to any liability for or express any intent to settle the claim 12 USE OF CONTRACT DOCUMENTS AND INFORMATION The bidder shall not without the banks prior written consent make use of any document or information provided by Supplier in Bid document or otherwise except for purposes of performing contract 13 ASSIGNMENT The bidder shall not assign in whole or in part its obligations to perform under the contract except with the Bank s prior written consent 14 LIQUIDATED DAMAGES If supplier fails to deliver any or all goods or perform services within stipulated time schedule the purchaser shall without prejudice to its other remedies under the rate contract deduct from the ordered price as liquidated damages a sum equivalent to 1 of the price for each week of delay until actual delivery of the goods or until the cancellation of order The purchaser has right to cancel the order in case delivery services not affected within stipulated time schedule The purchaser is entitled to withhold deduct from the purchase price or any other amount which is due to supplier from this contract or any other co
27. 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 28 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 amp Deal Pickup amp Bloomberg for Forex deals 15 4 2 CCIL s FX Clear FX Swap FX ALL Citi Fx Barx Autobahn JP Morgan IBS amp D2 360T ICAP EBS RMDS RTNS RTFX amp any other 15 4 3 SWIFT 15 4 4 FIMMDA for valuation as per the latest guidelines sector wise 15 4 5 Market Risk management SAS system 15 4 6 NSE MCX BSE Futures trading amp 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 7 Any other exchange platform 15 4 8 The system should support seamless transfer of data from Front Office to Back Office 15 4 9 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
28. 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 amp 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 8 Other Processing Requirements Web based application for Forex operations Page 70 of 11 The proposed solution should have provisions for adequately processing the following subject to market practice and regulatory guidelines Interest payments Valuations Amortizations The system should facilitate administration settlement accounting and revaluation of the following FX Instruments 9 1 Inter bank FX a Cash b Tom G 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 Do
29. during each year Audited Financial Statements of last 3 years should be submitted in this regard 2 5 The bidder should have shown positive net worth as per last audited balance sheet 2 6 All the mandatory fields in the functional requirements as per Annexure VIII should have been implemented and live in at least two Scheduled Bank 2 7 The bidder should not be involved in any litigation which threatens solvency of company and undertaking in this regard is to be submitted by bidder 2 8 The solution provider company should be CMMI Capability Maturity Model Integration level 3 complied In case the solution provider company is not CMMI 3 compliant then the solution to be provided should be accompanied by a certificate from the CMMI level 5 company confirming after evaluation audit that the solution provided is in conformity with CMMI 3 standards Web based application for Forex operations Page 9 of 11 2 9 Bidder should be the owner of the software solution offered or should have exclusive right of use deploy the software in India 2 10 The bidder has IP Intellectual property rights for the products offered to Punjab National Bank and an undertaking to this effect to be given 2 11 The solution provider should also comply with the Information Security standards as per ISO 27000 series as applicable for the implementation The documentary proofs for qualifying the prequalification criteria should be submitte
30. etc involved in the project and will be accountable for all the personnel deployed engaged in the project 4 3 The project implementation plan will be monitored regularly and delay in achieving milestones and deliverables will be analyzed and corrective action has to be taken Web based application for Forex operations Page 13 of 11 4 4 No right to employment in the Bank shall accrue or arise at any point of time under this project 4 5 In the event of exit of the Bidder from the project all the records confidential information and knowledge sharing as would be required by the bank shall be handed over to the bank in form as prescribed by the Bank at the time of exit For exit a prior six months notice is required to be given by the bidder 4 6 Bank also reserves the right to cancel the order contract with one month s notice to the bidder and invoke the BG as penalty in case implementation is not done as per agreed milestone 4 7 The Bank also reserves the right to inspect such installation s while evaluating the Technical Bid 4 8 At any stage of tender process if it is found that bidder has entered wrong detail for getting benefit or getting extra marks in Technical part then the Bank reserve the right to forfeit invoke the EMD Bank Guarantee submitted by that bidder 4 9 In case the bidder is not the Principal Solution Provider PSP the bidder should put in place adequate support structure from th
31. know Provide details of each tool Report Generation Design What native report writing or inquiry tools are included with your product What third party report writing tools do you support i e Crystal Brio etc Does the customer have to pay extra licensing fee for this Capability to configure sending the printing outputs fax Screen File e mail message Excel etc If any other report formats are supported describe other report formats Every data element in the system able to be reported sorted and queried on including those added by the customer Capability to format reports as Word Excel HTML or Acrobat Files Describe the process for a user to create a new report Are wizards available to guide the process Capability to process multiple reports Web based application for Forex operations Page 35 of 11 concurrently Search Capability Describe your search capabilities On what technology is the search engine built Does a third party develop it If so does the customer have to pay additional license fee for the same Capability to support various searching options viz Full text keyword wildcard user defined ranges query by SQL operators lt gt null not null etc multiple conditional queries etc Vi System Security Ability to configure different users employees trainers managers
32. made by invoking the BG as penalty Besides downloadable form the software should also be provided in CD DVD Hard Disk b Implementation Schedule The shortlisted bidder should implement all the listed functionalities of the solution in live environment within 15 days from the date of the UAT Sign off Penalty is also applicable in case of delay in live implementation of the software product 2 of the implementation cost will be deducted as penalty per week for delaying in implementation as per schedule with a maximum of up to 10 of implementation cost c Penalty for delay in Annual Technical Support Resolution of the problem is expected within 24 hours of escalation by the Bank as per the support matrix provided by the Bidder Delay in providing resolution will attract penalty at 2 of the ATS per week subject to a maximum of 20 of the ATS for the year The bank reserves the right to terminate the contract after giving 30 days notice in case the support is not satisfactory 9 UPGRADES AND UPDATES The bidder shall be required to provide all future updates and upgrades for the solution provided free of cost If however the upgrades is not available then the support for the implemented solution should be available at any point of time An undertaking to this effect is to be furnished by the Bidder 10 GOVERNING LAW AND DISPUTES All disputes or differences whatsoever arising between the parties thereof shall be s
33. of metal and exchange price FCY INR to be permitted and the modifications are to be recorded and stored so that it could be viewed at any point of time h Inter branch transfer of stock should be allowed 2 14 2 7 Currency futures amp Interest rate futures 12 a At the front office level file generated from NSE should 4 be uploaded in the system to maintain cumulative position and various reports like IC reports MTM Profit loss should be generated through it b Evaluated file from NSE should be inputted in system 4 to cross tally from the front end position The voucher for daily MTM should be generated through the system Web based application for Forex operations Page 80 of 11 C Passing of necessary vouchers by the system 2 d Daily MTM of Open positions and passing of necessary vouchers 14 2 8 STATEMENT amp MIS DESK 66 14 2 8 DAILY REPORTS 14 1 Name of INPUTS Subject Statement a GPB IC 4 IC 5 IC 6 Map 11 GAP Position 2 Map 8 Nostro Balance and Balance Including Sweep Gap Report Depo Var b FTD Daily Pos Data Back Daily 2 Office Statutory Turnover DATA Merchant and Interbank of Foreign Exchange C Daily 2 GAP CURR ENCY WISE d Structural Map 12 Stl Report Bucket wise 2 Liquidity Asset and Liability of Foreign Currency in Rs Lacs e Daily Net Over Night Open NOOP Day 2 exposure Position light Forward all open
34. other party within reasonable time period of the occurrence of a Force Majeure Event 17 INTELLECTUAL_PROPERTY RIGHTS The Bidder warrant that in the course of providing the services they shall not infringe upon any third party Patent Copyright Design Trademark or any other Intellectual Property Rights for system software and application software The Bidder shall indemnify and at all times keep the Bank fully indemnified and hold harmless against any and all loss damages costs and expenses including Attorney s fees which may be incurred as a result of any claim or action associated with such infringement PROVIDED HOWEVER the Bank agrees to give prompt notice to the Bidder of any such claim or action gives complete authority and freedom to the Bidder in defending and or settling such claim and gives all reasonable assistance to the Bidder in doing so The remedy available to the Bank under this clause will survive termination of the Purchase Order such that in the event of violation of IPR claim by any third party after the expiry of the contract between PNB and the Bidder the indemnity clause listed above will be valid and applicable beyond the contract period 18 DELAYS IN THE SUPPLIER S PERFORMANCE Delivery of the goods and performance of the Services shall be made by the supplier in accordance with the time schedule specified by bank Any delay in performing the obligation by the supplier will result in imposition of liquidated d
35. pilot run After successful run of application for 1 month on 60 aa pilot and Live sign off from Bank The definition of live implementation will be same as given in clause 3 of RFP After the warranty period or after bidder gives a 10 20 Bank Guaranty of equivalent amount valid up to warranty period The AMC ATS Cost after warranty period shall be paid at the end of each half year after the date of completion of warranty period subject to satisfactory services rendered till that date In case of delayed delivery or incomplete delivery the date of receipt of the complete and final component as per the SRS shall be treated as delivery date 9 TAXES The Unit Cost should be exclusive of all Taxes TDS as applicable will be deducted from the payments 10 DELIVERY IMPLEMENTATION SCHEDULE amp PENALTY CLAUSE Web based application for Forex operations Page 23 of 11 a Delivery The final Drafted SRS should be submitted by the bidder within one month of acceptance of order to the bank for vetting After getting SRS Sign Off from the bank the required software product will be delivered to the bank within 3 months Any delay in providing deliverables will attract penalty of 2 of product cost per week maximum of 15 of product cost for late delivery from agreed schedule If the delay exceeds 2 months then Bank reserves the right to cancel the order blacklist the company and recover any payment
36. 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 10 39 Facility to handle corporate actions cash and shares dividends split and reverse split merger spin off rights offering 12 BACK OFFICE ACTIVITIES TO BE SUPPORTED 32 12 1 System should support back office authorization Web based application for Forex operations Page 97 of 11 Web based application for Forex operations 12 2 Facility for reset rate entry for Swap and FRA 2 deals on reset date System should by default display the applicable benchmark rate with provision to change the same before saving the record 12 3 Facility to change the settlement currency for 2 FRA Currency Options and Swap deal settlements 12 4 Backdated processing including interest 2 accrual and settlement for backdated swaps 12 5 Facility to confirm a deal and print the 2 confirmation letter Ability to view the existing confirmed deals 12 6 Facility to transfer complete deal wise 2 portfolio position from one portfolio to another 12 7 Ability to modify swap parameters like reset 2 date compounding date and coupon date defined as part of deal entry 12 8 Facility to ch
37. provide for free text fields to enter manual text for communication purposes between front office and back office 22 3 The system should have the ability to create a table of standing instructions for settlements of foreign currency payments 22 4 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 23 PAYMENTS Ability to generate payment information The system should be able to automatically generate payment requests on or before the settlement date Web based application for Forex operations Page 87 of 11 The system should record the relevant approvals for payments for completed deals for foreign currency transactions The system should have the ability to generate letters to counter parties 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 52 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 b
38. should allow various mode of Web based application for Forex operations Page 60 of 11 oo position risk split across bucket 15 12 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 15 13 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 14 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 15 The system should support the conversion of a spot deal to a forward deal 15 16 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 17 System should support securities where final capital repayment follows preceding roll convention and interest payments follows following or m
39. should provide standalone screen for pricing of derivative deals with provision to convert the entered parameters to a deal 10 14 Matching Un matching of back to back Derivative Trades System should support both full and partial matching of two or more deals 10 15 Facility to Terminate Derivative Deals System should compute MTM with a facility to change the system computed MTM amount 10 16 Monitoring screen to monitor Barrier Currency Option Deals for Knock In and Knock Out events 10 17 Currency Option deals eligible for exercise or lapse should appear automatically on the screen along with important deal information 10 18 Facility to create structured product encompassing various Currency Option Principal Swap IRS and Forward Rate Agreement deals 10 19 There should be parametric facility for Front Office authorization 10 20 Computation of interest rate risk like PVBP for Swaps and FRA 10 21 Computation of Delta Gamma Theta amp Rho for Currency Options 10 22 Facility to designate any of the above derivative in to hedge or trading 10 23 Facility for front office user to manually define the underlying This should be through a field over and above the Remarks field 10 24 Generation of deal slip and confirmation letter 10 25 Deal slip should contain information of the underlying asset 10 26 Facility to suppo
40. should support draw down and partial draw down on loans or deposits with proper handling of the accruals with Interest Resetting clause 15 26 System should support the conversion of P amp L accumulated in non INR currency to INR and transfer the arising FX position for covering in the interbank market 15 27 System should support roll over of positions daily and allows specification of the applicable roll over rate 15 28 System must be capable of giving the average YTM on assets and liabilities on the banking book 15 29 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 30 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 Web based application for Forex operations Page 62 of 11 legs of the same swap 15 31 System should support the transfer of FX position to the MM desk for funding 15 32 System must support drill down of position to deal level 15 33 System must support easy to use functionality to split cross positions and transfer positions between portfolios 15 34 System must have real time analytical tool which facilitate the dealer of complex position 15 35 Syst
41. 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 amp holding periods 11 2 Historical Simulation 11 3 Variance covariance N 11 4 Distribution of VaR across the following Dealer wise VaR Products wise VaR Market wise VaR Calculation of contribution of every dealer product and market towards the overall VaR numbers The system should be able to do rate scan of market rates on a real time basis The system should do valuation of forex portfolio on daily basis The system should provide NOOP AGL computation as per bank requirements Duration Related Measures Report on bucket wise as per STL investments assets with weighted average Duration M duration of such Web based application for Forex operations Page 66 of 11 securities assets for each buckets and consolidated portfolio as a whole 11 10 Fx Limit Overnight IGL AGL 2 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 TOTAL 106 Back Office Requirements Sr No Business Process Max S C Comm Marks ents 1 DEAL VERIFICATION 14 1
42. 1 Cost of RFP Rs 10000 Non refundable should be submitted online only in favour of Punjab National Bank on or before last date of bid submission in the following account IFSC Code PUNB0015300 Bank amp Branch Punjab National Bank Sansad Marg New Delhi 110001 Account No 01530022001 75673 16 digits Imprest account HO IT Division 12 Earnest Money Deposit EMD 13 Contact to Bidders Rs 10 00 000 Rs Ten Lacs Only should be submitted online on or before last date and time of bid submission or in the form of Bank Guarantee as per specified Performa Annexure XIV in favour of Punjab National Bank IT Division at New Delhi BG should be valid for a period of 6 Months from the date of submission of bid IFSC Code PUNB0015300 Bank amp Branch Punjab National Bank Sansad Marg New Delhi 110001 Account No 0153002100567220 16 digits Imprest account HO IT Division In case of unsuccessful bidder EMD will be returned after completion of the bid process and no interest will be payable of EMD amount Interested Bidders are requested to send the e mail to itdhw pnb co in mkm pnb co in and Web based application for Forex operations Page 4 of 11 sateesh pnb co in lalaswani pnb co in navisvictoria pnb co in for clarification containing following information so that in case of any clarification same may be conveyed to them Name of company
43. 1 Ability to provide configurable deal verification function 2 by status amp authority 1 2 Ability to provide deal verification facility by exception 2 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 2 multiple verification levels 1 4 Ability to configure transaction data fields that can be 2 amended during deal verification stage 1 5 Ability to amend or cancel a deal e g incomplete 2 deals at deal verification stage by authorized personnel along with maintaining of relevant audit trail 1 6 Ability to append standard settlement instructions 2 SSIs to deals 1 7 Ability to generate Exception Report 2 2 DEAL CONFIRMATION 18 2 1 Ability to generate and manage confirmations 2 including interfaces for all products 2 2 Ability to define the format and wordings of 2 confirmation based on the characteristic of the product transaction 2 3 Ability to format and maintain different formats for 2 confirmation by Product instrument payment type counter party and currency etc 2 4 Ability to generate automatic confirmation letters for all 2 transactions on contract date and also for NON CCIL trades separately 2 5 Ability to support automatic through upload sending of 2 confirmations through structured messages by electronic media such as SWIFT Applicable MT series e mails an
44. 11 24 Internal Transfer Deal slip 2 11 25 Merchant Forward Contract Booking Slip 2 11 26 Inter Bank Swap Deal Slip 2 11 27 Dealers Pad 2 Web based application for Forex operations Page 106 of 11 11 28 Currency wise position balances 2 11 29 Funds Flow Currency wise 2 11 30 Deal Register 2 11 31 Termination Register 2 11 32 Settlement Register 2 11 33 Portfolio Transfer Register 2 11 34 Match Register 2 11 35 Event letter 2 11 36 MTM Report 2 11 37 Outstanding Register 2 11 38 Swap Schedule Register 2 11 39 Interest Accrual 2 11 40 Reset Advice 2 11 41 Mark to market 2 12 Payment Gate wise FCTM Advice Summary 13 12 1 Account Ledger Interbank maturity register with 2 payment mode Cash Settlement INR cross currency 12 2 Interbank Maturity Report 2 12 3 Overdue Interest Age wise 2 12 4 Overdue Merchant Contract 2 12 5 Overdue Export Bills Due for Delinking 2 12 6 Overdue Foreign Currency Loans 2 12 7 Profit and Loss statements 2 12 8 Realized Profit and loss 2 12 9 Volume and turnover status reports 2 12 10 Cash flow statements Daily 2 Weekly Monthly Quarterly From date to date 12 11 Broker Exposure Transaction wise 2 12 12 Brokerage paid during a Period Broker wise 2 12 13 Broker wise reports stating the of business 2 done 12 14 FEDAI Revaluation Daily Monthly
45. 110001 Dear Sir In accordance with your bid reference no Dated M s having its registered office at herein after Called bidder wish to participate in the said bid for Software Solution For web based application for forex operations at Punjab National Bank Information Technology Division 5 Sansad Marg New Delhi 110001 having its Head Office at 7 Bhikhaiji Cama Place New Delhi 110066 An irrevocable Financial Bank Guarantee issued by a nationalized scheduled commercial Bank against Earnest Money Deposit amounting to Rs Rupees in words valid up to is required to be submitted by the bidder as a condition for participation in the said bid which amount is liable to be forfeited on happening of any contingencies mentioned in the bid document M s having its registered office at has undertaken in pursuance of their offer to Punjab National bank hereinafter called as the beneficiary dated has expressed its intention to participate in the said bid and in terms thereof has approached us and requested us Name of Bank Address of Bank to issue an irrevocable financial Bank Guarantee against Earnest Money Deposit EMD amounting to Rs l Rupees in words valid up to We the Name of Bank Address of Bank having our Head office at therefore Guarantee and undertake to pay immediately on first written demand by Punjab National Bank the amount Rs Rupees in words without any reservation protest demur and recourse in cas
46. 6 Archiving of reports 2 6 1 The system should archive historical rates 2 extracted from market information systems and should also allow for archiving of historical reports 7 Integration with Enterprise 4 Reporting Solutions Tools 7 1 System must provide tools for reconciliation 4 of data imported exported from external systems 8 The system should have easy report writing 8 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 1 Facility to download data from Integrated 4 Treasury Package to Excel Form 8 2 Soft copy of the reports should be generated in 4 xls doc pdf csv formats 10 Ledger Reports 90 10 1 Accounts Ledger 2 10 2 Security Ledger 2 10 3 Subsidiary General Ledger SGL 2 10 4 Interest Ledger 2 10 5 Dividend Ledger 2 10 6 TERM MONEY LEDGER 2 10 7 Purchase Register 2 10 8 SALE REGISTER Short Sale security wise 2 10 9 FCNR resources register 2 10 10 RFCTD Resources register 2 Page 104 of 11 10 11 Merchant forward contract register 2 10 12 Contract Register 2 10 13 Forward suspense register 2 10 14 Suspense cancellation register 2 10 15 Suspense reversal register 2 10 16 Suspense early delivery register 2 10 17 Outstanding suspen
47. 8 Ability to generate due date diary for interest amp redemption with adequate filters 3 9 Ability to alow part settlement of interest Redemption 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 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 N 3 13 Ability to generate RTGS messages wherever Applicable 3 14 Ability to send amended messages automatically to CCIL CLS in case of any amendment made to the original deal Matching and Transaction Reconciliation 10 Web based application for Forex operations Page 68 of 11 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 force matching for reconciliation 4 4 Ability to support manual reconciliation for unreconciled entries 4 5 Ability to provide for aging of unreconciled deals NOSTRO Management 5 1 Ability to support management of multiple Nostro accounts by currency 5 2 Ability to transfer funds be
48. AL PLATFORM REQUIREMENT FOR DEPLOYMENT OF THE PROPOSED Web Based Application for Forex Operations Solution 1 SYSTEM REQUIREMENTS S No Item description configurations make model Quantity 1 Operating system 2 Database system 3 Others please specify 2 HARDWARE amp STORAGE DETAILS S No Item description configurations make model Quantity 1 2 3 4 Date Place Signature of Authorized Signatory Name of Signatory Designation Seal of Company Web based application for Forex operations Page 117 of 11 CHECK LIST Technical Bid ANNEXURE XII S Documents Submitted in Bid NO Online Physical Bid Bid 1 Supporting documents in respect of Pre qualification criteria as per Annexure II Bidder s information as per part I of Annexure lll Product Information as per part Il of Annexure IV Technical features and Technology Architecture as per part Ill of Annexure V Acceptance of Compliance Statement Annexure VII Functional Requirement as per Annexure VIII Components required for system Software Hardware DBMS Network Bandwidth Software Utilities Middleware etc including Licenses ATS and AMC wherever required Any other document indicating the feature of the product Proposed Hardware Specification as per Annexure XI 10 Bid Earnest Money i
49. Bank amp Merchant gt Notional Principal Positive MTM PFE Negative MTM Notional principal amp Credit Equivalent of Forward Turnover during the month and Outstanding at the end of the month Trading Book Banking Book Counter party Rating 14 2 8 QUARTERLY REPORTS Web based application for Forex operations Page 84 of 11 liabilities a Transfer of Unreconciled 2 Outstanding Nostro Nostro Entries for 3 Credit Years and Entries to Above Distinct Blocked Account b Housekeepi Nostro Vostro 2 ng C Country Country Wise Bank 2 Exposure Wise Fund Risk Based Nostro amp INVM and Non Fund Based O S Inter Bank Deals d Sundry 2 Suspence e Country Risk 2 15 MARK TO MARKET AND REVALUATION 22 15 1 Capability to mark to market all positions and 2 calculate the profit amp loss 15 2 All forward contracts to be revalued on PV basis 2 15 3 Arithmetic interpolation to be applied while revaluating 2 the forward contracts 15 4 System should support Revaluation of Forward 2 Position at user defined frequency and show accounting entries in simulated environment before generating the accounting entries on user acceptance 15 5 System should support Revaluation of Nostro 2 Balances at user defined frequency at FEDAI and show accounting entries in simulated environment before generating the accounting entries on user
50. Bank will not evaluate any deviation mentioned elsewhere in the bid except as mentioned hereunder Terms and Conditions We hereby undertake and agree to abide by all the terms and conditions stipulated by the Bank in this RFP including all addendum corrigendum etc Any deviation may result in disqualification of bids Technical Specification We certify that the systems services offered by us for tender confirms to the specifications stipulated by you with the following deviations List of deviations If left blank it will be construed that there is no deviation from the specifications given in the Tender document Date Place Signature of Authorized Signatory Name of Signatory Designation Seal of Company Web based application for Forex operations Page 40 of 11 ANNEXURE VIII FUNCTIONAL REQUIREMENTS The bidder should mention in the column under Bidders Response whether modules for all the required features specifications as mentioned above are S Standard feature C Customizable free of cost in the current version itself before acceptance of the Software by the Bank 70 of all the fields and subfields present here as under should be present in the initial Vanilla product and other 30 fields and subfields may be customized Bidder has to provide all the fields in the final solution Bidder has to provide timeline to complete all the fields marked as C by them and should not exceed 2
51. C Dynamic Short Term Dynamic Short Term 2 Liquidity Re Liquidity Report Dynamic porting Liquidity Esti Friday mated d R Return R Return 2 14 2 8 MONTHLY REPORTS 30 4 a Statement of Nostro Balance O S Nostro Vostro 2 Nostro Vostr Currency wise Balance o A Cs b MAP Maturit IB deals Asset Liability Bucket wise 2 Web based application for Forex operations Page 82 of 11 y and MAP 11 Assets Position Las Liability t Working Mismatch in Day GPB USD EU RO and JPY Balance Sheet and Off Balance Sheet Gap C Nostro Unreconciled entries Summerised 2 Reconciliatio O s month wise Year Position of n wise Unreconciled Entries in Nostro A Cs d Unclaimed Unreconciled entries for Unclaimed 2 Deposit and more than 6 months Deposit and Unreconcile and inoperative entries Unreconciled d O S of O s month wise O S of more more than 6 yearwise than 6 months months e Profit Turnov Turnover of Merchant Profit Exchan 2 er Deals Cash ge Profit Statement TOM Spot Forward Trading The system should Profit and enable segregation of Turnover Mer profit dealer wise and chant Interba deal wise trading nk merchant amp Arbitrage f Overseas Tier capital of previous Overseas 2 Foreign quarter is converted into Foreign Curreny USD by applying RBI Curreny Borrowing reference rate of the Borrowing last day of the previous quarter LOC ra
52. CBS Finacle 15 4 10 After authorisation of IMT OMT and other merchant deals at back office the system should be integrated with CBS Finacle so that the intersol accounts of the respective branches gets the credit debit 15 4 11 Settlement messages should be encrypted before interface with other Web based application for Forex operations Page 46 of 11 networks 15 5 SWIFT as an interface with the Integrated Treasury Management System Should support the following 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 amp omissions 15 5 2 System should automatically generate SWIFT confirmation slips amp 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 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
53. NSITIVITY REPORT Bucket wise 2 Curve wise PV01 distribution as on date 14 3 GAP REPORT Interest Rate Gap Report 2 Currency wise bucket wise 14 4 TOTAL OPTIONS TRADING P L 2 14 5 RISK SENSITIVITY REPORT Option 2 Greeks Tenor wise Distribution of Greeks Simulation VaR Page 111 of 11 14 6 Swaps Sales Activity Report 2 14 7 CREDIT UTILISATION REPORT 2 14 8 Total SWAPS SALES P amp L REPORT 2 14 9 Total PRODUCT WISE SALES P amp L REPORT 2 14 10 REPORT OF TOP CLIENTS 2 14 11 Total PRODUCT WISE SALES P L 2 14 12 Total HEDGE REPORT 2 14 13 Options Sales Activity Report 2 14 14 CREDIT UTILISATION REPORT 2 14 15 Total OPTIONS SALES P amp L REPORT 2 14 16 Total PRODUCT WISE SALES P amp L REPORT 2 14 17 REPORT OF TOP CLIENTS 2 14 18 Total OPTIONS SALES P L 2 14 19 Total PRODUCT WISE SALES P L 2 14 20 Total CLIENT REPORT 2 14 21 Top 10 Swap Clients 2 14 22 OPTION MATURITY REPORT 2 14 23 Hedge Efficiency Effectiveness Report in 2 respect of all types of Derivative instruments used for Hedging purpose 14 24 Activity Forecast Register along with 2 ability to compute coupon amount if the rates have been reset for the floating leg 14 25 Deals Slips 2 14 26 Deals Confirmations 2 14 27 Interest Rate Reset Notice 2 14 28 Settlement Notice 2 14 29 Barrier Trigger Notice 2 14 30 Shifting of securities as per RBI
54. OF ERASURES OVERWRITING ETC Any inter lineation erasures or overwriting shall be valid only if the person s signing the bid initial s them 9 AMENDMENT OF BIDDING DOCUMENTS At any time prior to the last Date and Time for submission of bids the Bank may for any reason modify the Bidding Documents through amendments at the sole discretion of the Bank All amendments shall be uploaded on the Bank s websites www pnbindia in and https pnbindia biz and will be binding on all who are interested in bidding In order to provide prospective Bidders a reasonable time to take the amendment if any into account in preparing their bid the Bank may at its discretion extend the deadline for submission of bids 10 CONTACTING PNB OR PUTTING OUTSIDE INFLUENCE Bidders are forbidden to contact PNB or its Consultants on any matter relating to this bid from the time of submission of commercial bid to the time the contract is awarded Any effort on the part of the bidder to influence bid evaluation process or contract award decision may result in the rejection of the bid Bank s decision will be final and without prejudice and will be binding on all parties 11 BANK S RIGHT TO ACCEPT OR REJECT ANY BID OR ALL BIDS The purchaser reserves the right to accept or reject any bid and annul the bidding process or even reject all bids at any time prior to award of contract without thereby incurring any liability to the affected bidder or bidders o
55. PCFC Branchwise Currencywise Report of Overdue PCFC Branchwise Currencywise d Report of all PCFC going to be due in next 30 months in the form of a letter to be sent to Branches e FOBD Post Shipment Credit Purchase or Opening 2 Realization Closure Part as well as full Extension of due date and delinking f Report of all FOBD bills Branchwise Currencywise g Report of Overdue FOBD bills Branchwise Currencywise h Report in the form of a letter to be sent to Branches of 2 all FOBD bills going to become due in next 30 months i EBR Post Shipment Credit Purchase or Opening 2 Realisation Closure Part as well as full Extension of due date and delinking j Report of all EBR bills Branchwise Currency wise k Report of Overdue EBR bills Branchwise Currency wise l Report in the form of a letter to be sent to Branches of 2 all EBR bills going to become due in next 30 months m FCL Foreign Currency Loan amp FCTL Foreign 2 Currency Term Loan Opening Export and Import purpose Modification Closure Delinking closing using Merchant forwards n Report of all FCL FCTL Branchwise Currency wise O Report of Overdue FCL FCTL Branchwise Currencywise p Report of all FCL FCTL going to due in next 30 2 months in the form of a letter to be sent to Branches q DLFCNR Demand Loan against FCNR 2 Opening Export and Import purpose Modification Closure Delinking Web based application for Forex operations
56. Page 7 of 11 The Software was purchased from M s Saksoft and was implemented in 2003 The system is catering to accounting and settlement of all FOREX Operations EBT system is interfaced with RETAD and KONDOR for smooth deal flow from front office and for further processing at the back office Proposed System The proposed solution needs to a web based solution taking care of FOREX operations of the bank The proposed solution needs to be interfaced with RET AD which is the Merchant transaction reporting system for branches However the system should be flexible enough to handle merchant transaction reporting functionality Bank may use this feature in future replacing RET AD The proposed FOREX software solution is required to be end to end which means the solution should handle the front office amp back office operations of FOREX transactions to be used in Treasury department using preferably the latest version of application database and its tool The solution shall take care of the Front office and Back Office operations of FOREX transactions The purpose behind this document is to get proposal to identify the vendor for meeting all the functional requirements of treasury operations with the ability to perform day to day FOREX operations and to have interface with CBS RET AD KPLUS and other external systems through Straight Through Processing STP without manual intervention Further Forex system should be designed with r
57. Quarterly 2 12 15 Interbank deal register 2 12 16 Repo deal register 2 12 17 Repo deals due date diary 2 12 18 Unconfirmed forex fwd Contracts 2 12 19 Dealers pad 2 12 20 IB Foreign currency contract confirmation 2 12 21 R Returns 2 12 22 R returns currency wise details 2 12 23 Nostro 2 balances Consolidated Nostro Ledger Statement of Matched Entries on particular day Web based application for Forex operations Page 107 of 11 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 12 24 Age wise nostro entries 2 12 25 Check list for nostro statements 2 12 26 Age wise analysis of un reconciled entries from 2 Date To Date 12 27 Reconciliation of o s nostro entries as on Date 2 12 28 Inward Remittances Report 2 12 29 Outward Remittances Report 2 12 30 FCNR resources register 2 12 31 FCL resources register 2 12 32 RFCTD Resources register 2 12 33 Outstanding FCNR as on a particular date 2 12 34 Outstanding RFC TD as on particular date 2 12 35 Outstanding FCL 2 12 36 Overdue FCNR 2 12 37 EEFC DRFC DDA ledger 2 branch customer currency wise 12 38 RFC ledger branch wise customer 2 wise currency wise 12 39 Provision for interest a
58. S C Comments Concurrent Use The system should be able to support simultaneous use of the system by multiple users Scalability 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 Whenever a password for a user login is reset by the application administrator the user should be intimated via his corporate e mail id through auto generation of email Data Storage and Archiving 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 Web based application for Forex operations Page 99 of 11 should be supported by the system Documentation The system should be able to provide intuitive and current online documentation File import and export
59. The system should have the ability to print all transaction deal tickets N 18 2 Re printing of transaction deal tickets 18 3 printing of all MIS reports 19 COUNTER PARTY CONFIRMATIONS 19 1 The system should have the ability to accept confirmations from counterparties in electronic format NO 00 PO N The system should be able to reconcile the electronic confirmations received from counter parties for foreign currency denominated transactions The system should provide for recording of confirmations received in physical mode from 19 3 1 Counter parties 19 3 2 Custodians 20 UNCONFIRMED DEALS 20 1 Segreggate and send back to the dealer a particular deal that has not been confirmed for any reason NO amp PO PO 20 2 Report deals that are not confirmed N 21 AUDIT TRAILS gt 21 1 The system should have the ability to record all modifications and deletions at the trade level 21 2 The system should provide logs for all audit trails to the system administrator in case of Entry Modification Deletion Confirmation amp Settlement of Deals Change of Password Change of Parameter Change of User Definition with user details date amp time 22 DEAL SETTLEMENT 22 1 The system should have the ability to create a queue for a definable series for payment release for Securities Transactions 22 2 The system should
60. Tool wizard 3 28 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 3 29 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 3 30 The bidder should study the requirements of the bank including customization and provide a Systems Requirement Study SRS report to the bank 3 31 The bidder should either provide the source code itself with necessary documentation or arrange to keep it under escrow arrangement 3 32 The bidder will be required to implement all three environments for the solution i e Production DR Development Test Web based application for Forex operations Page 12 of 11 3 33 The primary site will be at Mumbai with its production servers to be placed at DRS Belapur Navi Mumbai The Disaster Recovery site should be established at Data Centre HO ITD New Delhi 3 34 Duties of onsite engineer includes configuration changes version upgradations 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 i
61. a should be stored by the system for at least 10 years NO BPO POP PO DO PO Users should be able to recall data without any coding requirements N 26 MARKET DATA ANALYTICS O The system should allow users manually define yield curves N The system should be able to model user defined treasury curves The system should be able to provide trend analysis for market prices of securities 27 COMPUTATIONS AND CALCULATIONS refer to the calculators section above The system should be able to track the strike dates in case of products with embedded call put options The system should be able to calculate interest for products sensitive to caps and floors 27 3 The system should be able to compute brokerage by any of the following methods as part of deal entry 27 3 1 Flat brokerage with slabs linked to notional amount deal type cash spot forward 27 3 2 Percentage rate 27 3 3 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 29 DEAL CAPTURE 24 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 29 2 System should be able to record a reverse trade f
62. acceptance 15 6 The system should be able to accommodate parallel 2 shift nonparallel shift in spot Fx forward rates for stress testing 15 7 System should support AS 11 accounting and should 2 generate the accounting entries as per the bank s policy 15 8 The system should enable segregation of profits 2 dealer wise and deal wise trading merchant amp arbitrage and also to report cost of carrying money market swaps arbitrage swaps taking user input rate for cost of funds 15 9 System should generate MTM advice and send the 2 same directly to Merchant via Email 15 10 FCNR Portfolio Banks FC assets and 2 Web based application for Forex operations Page 85 of 11 revaluation as per AS 11 The assets liabilities pertaining to FCNR to be identified separately from exchange transactions Web based application for Forex operations 15 11 The system should be able to do Stress test on daily 2 weekly monthly yearly basis for trading book including AFS 16 RECORDS The system should be able to maintain at 36 least the following records amp generate reports accordingly 16 1 Open positions Intra day amp overnight 2 16 2 Currency pair wise Position Book 2 16 3 Accounting Entries 2 16 4 Funds Flow 2 16 5 Gap Statement 2 16 6 Nostro Ledger 2 16 7 Deal Register 2 16 8 Due Date Diary 2
63. amages and or termination of rate contract for default 19 TERMINATION OF CONTRACT The quality of services given by the bidder will be reviewed every 3 months and if the services are not found satisfactory the bank reserves the right to terminate the contract by giving 30 days notice to the bidder The decision of the bank regarding quality of services shall be final and binding on the bidder 20 Integrity Pact The successful bidder should under take the Integrity Pact as per the proforma provided by the bank to the successful bidder as per CVC guidelines Web based application for Forex operations Page 26 of 11 Date Place Signature of Authorized Signatory Name of Signatory Designation Seal of Company ANNEXURE lI Response of Eligibility Criteria Details of S No Eligibility Criteria Yes No Documents Submitted ie The bidder company should be registered in INDIA as per the companies act or have its registered office within the jurisdiction of INDIA The bidders Support centre should be located at Mumbai In case bidder is not having support centre at Mumbai bidder should give undertaking to open the support centre in Mumbai within 1 month of award of tender The bidder should be engaged in providing implementi such software solution in India for last 3 years The turnover of bidder parent company of the bidder of bidding company for the last three financial years must be not
64. and all correspondence and document relating to the bids exchanged by the bidder and PNB shall be written in English 24 OPENING OF BIDS All the bids will be opened at the date time and locations mentioned in RFP as per tender schedule The technical bids will be opened in the presence of representatives of the bidders who choose to attend The bidders names modifications bid withdrawal and the presence or absence of requisite Bid Security and such other details as PNB at their discretion may consider appropriate will be announced at the bid opening 25 PRELIMINARY EXAMINATION The Bank will examine the bids to determine whether documentations are complete whether any computational errors have been made whether required information has been provided as underlined in the bid document whether the documents have been properly signed and whether bids are generally in order The bid determined as not in order as per the specifications will be rejected by the Bank 26 BIDDING PROCESS TWO STAGES For the purpose of the present job a two stage bidding process will be followed The response to the present tender will be submitted in two parts e Technical bid Stage l e Commercial bid Stage ll The bidders will have to submit the technical bid in banks e procurement system as well as in hard copy and commercial bids in only online form through bank s e procurement system Web based application for Forex operations Pa
65. ange settlement instructions 2 12 9 System should support Forward Revaluation 2 12 10 Facility to amortize the MTM in case of 2 termination of deal in Hedging portfolio 12 11 Facility to view deal wise MTM across 2 products with facility to view selected deals or portfolios 12 12 Facility to view overall MTM across dealers 2 selected dealers by super users 12 13 MTM Trend analysis for any product deal 2 intraday as well as across dates 12 14 System should have capabilities to 2 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 2 margins maintenance form a Government securities b Cash c Other forms 12 16 System should be able to link to the 2 Page 98 of 11 respective exchange platform systems MCX SX NSE BSE USE Others 13 SWIFT CAPABILITIES 13 1 Generation of SWIFT confirmation messages for derivative deals 16 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 MO RRR Total Marks 260 Technical Requirements Sr No Business Process Max Marks
66. any portion of its responsibilities or obligations under the Contract to another person it shall cause its assignee or delegate to be bound to retain the confidentiality of the Confidential Information in the same manner as the Vendor is bound to maintain the confidentiality This Clause will remain valid even after the termination or expiry of this agreement That the Successful Bidder will strictly maintain the secrecy of Bank s data 36 CONTENT OF DOCUMENTS TO BE SUBMITTED Documents required in Technical Bid Envelope Sealed Cover i ii iii iv v vi vii viii xi xii Supporting documents in respect of Pre qualification criteria Annexure A Bidder s information as per part I of Annexure lll Product Information as per part II of Annexure IV Technical Features amp Architecture of the System as per part III of Annexure V Acceptance of Compliance Statement Annexure VII Functional Requirement as per Annexure VIII Components required for system Software Hardware DBMS Network Bandwidth Software Utilities Middleware etc including Licenses AMC and ATS wherever required Any other document indicating the feature of the product Proposed Hardware Specification for the solution as per the Annexure XI Copy of last three years audited balanced sheet Bid Earnest Money in the form of Demand Draft BG as per Annexure X Please mention the tender name with year and company name
67. ation should be encryption aware The security features of the proposed application should SSL aware Provide broad hardware sizing guideline for the different tiers in the architecture How does the exchange of packets happen between the different tiers of the application architecture ls it through clear text or is it encrypted We confirm that all the details mentioned above are true and correct and if the Bank observes any misrepresentation of facts on any matter at any stage of evaluation the Bank has the right to reject the proposal and disqualify us from the process We hereby acknowledge and unconditionally accept that the Bank can at its absolute discretion apply whatever criteria it deems appropriate not just limiting to those criteria set out in the RFP document in short listing of bidders for providing software solution We also acknowledge the information that this bid is valid for a period of one year for the short listing purpose from the date of expiry of the last date for submission of bid Date Place Web based application for Forex operations Signature of Authorized Signatory Name of Signatory Designation Seal of Company Page 38 of 11 ANNEXURE VI The Chief General Manager IT Procurement Department Information Technology Division Punjab National Bank Head Office 5 Sansad Marg New Delhi 110 001 Sir Reg Our bid for supply and
68. ber Branch Name POPPED PO PO 16 10 7 In case of reconciled entry by whom it was reconciled N 16 10 8 field 86 of the swift message 16 11 Absorption of small outstanding into P amp L by user input and relevant report should be generated NIN 16 12 Weekly outstanding list to be generated for follow up and for Submission to Higher Authorities 16 13 Provision to view nostro records by various parameters like date value date name nostro bank amount reference no etc Also it should allow wild card search 16 14 Provision for generation of balancing report for currency and Nostro containing outstanding debits credits from mirror and nostro records at periodic intervals 16 15 Exception report should be available for unidentified and outstanding debit entries in nostro and mirror at user defined interval 16 16 The system should automatically pop up if there is difference after Capture in the the credit and Debit balances of any Nostro accounts 16 17 The system should generate a report of all the Nostro Balances after Capture of MT 940 MT950 in to the system 16 18 The system should automatically match reconcile entries in CCIL and CLS accounts 16 19 Reconciliation statement current date or as on of any back date 17 INTEGRATION 17 1 Integration with other systems should be facilitated by the following modes 17 2
69. ble 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 be able to restrict the user from inputting past trade dated entries for investments 10 5 The system should be able to provide an audit trail for all transactions entered from trade date onwards amp for exceptions 10 6 10 7 The system should be able to accommodate the entry of forward value date transactions Deal numbering The unique trade identification number should be printed in Web based application for Forex operations Page 54 of 11 the deal slip along with the other deal details Deal tickets 28 Automatic generation view print and review of deal tickets Provide unique deal numbers for each deal ticket Generate multiple deal tickets for each transaction Print separate deal tickets for internal and external purposes Ability to route deal flow based on Deal Ids The system should preserve historical data of all deals Generate a report of all cancelled modified deleted deals Provide interface with existing Dealing Systems 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 11 10 The system should ha
70. ccrued FCNR 2 12 40 Provision for interest accrued RFC TD 2 12 41 All related reports for FCNR RFC deposits 2 controlled under old as well as new accounting system 12 42 Revaluation of FCNR RFC should be 2 calculated by the system and entries should also be passed by the system 12 43 Department wise sundry as well as POB 2 head to be maintained 12 44 Outstanding merchant forward contracts 2 12 45 Merchant Forward Contracts utilized 2 between 2 dates 12 46 Merchant Forward unconfirmed deals 2 12 47 Contract cancellation debit credit advice and 2 entries of loss gain there on as per RBI norms Web based application for Forex operations Page 108 of 11 oo 12 48 Mer Cont early delivery and recovery of 2 swap Charges interest on outlay 12 49 Contracts due for delivery of documents 2 12 50 Merchant forward contracts due within spot date 2 12 51 Merchant forward contract register between 2 2 dates 12 52 Contracts due for auto cancellation 2 12 53 Merchant forward contract summary 2 12 54 Merchant contracts overdue 2 12 55 Contracts cancelled 2 12 56 Contract Register 2 12 57 Transaction log 2 12 58 Forward suspense register 2 12 59 Suspense cancellation register 2 12 60 Suspense reversal register 2 12 61 Suspense early delivery register 2 12 62 List of transactions maturing between two dates 2 12 63 Ou
71. ched 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 Commodities 2 1 Module for controlling and accounting of commodities like Gold Silver etc TOTAL Derivatives Requirements Sr No Business Process Max Marks S C Comments 1 including limit margin maintenance and call facility Exchange Traded Currency futures amp options N Exchange Traded Interest Rate Future Currency Swaps Cross Currency Swaps Fixed amp Floating Coupon Swaps Fixed amp Floating Principal Swaps Fixed amp Floating Range Accrual swaps Swaps amp Forward Rate Agreement With amortization accreting schedules Swaps with different tenor benchmark setting amp cash flows Basis Swaps In Advance In Arrears Constant maturity swap Caps and Floors Othe exotic swaps Currency Options Web based application for Forex operations Page 92 of 11 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 amp
72. classes 1 8 Ability to amend or cancel a deal e g 2 incomplete deals at deal verification stage by authorized personnel along with maintaining of relevant audit trail 1 9 Ability to Support Algorithmic Trading 2 2 Deal Analysis 16 2 1 Ability to offer multiple scenarios for 2 analysis across different books 2 2 Calculation of cost of carry and cost to 2 close 2 3 Real time view of economic P amp L 2 2 4 Port folio level desk level dealer level 2 P amp L analytics with drill down functionality 2 5 View volatility for all products containing 2 optionality Web based application for Forex operations Page 50 of 11 2 6 Real time view of PV0O1 and Greeks N 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
73. coded Data base supported System Module components Specifically indicate modules components and their dependencies whether the modules components can be implemented independent of other modules components and level of integration for each proposed module component Description of the solution development environment and application tools used Also furnish whether Third Party Tools or Tools available with the System Software RDBMS that are used in designing the solution Is any third party product included in the solution Whether the company has full control over the source code of such bundled third party software What is the purchasing licensing policy for the solution Broad solution enhancement integration strategy for the next 3 5 years 10 Whether the solution offered is single product and Web based application for Forex operations Page 31 of 11 all the modules are integrated through a menu 11 Whether the solution is web enabled with security features and different User level access controls 12 Indicate the minimum hardware configuration and bandwidth requirement for the solution 13 Inform the standards that are compliant by the product Solution Product Process and Information Security 14 Bidder shall provide references of similar projects successfully completed with various Scheduled Bank organizati
74. contact person mailing address with Pin Code Telephone No Fax No e mail address Mobile No etc Note 1 Technical Bids will be opened online and technical supporting document will be opened in physical form but Commercial bid will be opened online only Bidders may view the details https pnbindia biz registration login 2 Only technical supporting documents should be given in physical form only However Commercial Bid should be submitted only online in our e procurement system Web based application for Forex operations their terminal using their e procurement Page 5 of 11 oO INTRODUCTON PUNJAB NATIONAL BANK Punjab National Bank is one of the largest public sector banks with more than 6750 Branches Offices geographically located across India The Bank is fully computerized and networked in order to achieve the effective and efficient customer services to more than Nine Crore customers with global business of more than_Rs 850000 cores Today s banking is a technology enabled service industry Banking facilities are enabled through multiple delivery channels i e Branches ATMs Internet Banking Mobile Banking Call Centre Kiosks Corporate Websites and Social Networking Sites Banks have made huge investments in creating technical infrastructure for providing world class facilities to their esteemed customers Punjab National Bank is the front runner in adoption of IT amp ICT enabled in
75. d along with the technical bid In case a bidder fails to provide the same the bid would be summarily rejected 3 SCOPE OF WORK The system should be capable of providing the functionalities as described in Annexure VIII A brief overview of the requirement is outlined below and it is mandatory for the bidder to submit its response undertaking of compliance on the following Note All requirements mentioned hereunder should be complied by the bidder failing which it may lead to the rejection of the bid 3 1 Bidder to provide the proposed end to end web based solution for FOREX operations meeting the features and functionalities mentioned in the RFP as per Annexure VIII 3 2 Bank is looking for a complete end to end solution for Implementation of FOREX Management System The proposal should include hardware configuration software license requirement Implementation Customization Integration Migration Testing Training Onsite Support and maintenance of all necessary Software RDBMS and other utilities 3 3 The system should be scalable to support additional users and modules 3 4 The system requirements with hardware configuration need to be suggested for implementing the proposed system 3 5 The product should have built in features for providing role based access to users of the Bank 3 6 After UAT and before the date of live implementation of the software solution the product will be audited by Bank s appointed th
76. d fax Web based application for Forex operations Page 67 of 11 2 6 Ability to auto match confirmations received from counterparties that should be automatically uploaded through the SWIFT interface 2 7 Ability to generate automatic reminders for confirmations that have not been received in a pre defined 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 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 Ability to generate settlement advice for all deals Executed 3
77. d free of cost during the warranty and support period The warranty period would start on live implementation 3 14 All statutory changes will be incorporated in the software by the bidder during warranty and subsequent support period free of cost 3 15 The successful bidder shall be responsible to provide Annual Technical Support of the product The cost quoted by the bidder for the Annual Technical Support in the commercial bid will be valid for 4 years after the warranty period The bidder should be able to provide support of the application for its lifetime Lifetime means time up to which bank will be using the application 3 16 The solution provider should provide workflow templates process flow documents to facilitate bank users to easily customize it according to its needs where there is no change in the business logic 3 17 The shortlisted bidder should provide 12 months on site support for minimum duration of 11 30 a m to till day end opeations Monday to Friday and offsite 24 x 7 support during warranty period immediately after live implementation without any extra cost After completion of one year onsite support during warranty it is Bank s discretion to take onsite support from selected bidder 3 18 The bidder will be required to implement the solution at Disaster Recovery DR site of the Bank as required by the Bank No separate License fee and implementation cost would be payable to the bidder for DR implementa
78. e 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 Other Statutory Returns Overdraft in Nostro Accounts Excess overexposure Limit in Nostro Account Interbank Gap Analysis Due date diary of interbank deals Merchant due date diary Unconfirmed Interbank Contracts Currency wise position statement Currency wise outstanding in Investment Currency wise outstanding borrowing Maturity Profile of Deposits Investments Borrowings etc in respective currencies DO DO POP POTD DS POP DO DO POTD DO PO Brokerage reports including the following N Total trades broker wise for committed and settled deals Brokerage due payment reports Turnover status reports N Positions reports Deal wise Currency wise Counterparty wise Limits related report N Separate Fund flow reports for Forex and domestic Transactions Web based application for Forex operations Page 88 of 11 Deal cancellation report Deal amendment report Breach reports Counter party wise analysis reports Instrument wise analysis reports 25 DATA STORAGE Dat
79. e Principal Solution provider for overseeing and assisting in completing the implementation within the time frame A letter of undertaking from the Principal Solution Provider has to be submitted along with the bid documents A representative of the principal solution provider should support during the period of implementation and during warranty period 5 REQUIREMENTS OF PACKAGE Detailed user requirements enclosed in Annexure VIlIl Applicant should submit their response in the prescribed format as per Annexure VIIl and an undertaking of compliance of requirements Annexure IV and Annexure V of this document 6 COST OF BIDDING The Bidder shall bear all the costs associated with the preparation and submission of its bid and Bank will in no case be responsible or liable for these costs regardless of the conduct or outcome of the bidding process 7 BIDDING DOCUMENT The Bidder is expected to examine all instructions forms terms and conditions in the Bidding Documents Failure to furnish all information required by the Bidding Documents or submission of a bid not substantially responsive to the Bidding Documents in every respect will be at the Bidders risk and may result in the rejection of its bid without any further reference to the bidder Bidder should strictly submit the bid as per RFP failing which bid will be rejected as non responsive Web based application for Forex operations Page 14 of 11 8 AUTHENTICATION
80. e the bidder fails to Comply with any condition of the bid or any violation against the terms of the bid Without the beneficiary needing to prove or demonstrate reasons for its such demand Any Such demand made by said beneficiary shall be conclusive and binding on us irrespective of any dispute or difference raised by the bidder This guarantee shall be irrevocable and shall remain valid up to If any further extension of this Guarantee is required the same shall be extended to such Web based application for Forex operations Page 115 of 11 required period on receiving instructions in writing from Punjab National Bank on whose behalf guarantee is issued Not withstanding anything contained herein above Our liability under this bank guarantee shall not exceed Rs Rupees in words This bank guarantee shall be valid up to 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 on or before before 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 In witness whereof the Bank through its authorized officer has set its hand stamped on this Day of 2015 at Name of signatory Designation Bank Common Seal Web based application for Forex operations Page 116 of 11 eze ANNEXURE XI PROPOSED HARDWARE SPECIFICATION TECHNIC
81. ear warranty with onsite support for 12 months from the date of live implementation and Training Cost At present approx 80 user licenses would be required 2 Application implementation Cost 3 Annual Technical Support per annum To be quoted as Total price 4 price per annum Grand Total Optional items if desired by the Bank To be Negotiated with the L 1 bidder after reverse auction 4 Post Warranty On Site support per man month Rate valid for four years after warranty period 5 Additional customisation charges T amp M Rates per man month if required by the bank beyond SRS 6 Additional training cost per day training charges per faculty Note A L1 Criteria S No 1 S No 2 S No 3 B The bidder has to submit the commercial bid only in the above format Any other format would be summarily rejected at the time of opening the bid C The bidder has to quote for optional items also D Software license will be Scalable E Bidder shall quote all the figures in numbers followed by in words enclosed in brackets in all commercial bid F The Unit Cost should be exclusive of all Taxes Web based application for Forex operations Page 114 of 11 ANNEXURE X Proforma for the Bank Guarantee for Earnest Money Deposit To be stamped in accordance with stamp act Ref Bank Guarantee Date Punjab National Bank Information Technology Division 5 Sansad Marg New Delhi
82. ed application for Forex operations Page 110 of 11 Web based application for Forex operations 13 34 SFR Statement Statement of foreign 2 Currency balances held abroad 13 35 Country exposure report 2 13 36 Structural liquidity report 2 13 37 Comparative figures of capital charge as per 2 BASEL II AND Ill amp IMA guidelines 13 38 Cost amp Yield of outstanding BUY 2 SELL foreign Currency resources swap 13 39 Cost amp Yield on Sources and Uses foreign 2 Currency 13 40 Arbitrage Report 0 between forex and 2 domestic Market 13 41 Daily report on o s trading swaps FX 2 13 42 Daily report on trading profits Dealer wise 2 Cy wise 13 43 Report on derivatives showing MTM 2 booked P amp L PVBP Accrual Notional Amount 13 44 Risk Sensitivity Report on Derivatives 2 13 45 Table Grid on Option Greeks 2 13 46 Tenor wise distribution of greeks 2 13 47 Table Grid on option book maturity profile 2 13 48 Calculation of VAR and back testing 2 13 49 Simulation Report Investments 2 13 50 Statutory Liquidity Requirement STL 2 to be generated for Treasury branch as a whole on daily basis 13 51 Interest Rate Sensitivity Report to be 2 generated for Treasury branch as a whole on daily basis 13 52 Bucket wise Report of Certificate of Deposits 2 14 TOTAL SWAP TRADING P L 64 14 1 TOTAL CURVE WISE TRADING P L 2 14 2 RISK SE
83. een shots of 2 of your busiest screens Customizing The application functionality should be flexible and user friendly with capability to be customized by functional group department or Business Unit Can we write our own add on modules with your system How do customizations to your out of the box application affect implementation of upgrades of your product Describe the process for modifying data dictionaries Discuss any restrictions to this process For Web based application for Forex operations Page 34 of 11 example are there any specific data elements that cannot be modified by the user or are required Can the system allow different fields to be required and or displayed based on an individual user profile group or security class Does your product utilize a Graphical User Interface GUI tool for user to customize screens Describe the process for the customer to create a new screen Are there any restrictions to this process for example formatting standards that must be adhered to How do additions and modifications of screens affect the upgrade process and will these be preserved 10 What is your general integration strategy with third party packages and customer proprietary products 11 Can all customization be carried out using one tool set Describe the toolset If no how many tools does the developer need to
84. em must support pricing structure trade builder 15 36 System should support different trading calendars for FOREX operations Total Marks 352 Market Risk Management Requirements Sr No Business Process Max Marks S C Comments Market Risk 12 Online Real time monitoring of all types of deals in bank s trading book VaR Methodologies The system should be able to generate AGL VaR and provide risk measurements and analytical tools for different VaR Methodologies for user defined confidence levels amp holding periods The system should calculate individual transaction deal wise Asset Class wise Portfolio wise VaR i e FX Trading amp Banking Book MF UNITS Interest Rate related instruments under resources with an option for scalability in regard to holding period time horizon VaR computation methodology under overlapping non overlapping basis Provision for computing specific VaR amp incremental VaR Distribution of VaR across the following Dealer wise VaR Products wise VaR Market wise VaR MTM and revaluation Both FIMMDA and FEDAI valuation Web based application for Forex operations Page 63 of 11 should be supported 2 Counter Party Credit Risk 14 2 1 Real time limits monitoring for Currency 2 Dealer and Counterparty
85. en 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 6 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 7 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 8 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 9 There should be provision to find brokerage details and percentage wise distribution of business to brokers for risk management purpose 15 10 Profit and Loss Statement should be available for any specified period daily weekly monthly quarterly or any specified date range dealer wise segment wise amp consolidated 15 11 The system should support various bucketing conventions including end of months bucketing additionally system
86. ension matrices User defined and flexible shift on different market data inputs and horizon date P amp 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 12 4 The system should be able to display to a dealer the instrument wise authorized limits 12 5 The system should be able to update cash and security positions on a real time basis 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 amp 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 12 7 3 2 Investment Operation Category wise amp consolidated 12 7 4 Identification of the instrument amount already Hedged 12 7 5 Utilization of Contracts N 12 7 6 12 7 7 Holding Rates System should enable calculation of N Web based application for Forex operations Page 56 of 11 forward Rate 12 8 The system should be able to pre empt in case o
87. entry available in MT 940 950 16 3 The system to generate currency wise nostro wise mirror statements with all details including FC INR amount on daily basis Closing balance also should be made available 16 4 Auto reconciliation of the Inter Bank deals with the Nostro statements additional use of swift deal confirmations received may be taken into account Provision to view modify selected matched items by users 16 5 The system should be able to auto match one to many transactions and many to one transaction 16 6 List of un reconciled merchant entries should be generated branch wise and nostro wise and a follow up Letter to be printed out for mailing to Branches 16 7 The system should auto generate SWIFT query messages to the respective Nostro s for un reconciled entries 16 8 In case of EEFC FCNR entries system should be capable of handling auto reconciliation 16 9 Rules Creation for manual reconciliation forced matching 16 10 The system should give details of the entries reconciled un reconciled It should provide the following details 16 10 1 Value date Web based application for Forex operations Page 48 of 11 16 10 2 Transaction amount in foreign currency 16 10 3 Remaining amount of foreign currency 16 10 4 Branch reference 16 10 5 Agent reference 16 10 6 Branch details Branch Num
88. eports 5 4 Ability to price options via pricing 2 calculators on individual workstations 5 5 Ability to offer curve based pricing 2 capabilities 5 6 Ability to offer price and yield simulations 2 functionality 5 7 Ability to value positions through multiple 2 methods nominal maturity and market evaluation methods 5 8 Ability to provide different methods of 2 calculation for pricing function 6 Portfolio and Internal Performance 10 Management 6 1 Ability to provide profit and loss computing 2 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 2 calculations 6 3 Ability to support accrual calculations 2 6 4 Ability to enable profit amp loss by choice of 2 currency 6 5 Ability to allow configuration of profit and 2 business center hierarchies 7 Ability to configure the following 2 parameters for a portfolio Currency Reference currency Security and user profile Display layout Portfolio levels of detail etc 8 Derivatives 50 8 1 Trade capture from NSE MCX 2 8 2 Monthly Provision should be calculated 2 and posted and reversed automatically 8 3 Daily bench mark rate updating 2 8 4 Upload of exchange file and MIM 2 Web based application for Forex operations Page 52 of 11 process and posting
89. er will enter into a Non Disclosure Agreement to maintain the secrecy of Bank s data as per following e That the Successful Bidder will treat the Information as confidential and shall not disclose to any third party The Successful Bidder will also agree that its employees agents sub contractors shall maintain Confidentiality of the Confidential Information Web based application for Forex operations Page 19 of 11 That the Successful Bidder will agree that it shall neither use nor reproduce for use in any way any Confidential Information of the Bank without consent of the Bank That the Successful Bidder will also agree to protect the Confidential Information of the Bank with at least the same standard of care and procedures used by them to protect its own confidential Information of similar importance Without limitation of the foregoing the Successful Bidder shall use reasonable efforts to advise the Bank immediately in the event that the Successful Bidder learns or has reason to believe that any person who has had access to Confidential Information has violated or intends to violate the terms of the Contract to be entered into between the Bank and the Successful Bidder and will reasonably cooperate in seeking injunctive relieve against any such person That if the Successful Bidder hires another person to assist it in the performance of its obligations under the Contract or assigns any portion of its rights or delegates
90. ettled amicably If however the parties are not able to solve them amicably the same shall be settled by arbitration in accordance with The Arbitration and Conciliation Act 1996 and the award made in pursuance thereof shall be binding on the parties The Arbitrator Arbitrators shall give a reasoned award Any appeal will be subject to the exclusive jurisdiction of courts at State of Delhi The bidder shall continue work under the Contract during the arbitration proceedings unless otherwise directed in writing by the Bank or unless the matter is such that the work cannot possibly be continued until the decision of the arbitrator as the case may be is obtained The venue of the arbitration shall be State of Delhi Web based application for Forex operations Page 24 of 11 11 PATENTS RIGHTS The supplier shall indemnify the bank against all third party claims of infringement of patent trademark or industrial design rights arising from use of the Goods or any part thereof in India 1 The supplier shall at their own expense defend and indemnify the Bank against all third party claims or infringement of intellectual Property Rights including Patent trademark copyright trade secret or industrial design rights arising from use of the products or any part thereof in India or abroad 2 The supplier shall expeditiously extinguish any such claims and shall have full rights to defend it there from If the Bank is required to pay
91. etween Rs 5000 Rs 6000 Cr Current Status of Treasury Management System in the Bank The Bank has implemented Finacle as its Core Banking System from M s Infosys across all the domestic and overseas branches Domestic treasury operations of the bank are being handled by KONDOR from M s Misys FOREX Operations are being handled by three different systems as follows KONDOR from M s Misys is being used for interbank FOREX transactions at front office level RETAD from M s Thomson Reuters for Merchant transaction reporting system of branches EBT Enterprise Banking treasury Back office solution from M s Saksoft for all FOREX transactions PRESENT SETUP Merchant deals are entered by the branch in RET AD Reuters Electronic Trading application and after the rates are given by dealers at treasury the deals flow to KPLUS application From KPLUS the deals flow to EBT Enterprise Banking Treasury FOREX Back office application for further processing authorization and MIS generation Interbank deals are entered by the dealers directly into KPLUS and after which they flow to EBT for back office authorization Accounting and settlement of all foreign exchange transactions happen through EBT and the software is used by us since 2003 Details of the EBT system Architecture Client Server Architecture Front End Power Builder Database Oracle 10g Hardware Sun Server Web based application for Forex operations
92. f Day Exception report should be 2 generated mandatorily amp no user should have Web based application for Forex operations Page 64 of 11 the power to skip the same 7 3 The system should be able to carry out sensitivity analysis 7 4 The system should be able to support warning messages and exception reporting for credit exposure limit violations 7 5 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 LIMITS TO MARKET OPERATIONS 8 1 The system should be able to track user defined trading portfolio wise amp dealer wise limits and provide viewing and reporting 8 2 The system should be able to define and monitor limits at various levels in the hierarchy 8 3 The system should be able to issue a system notification to dealers that a limit is violated POSITION TRACKING 9 1 The system should be able to update positions on a real time basis 9 2 The system should be able to view positions for user defined portfolios 9 3 The system should be able to online monitor Trading Book limit PV0O1 limit NOOP Limit VaR _
93. f all FX positions on 2 basis of FEDAI published EOM rate System must be capable of accepting the INR cross forward rates quoted for maturity on EOM pilar dates and bootstrap and correctly evaluate all INR and non INR FX positions for all maturity dates and interpolation for forwards 14 2 Separate GAP revaluation facility for 2 FCNR B Nostro EEFC DRFC DDA related portfolio 14 3 Separate GAP revaluation facility for 2 individual portfolio 15 SYSTEM SUPPORT FOR DERIVATIVE 72 TRADES 15 1 Structuring Tools 15 1 1 System should provide powerful 2 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 2 Generation of deal slip and 2 confirmation letter interest rate reset notice payment settlement notice Web based application for Forex operations Page 59 of 11 option exercise notice barrier trigger notice 15 3 Deal slip should contain information of the underlying Deals 15 4 A daily transaction report with filters should be generated by the system showing all purchase and sale details during a particular day The report should be generated after all deals are entered 15 5 On a daily basis wh
94. f possible violation of the following limits 12 8 1 Counter party limits AGL IGL Limits 12 8 2 Counter party group credit limits Instrument wise limits Broker limits Settlement amp Clearing Agent Limits 12 9 The system should be able to analyze the overall portfolio or any user defined portfolio by changing selected parameters NO POP DO PO PO PO 12 10 The system should be able to estimate projected cash flows by currency 12 11 The System should be capable of real time portfolio management Flexible Risk position P amp L viewer Real time monitoring What if analysis and hedging P amp L Variance Extensive trade querying capability 13 SYSTEM SUPPORT FOR FOREX TRADE 52 13 1 Facility of netting of inter bank forward deals for any particular date in order to release counter party limits Bilateral netting 13 2 All deals done in forex should be captured by Dealer s pad time wise currency wise and dealer wise 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 13 4 Facility of inputting forex deals in 4 categories Merchant 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 f
95. f the person putting the remark Viewing a particular transaction for reference purpose should be available as a background menu item System should have a CLOSED Bill marking for those bills in which no payment is expected and such bills should not be there in outstanding report but in a separate report System should have a unique transaction id which enables the user to view the history in all aspects right Web based application for Forex operations Page 74 of 11 from lodging to closure of a bill Modification of any field should be allowed in all cases of input before authorization All Forward Contracts should necessarily be booked through customer codes which should be uniform across the branches Balances in Forward Contracts and EEFC accounts should be available as background menu An upload of Bills Booking should be enabled through links with FINACLE generated reports 14 2 2 EXPORT BILLS PURCHASED NEGAOTITAED lf a forward contract is involved details of the contract should be visible to the authorizer in the same screen The rate should be shown as either the purchase rate contract rate or the average rate if more than one contract is involved The name of the party and the premium paid up to date should be correct and visible There should be provision for standard EDC rate for the day which should be automatically populated calculated u
96. forward open position positions should be Interbank discounted to arrive at Exposure O S present value Counter Party Exposure Currency Future Exposure Daily Day Light Single Largest Position Forward Open Position f INTRA DAY Inflow And Outflow Of AS PER RBI 2 LIQUIDITY Fund On Different CIR NO REPORTS Nostro Accounts On 46 21 04 098 Daily Basis With Time 2014 15 Stamping g DAILY Dealer wise profit and The system 2 FOREX turnover data available should enable Web based application for Forex operations Page 81 of 11 TRADING for trading deals only segregation REPORT of profit dealer wise and deal wise trading merchant amp Arbitrage 14 2 8 WEEKLY REPORTS 4 2 a Weekly Ass_ Statement of Affairs Assets amp 2 ets Liability DEPO LOC India and Liability In outside india should be Rs segregated Mirror Balance Summary CBS dayrpt 6 3 b Un Unpaid Demand Draft For NDTL 2 reconcilled entries calculation for entries CRR SLR 14 2 8 FORTNIGHTLY REPORTS 8 3 a BAL Nostro Balance O S Nostro Count 2 Statement INVM Sweep Balance ry and Vostro Balance Currency wise and Vostro Balance Cou ntry wise and Balance in EEFC RFC AND ESCROW A C s b Spl Return FCI PCFC FCTL Balances 2 VIII Reportin Nostro Balance Held Abroad g Friday and Loans in Foreign Currency In Rs Crore
97. functionality 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 Database Security IN The proposed solution should allow users to be controlled creation activation deactivation deletion etc by a specific administrator N Addition of features should be allowed only through a properly revised upgrade and data migration method SYSTEM SECURITY amp SYSTEM ADMINISTRATION 28 8 1 The system should enable profiling of users and definition of control levels amp 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 after unsuccesfull attempts time out force password change for events etc 8 5 System Administration should provide for creation deletion and modification of users upgrade users and assigning data access modification rights of various user groups 8 6 Access only to designated users and user set up should be central
98. g Digital Signature is binding the bidder to the contract 19 DEADLINE FOR SUBMISSION OF BIDS Bids must be submitted not later than the specified date and time mentioned in the Bid Document If specified date of submission of bids being declared a holiday for the Bank the bids will be received up to the specified time in the next working day The Bank may at its discretion extend this deadline for submission of bids by amending the bid documents in which case all rights and obligations of the Bank and bidders previously subject to the deadline will thereafter be subject to the deadline extended Physical bid will be submitted after showing the proof of online submission 20 PERIOD OF VALIDITY OF BIDS Web based application for Forex operations Page 16 of 11 Bid shall remain valid for 180 days from last date of submission of bid prescribed by PNB A bid valid for shorter period is liable to be rejected by PNB The bidders may be required to give consent for the extension of the period of validity of the bid if so desired by PNB in writing Refusal of such consent would not forfeit the Bid Security and granting of request will not allow the bidder to revise modify his bid 21 LATE BIDS Any bid received by the Bank after the deadline for submission of bid will be rejected 22 BID CURRENCY The Prices in the bid document shall be expressed in Indian Rupees INR only 23 LANGUAGE OF BID The bids prepared by the bidder
99. ge 17 of 11 i TECHNICAL BID Stage l TECHNICAL BID will contain the Compliance statement as per the Terms amp Conditions mentioned in the RFP and NOT contain any pricing or commercial information at all Technical bid documents with any commercial information will be rejected In the first stage only TECHNICAL BIDs will be opened and evaluated Only those bidders confirming compliance to all the terms amp conditions of RFP document shall be short listed for commercial stage ii COMMERCIAL BID Stage Il In the second stage the COMMERCIAL BID of only those bidders whose technical bids are short listed will be opened 27 EVALUATION AND AWARD CRITERIA After opening of the technical bids all the documents and annexure except commercial documents offer will be evaluated first by the bank First received bids will be evaluated based on the eligibility criteria Technical bids of only those bidders satisfying the eligibility criteria will be evaluated Only those bidders satisfying the technical requirements and accepting the terms and conditions of this document shall be short listed for further steps Technically qualified and successful bidders may be called to make presentation of the solution offered by them as per the schedule decided by PNB It may be noted that commercial bids will be subjected to following evaluation process Only those bidders scoring 70 70 marks out of 100 or above in the technical eval
100. guidelines 2 14 31 Monthly payment of brokerage for bond deals 2 14 32 CSGL module should be available and it 2 should strictly comply with RBI guidelines in respect of operational amp reporting requirements 15 MISCLLANEOUS REQUIREMENTS 10 15 1 Notional rate monitoring 2 15 2 Sharing of Exchange profit to AD branches 2 on HY basis 15 3 Facility to transfer income amp expenditure to 2 CBS on yearly basis 15 4 Platform for rectification of old dated deals 2 15 5 Option to report manually incase of failure of 2 online reporting of the deals TOTAL MARKS 612 Web based application for Forex operations Page 112 of 11 Note Technical Bid Evaluation It may be noted that commercial bids will be subjected to following evaluation process Only those bidders scoring 70 70 marks out of 100 or above in the technical evaluation will be only elegible to participate in the next stage of the bidding process i e commercial evaluation Date Place Signature of Authorized Signatory Name of Signatory Designation Seal of Company Web based application for Forex operations Page 113 of 11 oO RFP for Software Solution for web based application for forex operations Commercial Bid To Be submitted in e Procurement system onl ANNEXURE IX S No Particulars Cost Rs 1 Per User Application Software License Fees including one y
101. her terms and conditions as may be determined by the Bank to be necessary for the due performance of the work in accordance with the Bid and the acceptance thereof with terms and conditions shall be contained in a Memorandum of Understanding to be signed at the time of execution of the Form of Contract 3 PERFORMANCE BANK GUARANTEE The successful bidder has to submit the Performance Bank Guarantee of 20 of the order cost to selected bidder within 15days of award of contract valid up to 2 years Before the expiry of this PBG selected bidder has to provide the PBG of 20 of ATS cost valid up to the ATS period 4 WARRANTY The solution should have a comprehensive on site warranty of one year after live implementation of software applications Warranty should cover trouble shooting removing bugs errors and enhancement if required There will be no charges for additional customization during warranty All upgrades updates new version releases Web based application for Forex operations Page 21 of 11 will be provided during warranty period with no extra cost to bank During implementation phase if any upgrades updates new version releases comes it should be implemented at no extra cost to bank Bidders will ensure smooth functioning of the package for the first 12 months by deputing one on site support engineer at bank s identified site from 11 30 a m to till day end oopeations Monday to Friday for which a se
102. implementation of Web Based Application for Forex Operations Solution for Punjab National Bank We submit our Bid Document herewith If our Bid for the above job is accepted we undertake to enter into and execute at our cost when called upon by the Bank 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 We understand that if our Bid is accepted we are to be jointly and severally responsible for the due performance of the contract We understand that the Bank is not bound to accept the lowest or any bid received by the Bank and the Bank may reject all or any bid and it 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 We understand that the names of short listed bidders after the completion of first stage Technical Bid and the name of the successful bidder to whom the contract is finally awarded after the completion of the second stage Commercial Bid shall be communicated to the bidders either over phone e mail letter notice board Dated at day of 2015 Yours faithfully For Signature Name Address Authorised Signatory Web based application for Forex operations Page 39 of 11 ANNEXURE VII COMPLIANCE STATEMENT DECLARATION Please note that
103. ird party Software Audit firm in house team All audit points raised by the Software Auditor in Audit should be complied by the selected bidder without any extra cost to the bank and within the stipulated time frame mutually decided between the Bank and the selected bidder 3 7 The solution should have built in security features to help only authorized users to use the application as per roles defined Open Web Application Web based application for Forex operations Page 10 of 11 Security Project OWASP guidelines are followed and complied by the bidder 3 8 Integrate the proposed solution with Bank s Core Banking Solution Domestic and foreign branches Subsidiary with necessary interface 3 9 Proposed Solution should also provide interface with RETAD CBS EDW KPLUS MGR MLS CCIL CLS SWIFT etc 3 10 Customization of the proposed solution to meet the Bank s Functional Operational Risk Management and MIS requirements of Treasury with all required interfaces 3 11 Ability to scale up the services at multiple centres in India and overseas 3 12 The proposed solution should cater to the needs of our Statutory and Regulatory requirements of present and immediate future of the Bank 3 13 The product shall be under a warranty of minimum one year from the date of live implementation during which additions modifications bug fixing shall be done without any extra charge Further all upgrades patches would be provide
104. ised for PCFC amp Arbitrage purpose g OD Nostro Debit Balance in any Date wise OD 2 Balance nostro Nostro Balance h DSB Last MAP 4 Interbank deal O S Sale 2 Reporting register Yearwise Purchase Friday Outstanding Contracts Ris Unreconciled Nostro k Weighted Entries Statement of Assets Affairs CARD Rate Contarts and Asset Liability System Derivatives O should support S ECB Revaluation of Forward Position at user defined Frequency and Show Web based application for Forex operations Page 83 of 11 Accounting entries Capable to mark to market all positions and calculate the profit amp Loss i MAP DSB X AND SIR DSB XI MAP 12 Asset liability currency wise Interbank deal register Statement of Maturity and Position and Interest Rate Sensitivity j P L Revenue Profit Loss Statement k Balance Sheet Statement OF Affairs l True Currency Position Unreported FEX Transaction for more than INR 1 00 Lac m ALE OSMOS Outstanding forward Contract Deals Counter party wise Inter Bank amp Merchant gt Notional Principal Positive MTM PFE Negative MTM Notional principal amp Credit Equivalent of Forward Turnover during the month and Outstanding atthe end of the month Trading Book Banking Book n Structural Liquidity MAP NEW O RCAP Outstanding forward Contract Deals Counter party wise Inter
105. ist in the examination evaluation and comparison of bids the bank may at its discretion ask the bidder for clarification The response should be in writing and no change in the price or substance of the bid shall be sought offered or permitted 17 BID EARNEST MONEY Bidder has to submit the Bid Earnest Money of Rs 20 Lakh either online before last date of bid submission or in the form of BG as per Annexure XII for the period of 6 months favoring PUNJAB NATIONAL BANK IT DIVISION payable at Delhi and filling all the details in the format available for the same in our e procurement system at website https pnbindia biz The EMD will be returned on completion of tender process and no interest will be payable on EMD amount The bidders should claim the EMD within 6 months from the completion of tender process after which the bank is not liable to return the EMD Details for online payment IFSC Code PUNB0015300 Bank amp Branch Punjab National Bank Sansad Marg New Delhi 110001 Account No 0153002100567220 16 digits Proof of the transaction printout to be submitted along with the bid documents Imprest account HO IT Division 18 SUBMISSION OF BIDS The bidders shall duly complete the formats of Technical Bid submit in system as well as hard copy and Commercial Bid will be submitted only online through our e Procurement System using their Digital Signature at website https onbindia biz The bid Submitted by the bidder usin
106. it r Modification of Deals In case of wrong entries discrepancies deals to be modified for rectification S System should support FEDAI Revaluation or any other method of revaluation proposed by the bank of Forward Position at user defined frequency and show accounting entries in simulated environment before generating the accounting entries on user acceptance t System should do calculation and posting of FEDAI Revaluation of outstanding forward contracts deals on a monthly basis or at the intervals specified by the bank from time to time u Merchant forward contracts due within spot date for overdue cancellation purpose v Merchant forward contract register between 2 dates w Report of outstanding forward contracts as on date and also between any two dates Web based application for Forex operations Page 76 of 11 X Report of forward contracts due for auto cancellation 2 y Auto generation of mail letter to branches for claim of 2 gain or payment of loss due to cancellation of contract Z The system should have the facility to view full 2 transaction details contract wise aa Report of contracts due as on date 2 14 2 4 RESOURCES 62 a PCFC Pre Shipment Credit Opening Export and 2 Import purpose Modification Closure Extension Delinking opening using Merchant forwards b Report of all
107. itiatives in providing new age technology driven banking services to its customers PNB has always looked at technology as a key facilitator to provide better customer service and ensured that its IT strategy follows the Business strategy so as to arrive at Best Fit The Bank has made rapid strides in this direction Anytime Anywhere banking facility to all the customers The Bank has also been offering Internet banking services to its customers which also enables on line booking of rail tickets payment of utilities bills purchase of airline tickets etc Towards developing a cost effective alternative channels of delivery the Bank with more than 8300 ATMs and it is one of the largest ATM network amongst the nationalized banks Web based application for Forex operations Page 6 of 11 2 BACKGROUND AND PURPOSE OF THE PROJECT Punjab National Bank hereinafter referred to as the Bank with Head Office at New Delhi and its Treasury Division at Mumbai is interested in implementing software solution for FOREX Operations of Treasury Our FOREX Operations is centralized at Treasury and we are maintaining 37 NOSTRO accounts for smooth functioning of FOREX transactions All over India our 188 branches are authorized for handling the FOREX business Our daily transactions pertaining to merchant deals is around 2500 with volume of approx Rs 800 Cr approx and the interbank transactions are around 1000 per day with volume b
108. less than Rs 15 Crore during each year Audited Financial Statements of last 3 years should be submitted in this regard The bidder should have shown positive net worth as per last audited balance sheet All the mandatory fields in the functional requirements as per annexure VIII should have been implemented and live in atleast two Scheduled Bank The bidder should not be involved in any litigation which threatens solvency of company and undertaking in this regard is to be submitted by bidder Web based application for Forex operations Page 27 of 11 The solution provider company should be CMMI Capability Maturity Model Integration level 3 complied In case the solution provider company is not CMMI 3 compliant then the solution to be provided should be accompanied by a certificate from the CMMI level 5 company confirming after evaluation audit that the solution provided is in conformity with CMMI 3 standards Bidder should be the owner of the software solution offered or should have exclusive right of use deploy the software in India 10 The bidder has IP Intellectual property rights for the products offered to Punjab National Bank and an undertaking to this effect to be given 11 The solution provider should also comply with the Information Security standards as per ISO 27000 series as applicable for the implementation Date Place Signa
109. licated across all components Conversely weak linked components will have market events applied independently across all components 34 1 Ability to support P amp L reporting across various 2 entities across different timezones 34 2 Ability to maintain more than one accounting 4 standard for any entity e g Ind AS GAAP etc TOTAL 756 Products and Instruments Requirement Sr Business Process Max S C Comments No Marks 1 FOREIGN EXCHANGE 1 1 Following currencies should be 2 available in the system AED AUD CAD CHF EUR GBP HKD INR JPY SEK SGD USD SAR DKK NOK and all other legal currencies 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 amp JPY USD 1 2 Inter bank FX 2 a Cash b Tom c Spot d Forward 1 3 Merchant FX 2 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 Web based application for Forex operations Page 91 of 11 i Customer Profiling including monitoring of limits contracted method amp past performance method margin MTM margin for Forward contracts monitoring tools for contract cancelled under underlying others past performance with a trigger if brea
110. llar 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 10 2 Cryptic Deal Booking and Reversal and should generate correct amp complete accounting entries at Treasury amp 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 amp interbank 10 4 System should enable to do cross currency deals with any base currency for e g a JPY US deal could Web based application for Forex operations Page 71 of 11 be booked with JPY as base currency 10 5 The system should be able to generate a unique number for each deal created 10 6 The system should be able to generate reports display of open Forex Cu
111. ly controlled through a specific administration module 8 7 Maker Checker concept for all type of transactions 8 8 Generation of detailed audit trails with the Web based application for Forex operations Page 100 of 11 following minimum features 8 9 List of all users logged on to the system 2 8 10 List of attempted unauthorized logins 2 8 11 Details of databases accessed and modified 2 by the users 8 12 Generation of daily audit trails Separate 2 audit trail for exceptional transactions 8 13 Provide adequate backup and recovery 2 features 8 14 Database locking features in the situation that 2 there are multiple accesses and updates on the same record Total Marks 52 REPORTS Sr No Business Process Max S C Comments Marks REPORTING 20 1 1 System must come pre packaged with 2 standard reports that can be modified customised 1 2 System should support on demand and 2 batch reporting 1 3 System should have the framework to 2 generate regulatory reports and support all required data fields 1 4 System must support GUI based business 2 intelligence tool for configuring reports 1 5 System must interface with enterprise 2 reporting solutions tools Integration 1 6 System must have support for out of the box 2 connectivity to external systems trading systems downstream systems payment
112. months DETAILED FUNCTIONAL AND TECHNICAL REQUIREMENTS All the requirements are mandatory Bidder shall indicate in column 3 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 GENERAL REQUIREMENTS Sr No Business Process Max S C Comments Marks 1 GENERAL POINTS 14 1 1 Multi currency system The system should have the ability to process track and 2 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 amp JPY USD 1 2 Reference Data The system should be able 2 to capture and utilize static data associated with counter parties amp their ratings scrip products accounts and categories like industries wise code etc 1 3 Multiple levels The system should be able 2 to provide full support for multiple Web based application for Forex operations Page 41 of 11 o
113. n a FCNR B is opened in our system there should be separate flag so as to know number of fresh FCNR B opened during particular period On maturity of FCNR B deposits are renewed by the branch where auto renewal option is not given Branches send credit notional rate to us along with details of the FCNR B to be renewed On the basis of information and credit received we are renewing deposits at ours and send credit to branches to enable them to reverse their suspense entry The auto renewal is being done by the system as such branches come to Web based application for Forex operations Page 78 of 11 know at the time of quarterly reconciliation This is routine process and no of entries is many on day to day basis Our requirement is that this should be uploaded in the system by extracting details from the CBS C At the time of interest payments during the currency of the FCNR B there should be provision to keep record of the interest payment along with the facility to view the principal amount interest paid and interest credited with date d Provision for calculation of Overdue interest as per RBI guidelines should be there e Reports showing Fresh FCNR B opened excluding Renewal during particular period Currency wise Brach wise f Reports showing Fresh FCNR B opened including Renewal during particular period currency wise Brach wise g Reports showi
114. n case of system failure and Conduct DR drills in conjunction with the Bank 3 35 Solution should support all industry specific standard format i e ISO 20022 ISO 8583 SWIFT messaging formats 3 36 System should support RBI s directives and guidelines pertaining to FOREX Management issued time to time without any additional cost to the bank 3 37 The proposed solution should provide audit reports and Tools for the Bank s internal concurrent statutory SEBI CCIL IDRBT RBI audit inspections etc 3 38 The vendor has the sole responsibility of migrating the complete data from EBT to the proposed solution 3 39 The solution should support DR with proper real time replication 3 40 Closure of all VAPT EAPT IS AUDIT observations pertaining to the proposed solution within time frame stipulated by Bank without any additional cost to the Bank The observations may be made at any frequency by the bank or bank appointed external system audit team Live implementation is defined as customization amp implementation of all modules as per Annexure D after successful implementation at defined locations i e Treasury Mumbai of PNB 4 OTHER CONDITIONS 4 1 The entire activity under this facility would be guided by and conform to guidelines of PNB government agencies legal provisions etc if any 4 2 Selected bidder will be responsible for managing the actions and activities of its personnel or the personnel of its subcontractors
115. n the form of Demand Draft BG as per Annexure X Please mention the tender name with year and company name at the back of DD 11 Proposed Hardware Specification Annexure XI 12 Copy of last three years audited balanced sheet 13 Power of attorney along with Board resolution in favour of authorized person signing the Bid documents 14 Commitment certificate for service support duly signed by the Company Secretary 15 Letter of Undertaking from Principal Solution Provider is to submitted regarding providing adequate support for overseeing and assisting in completing the implementation as stated in point h under Clause 4 i e Other conditions 16 All pages of bid documents must be signed by authorized person and all pages of the bid document should be numbered in serial order i e 1 2 3 Note Format for Commercial Bid as per Annexure IX to be submitted in e procurement process only No h Date Date Place Signature of Authorized Signatory Name of Signatory Designation Seal of Company Web based application for Forex operations Page 118 of 11
116. ned will be 5 10 b End Users Training for branch level users The operators will be comprehensively trained in all application operation tasks Training will be provided in batches of 10_users Total number of users to be trained will be 80 c End Users Training for senior officials This will involve training of senior officials of bank in operation and management of application software The number of this type of training will be 4 each of 1 day 7 DOCUMENTATION Web based application for Forex operations Page 22 of 11 Complete documentation of the application software in hard and soft copy should be provided along with implementation of the software There will be separate manual for each documentation Documentation will include Utilities reference manuals Documentation on Design Logic and Program Development Operator Reference manuals for each operator task Error messages manuals Documentation on troubleshooting File table structures Indexes and Relations On line tutorials and help documentation Data Dictionary Software Requirement Specification SRS VVVVVVVV WV 8 PAYMENT TERMS The Payment will be made on the achievement of the milestones mentioned as under Milestone License fee Implementation Sit After SRS Sign off from Bank Delivery of the software as per finalized SRS and 20 User Acceptance Test sign off by the brie Deploying the application on live setup for
117. ng Pre mature Closure of FCNR B during particular period currency wise Brach wise h Reports showing Closure of FCNR B during particular period currency wise Brach wise i Report Showing Total Outstanding as on particular date Currency wise Brach wise showing all the details such as Resource no Txn Date Bracnh Ref No Foreign Currency Amount period Value date Rate of intt Etc j Statement of account of the branch should be viewed by the branch so that reconciliation with CBS can be done at frequent interval by the branch k All the report should be available in MS EXCEL PDF format which can be easily mailed to Branches during the reconciliation l EEFC accounts should never be overdrawn and show debit balance m If more than one forward contract to be utilized under one reporting system is not allowing There should be provision for such reporting n Statement of account of the branch should be viewed by the branch so that reconciliation with CBS can be done at frequent interval by the branch O In present system while utilization and credit by system on Resource No is displayed in the statement of account The correct narration e g IMT No OMT No CBS Account No should also be displayed in narration Web based application for Forex operations Page 79 of 11
118. nless changed by the authorized officer The reference no of the bill must only be the branch Ref No and the system reference if any should be unique and not named Reference Number but System No The status of the bill should show distinctly whether it is crystallized or not The generation of outstanding bills report ought to be for a particular day on any day if specified e g It should be possible to view outstanding bills on 25 02 out of those outstanding as on 25 01 or any previous date and it should clearly show the purchased negotiated amount as well as the remaining amount There should always be a REMARKS column visible in which the special cautionary comments along with the date time name of the inserting officer must be present There should be a complete record visible for all the changes made in the bills tenor etc with date time name of the authorized officer System should automatically take TT Selling Rate for FBC Short realization and TT Buying for any amount of excess realization Also it should have capability for realization of excess amount under Forward Contract also FORWARD CONTRACTS The system should have the facility to view authorize forward contract deal inputs by dealers Facility to view contract rate SPOT PREMIUM Facility to view deal time and cancellation time Web based application for Forex operations Page 75 of 11
119. ntract If vendor fails to deliver any or all goods or perform services within stipulated time schedule the purchaser shall without prejudice to its other remedies under the rate contract deduct from the ordered price as liquidated damages a sum equivalent to 1 of the price for each week of delay until actual delivery of the goods or until the cancellation of order The purchaser has right to cancel the order in case delivery services not affected within Web based application for Forex operations Page 25 of 11 stipulated time schedule The purchaser is entitled to withhold deduct from the purchase price or any other 15 INDEMNITY Bidder shall have to indemnify the Bank against any loss expenditure incurred or any disputes claims from anybody for having used using patented design Any patented design shall be under manufacturer s license agreements and a copy of such agreement authorizing the bidder to manufacture the patented designs shall be given to the Bank 16 FORCE MAJEURE Any failure or delay by vendor or Bank in performance of its obligations to the extent due to any failure or delay caused by fire flood earthquake or similar elements of nature or acts of God war terrorism riots civil disorders rebellions or revolutions acts of governmental authorities or other events beyond the reasonable control of non performing Party is not a default or a ground for termination The affected Party shall notify the
120. o compare foreign currency forecasts from one time to another or to the actual numbers for the same period The system should be able to save foreign exchange rates within the system Facility to record counterparty confirmation for Interbank and money market deals The system should be able to calculate commission on brokers service tax and tds as per applicable rates SETTLEMENT AND CONFIRMATION Web based application for Forex operations Page 72 of 11 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 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 FACILITY FOR MONITORING AND PROVIDING NECESSARY FACILITY TO CAPTURE REPORT THE FOLLOWING 13 1 Due dates for realization N 13 2 Compare the actual date of realization with the due date and calculate late early realization charges gains N 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 promp
121. o 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 ACCOUNTING 26 Web based application for Forex operations Page 69 of 11 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 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 7 8 Ability to support concurrent use application of
122. obustness to include future expansion and scalability with constant growth of business requirements of the bank The number of Deals per day in FX Treasury is about 4000 deals day including merchant and interbank and expected to grow by 10 15 per year during the project period of next 5 years The system requirements with hardware configuration need to be suggested for implementing the proposed system However the Bank reserves the right to purchase the hardware System Operating System Environment software licenses from the selected vendor or to procure or to use the same already available with the bank The main site will be at Mumbai with its production servers to be placed at DRS Belapur Navi Mumbai The Disaster Recovery site should be established at Data Centre HO ITD New Delhi The proposed system should be in a position to supply the data to the Bank s Data Ware House at a pre determined interval The proposal will be for a complete end to end solution for FOREX management system with the following components 1 FOREX Front office and Back Office Solution 2 Application environment Software 3 Interface with external systems including CBS RET AD KPLUS MGR MLS EDW CCIL CLS amp SWIFT etc 4 Cost of onsite support Web based application for Forex operations Page 8 of 11 5 Generation of periodic messages of MT103 MT102 MT300 SW203 SW300 etc 6 Ancillary Services existing data migration
123. odified roll convention 15 18 System should support real time or on demand availability of various regulatory reports including FTD NOOP Day light GAP NDTL SLR etc 15 19 System should support securities position bucketing by duration 15 20 System should support preferred margin pricing and time to next coupon duration for floating securities 15 21 System must support the linking Web based application for Forex operations Page 61 of 11 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 22 Hedge effectiveness testing of derivatives deals with underlying assets liabilities 15 23 System should specifically tag underlying items with hedging instrument to make available P L or accrual comparison of underlying and hedging deals 15 24 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 25 System
124. 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 Web based application for Forex operations Page 47 of 11 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 58 16 1 The system should be able to capture all the entries in Nostro statement data transmitted by SWIFT Interface with inward SWIFT messages such as MT 940 950 16 2 Provision to provide unique continuous number for each
125. oftware Platforms Is there any software that the bidder OEM provide at no extra cost to the bank Vill Database Platforms Does the application support multiple RDBMS Specify all supported RDBMS The application should be platform OS DB Application server independent Maintenance Describe the maintenance process of the application after deployment Provide details on the skills number of resources required and the effort requisite to maintain the application suite Please include database administration and system administration efforts Deployment Describe the deployment process What additional hardware and software is required to deploy the applications on a WAN and for remote users without access to our network Describe the deployment process when application is upgraded xI Networking Protocol Web based application for Forex operations Page 37 of 11 Solution should support work in TCP IP xII Others What is the deployment strategy recommend by the bidder Capability to run the reports on the browser Can the common web server deployed for other applications integrate with this application What is the authentication mechanism used by the application Ability to integration with Windows Active directory for authentication purposes The security features of the proposed applic
126. older system structure 13 5 13 6 The facility of inter dealer position transfer The facility of inter bank netting of forward deals Web based application for Forex operations Page 57 of 11 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 Once the merchant deals from RET AD and the interbank deals from the trading platforms flow to the system the front office position pad is to be updated enabling the dealers to have dealer wise and currency wise position 13 9 Deal modification and deal deletion facility before back office authorization and the audit trail of these modifications deletions to be recorded by the system 13 10 Report of all deals modified deleted between any two dates 13 11 Trading Profit Loss report dealer wise currency wise 13 12 View facility of full detail of position pad Dealer wise currency wise total position 13 13 Facility to input Reciprocal deals 13 14 Report of all NOSTRO Balances at every day 13 15 Input facility of fund transfer from one NOSTRO to other 13 16 SWAP deals Trading Facility for daily MTM Facility to input carry cost Report of profit loss on daily basis 13 17 Facility to view unauthorized deals pending for authorization 13 18 Cumulative turn over report of deals
127. ons Page 29 of 11 Whether the company has CMMI IIl V Certification and is valid Please mention the validity period 9 Whether the company has put in place ICMM practices for software 10 Please inform the standards that are compliant by the company COBIT BS ISO etc Date Place Signature of Authorized Signatory Name of Signatory Designation Seal of Company Web based application for Forex operations Page 30 of 11 PART Il Product Information The following information should be provided ANNEXURE IV S No Information Required Particulars Response 1 Software Information Name of the Software Product Solution Version of the proposed software Annual sales of the product during the last three years number of installations Annual installations live in the last three years similar to the module version proposed Year and place of the first live installation similar to the module version set proposed Number of versions released till date since the last three years e Release month year of last version e Release month year of the proposed version Hardware Platforms supported Provide details as per Annexure Xl Operating systems for the proposed version of the solution component Provide specific information for each solution component Language and development environment in which the proposed version is
128. ons Foreign Currency Bank accounts PAN SWIFT Code RTGS IFSC CCIL CLS Code etc 9 2 Brokers The system should facilitates 2 capturing the list of notified approved brokers and should capture the following Web based application for Forex operations Page 53 of 11 details for each broker e g Name Address Products handled by broker Limits Brokerage rate Settlement instructions PAN amp 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 amp Currency wise 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 Traded price amp Currency Exchange rate Reporting value in foreign currency Reporting value in INR Interest rate Interest frequency Interest type fixed floating for MM transactions 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 amp principal redemptions dates Interest amount Total consideration Mode of delivery Brokerage amount etc System should alert dealer where tolerance limits are breached 10 2 The system should be a
129. ons in the following format Yes No Details of Documents Submitted e Name of the project e Name of organization e Location e No of users e Entities involved e Scope of the project e Exact role of the Bidder e Present Status of the project Date Place Signature of Authorized Signatory Name of Signatory Designation Seal of Company Web based application for Forex operations Page 32 of 11 PART Ill TECHNICAL REQUIREMENTS ANNEXURE V Technical Feature and Technology Architecture The bidder should mention remarks response under Response Remarks of Bidder The proposed system should have the following technology features WEB BASED APPLICATION FOR FOREX OPERATIONS SOLUTION FOR PUNJAB NATIONAL BANK S No Requirement Response Remarks of Bidder System Design Philosophy Concepts Architecture Ability to segregate the data logically by functional group department or business unit Suitable for functional groups to easily tailor the product to suit their needs What is your general integration strategy with third party packages and customer proprietary products The proposed system should provide for integration tools for both synchronous and asynchronous integration The proposed system should have been buit on Pure Internet Architecture technology Describe in detail the architec
130. parate SLA will be executed between Bank and selected bidder The onsite resource must be having an experience of atleast 2 years in the same product The bidder shall also ensure the requisite knowledge transfer to the identified staff of the Bank for maintenance of the system subsequent to the initial on site support period of 12 months 5 ANNUAL TECHNICAL SUPPORT ATS will start after completion of warranty period ATS should cover trouble shooting removing bugs errors All upgrades updates new version releases will be provided during ATS period at no extra cost to bank Bidders will ensure smooth functioning of the software package during ATS through off site onsite as per requirement of the bank support on 24 7 basis The shortlisted bidder should support for lifetime after completion of the warranty Lifetime means time up to which bank will be using the application Implementation charges Onsite Offsite for ATS related activity should be free of cost 6 TRAINING The bidder has to provide the training free of cost at Mumbai Training should be categorized into a System Administration and Maintenance Training It should include training in system administration configuration operation and management of application software Trouble shooting interpretation of error message the linkage between various programs and modules of application software must be integral to this training The number of this type of users to be trai
131. r without any obligation to inform the affected bidder or bidders about the grounds for the bank s action The bank reserves the right to accept or reject any technology proposed by the bidder The bank reserves the right to select more than one bidder keeping in view its large requirements 12 MODIFICATION AND WITHDRAWAL Bids once submitted will be treated as final and no further correspondence will be entertained on this No bid will allowed to be modified after the submission of bid No bidder shall be allowed to withdraw the bid if bidder happens to be successful bidder 13 REVELATION OF PRICES The prices in any form or by any reasons should not be disclosed in the technical or other parts of the bid except in the commercial bid Failure to do so will make the bid liable to be rejected 14 TERMS AND CONDITIONS OF THE BIDDING FIRMS The bidding firms are not allowed to impose their own terms and conditions to the bid and if submitted will not be considered as forming part of their bids The bidders are advised to clearly specify the deviations in case terms and conditions of the contract applicable to this invitation of tender are not acceptable to them Web based application for Forex operations Page 15 of 11 15 LOCAL CONDITIONS The bidder must acquaint himself with the local conditions and factors which may have any effect on the performance of the contract and or the cost 16 CLARIFICATIONS OF BIDS To ass
132. report errors and exceptions Report Coverage 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 4 3 The system should be able to support interest payments in advance and arrears for Interest Rate Swaps 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 4 5 Calculation of amortization on HTM categories at weighted average method or FIFO as per Bank s policy 4 6 The system should have the ability to show changes due to exchange rate movements separate from changes in market value 4 7 Frequency of reports can be Web based application for Forex operations Page 103 of 11 oO Daily Weekly Fortnightly Monthly Quarterly Half Yearly Annual For any given period Web based application for Forex operations 5 Report Formats 8 5 1 Daily report containing Resources position 2 5 2 Daily Front Office Transaction Report 2 Dealer wise Sanctioning authority wise 5 3 Scheduling of reports 4 5 3 1 The system should allow for generation of 2 reports on real time basis 5 3 2 Pre defined reports should be generated 2 with a minimum of user interference
133. rganizational levels and relationships The hierarchies supported by the system should include branches subsidiaries agents and within each hierarchy the system should also support multiple access levels for different dealers back office mid office other departments and different levels of management 1 4 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 amp L closing 1 5 Schemes amp 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 Bonds of USA c Derivative Products Swaps Options Macroeconomic derivatives Mainly inflation bonds swaps and option d Commodities including Gold Silver loans amp gold silver import on consignment basis etc e Credit CDS credit options baskets etc CDOs CLN EDIT CHECK 2 1 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 DATE PROCESSING 3 1 3 2
134. rom the take profit or stop loss notification 29 3 The system should be able to compute the exact stop loss and take profit based on pre defined percentages 29 4 The system should be able to give notifications in case of breach of stop loss take profit limits 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 29 6 The system should be able to retrieve static data from Web based application for Forex operations Page 89 of 11 masters at the time of deal entry 29 7 The system should be able to highlight instances of 2 short sale amp covered deals 29 8 The system should be able to stop entry of short sale 2 of securities where such functionality is defined by the user 29 9 The system should allow for the following different 2 types of deal capture 29 10 Manual deal entry for deals done through brokers 2 and or wherever capturing possible electronically upload the details 29 11 Automatic deal entry for deals done through dealing 2 Systems 29 12 Facility option to put through reverse deals in case 2 of cancellations on the same day 31 LIMITS TO MARKET OPERATIONS 26 31 1 The system should be able to set and monitor limits 2 based on the following parameters 31 1 1 Counter party limits 2 31 1 2 I
135. rrency wise positions at any point of time The system should be able to calculate underlying floating interest amount applicable in case of a floating rate Repo transaction System should be able to capture Nostro Funds Transfer 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 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 CALCULATIONS AND COMPUTATIONS The system should be able to calculate MTM across all currencies The system should be able to store historical revaluations for each transaction record The system should be able to store historical Forex rates for all currencies The system should be able to compute interest and principal repayments for foreign currency loans and support the Interest Reset clause The system should be able t
136. rt a wide range of forex option payoffs with advance model Web based application for Forex operations Page 96 of 11 10 27 Facility to support Indian Overseas Fx listed option 10 28 Facility to build linear combined structure products with stripping and solver feature 10 29 Facility to handle Fx option related market data especially Fx smile interpolation 10 30 Facility to monitor P amp L position Greeks and other unique greeks natively and dynamically 10 31 Facility to manage fx option relevant events like exercise and barrier knock for bulk number of options 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 10 33 Facility to handle commodity in native module instead of using other asset class proxies 10 34 Facility to manage different product location quality units etc and aggregate convert position accordingly 10 35 a Facility to manage full set of commodity listed and OTC products 10 35 b Commodity trading 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 10 37 Facility to handle various equity products listed and unlisted equities mutual funds debt equity liquid schemes
137. s RFP Document Each Bidder should conduct their own investigations and analysis and should check the accuracy reliability and completeness of the information in this RFP Document and wherever necessary obtain independent advice from appropriate sources The Bank Representatives their employees and advisors make no representation or warranty and shall incur no liability under any law statute rules or regulations as to the accuracy reliability or completeness of the RFP Document The Bank Representatives may in their absolute discretion but without being under any obligation to do so update amend or supplement the information in this RFP Document Web based application for Forex operations Page 2 of 11 oO Contents Sl Contents of the RFP Document Page No No 1 General Tender Details 4 2 Introduction 5 Instructions to Bidders 3 BACKGROUND AND PURPOSE OF THE PROJECT 6 8 4 Eligibility Criteria 8 9 5 Requirements Scope of Work 9 12 6 Other instructions 13 19 7 CONTENT OF DOCUMENTS TO BE SUBMITTED 20 8 TERMS AND CONDITIONS Annexure 21 27 9 Response of Eligibility Criteria Annexure Il 28 29 10 PART I Bidder Information Annexure III 30 31 11 PART Il Product Information Annexure IV 32 33 12 PART Ill Technical Feature and Technology Architecture 34 40 TECHNICAL REQUIREMENTS Annexure V 13
138. se register 2 10 18 Interbank maturity register 2 10 19 Interbank deal register 2 10 20 Repo deal register 2 10 21 Day Book 2 10 22 Transaction Scroll 2 10 23 Any other accounting reports based on the 2 Banks requirements 10 24 Performance measurement Dealer wise 2 10 25 Product profitability report including money 2 market Swaps 10 26 Date wise Instrument wise Profit During a 2 Period 10 27 Portfoliowise Performance measurement 2 report at user defined frequency or range of period 10 28 Product specific interest rate forecasting 2 10 29 Product wise Portfolio wise Statistical 2 analysis of past performance Quarterly Half yearly Annual at least 3 corresponding periods 10 30 Daily return on Call Notice Term money 2 Repo transactions CBLO 10 31 Average outstanding and yield security 2 sector portfolio wise 10 32 Balance sheet value of all securities based 2 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 2 Returns 10 34 Position reports Category wise as on 2 any date comparison between three given dates 10 35 Entity wise exposure to a company 2 Scrip wise portfolio wise position as on any date 10 36 Balance Report for any given day 2 Web based application for Forex operations Page 105 of 11 oo
139. ssuer limits 2 31 1 3 Currency limits 2 31 1 4 Dealer limits 2 31 1 5 Broker limits only empanelled brokers to be 2 permitted 31 1 6 Scrip wise limits 2 31 1 7 Internal limits 2 31 1 8 Rating limits 2 31 1 9 Instrument wise limits 2 31 1 1 Stop loss limits 2 0 31 1 1 Take profit limits 2 1 31 2 The system should be able to generate alerts in cases 2 where limits are about to be breached based on certain user defined limit amount trigger amount 31 3 System should give an option to front office users if 2 they would like to continue with the deal or abort it 32 VALUATION AMORTIZATION amp NPI Non 4 Performing Investment Automatic identification of NPI based on user defined 2 rules Posting of partial repayment received in matured 2 accounts or NPI accounts after due date 33 Ability to maintain versions of every business 2 objects trade payments counterparties etc in the system throughout their entire life cycle Ability to fix original trade number with the version 2 Web based application for Forex operations Page 90 of 11 number incremented each time market events are performed 34 Ability to specify how strong or weak the links 6 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 rep
140. stem administrator only 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 The system should be able to provide a consistent and user friendly Graphical User interface short cuts smart tags and other productivity features 4 3 The system should be able to provide online and offline context sensitive help CURRENCY TRANSLATION 5 1 The system should be able to convert between currencies without manually Web based application for Forex operations Page 43 of 11 converting to the home currency as an interim step in the process 5 2 The system should be able to define 2 home currency and wash currency 6 PRODUCT SET UP 4 6 1 The system should allow for the creation 2 of products and sub products 6 2 The system should allow for creation of 2 product codes 7 PRODUCT STRUCTURING FUND 10 BASED PRODUCTS 7 1 Set up of transaction types and 2 associated codes which will be allowed 7 2 Set up of processing rules for each 2 transaction type like accounting for Accrued Interest type of transactions allowed 7 3 Band set up minimum and maximum 2 days on terms and conditions within which the user must operate 7 4 Rules for workflow 2 7 5 Rules for accounting based on transaction 2 type
141. tfolio should be 2 available online clearly specifying exposure limits vis a vis actual maintenance 13 10 Threshold limits 90 of the maximum limits 2 should be fixed and made available online 13 11 Report should be able to generate Market 2 Risk amp Credit Risk charges Portfolio wise for the purpose of RAROC 13 12 Counter party exposure 2 13 13 Foreign Currency position currency 2 wise and summary 13 14 Sources and uses of foreign Currency funds 2 13 15 Borrowing maturity pattern Lending currency 2 wise 13 16 Borrowing maturity pattern Borrowing 2 currency wise 13 17 Currency wise gap scan 2 13 18 Maturity mismatch currency wise and USD 2 equivalent 13 19 Summary of daily gaps position and cash 2 balances 13 20 Daily reporting of forex operation 2 13 21 IC 5 including net open position of foreign 2 Currency 13 22 Credit risk concentration in 2 derivatives forex contracts Top 10 customers 13 23 Credit risk concentration in 2 derivatives forex contracts Top 10 inter bank 13 24 Bucket wise position of Borrowings in 2 Foreign Currency 13 25 Capital assessment under Basel Basel II 2 13 26 Qty Monthly Forex Review Forex Turnover 2 13 27 CAM Capital Adequacy Monitoring 2 Statement 13 28 MAP currency wise amp consolidated 2 13 29 SIR currency wise amp consolidated 2 13 30 STAT 5 2 13 31 BAL Statement 2 13 32 Cost and yield statements 2 13 33 Statement of distressed assets 2 Web bas
142. tion Web based application for Forex operations Page 11 of 11 3 19 The bidder should ensure full time availability of minimum one Subject Matter Expert onsite from Selected bidder PSP for the period of Implementation Subject Matter Expert will bring in his experience in the iterative process of framing business rules and to bringing process changes review all project deliverables 3 20 The bidder should provide details of the Hardware amp Software platform required for deploying the proposed solution as per Annexure Xl 3 21 Solution should have clear separation between design and deployment activities 3 22 The Bidder has to provide complete document on Business continuity plan BCP and Disaster Recovery Plan DRP of the proposed solution 3 23 The bidder should provide a project implementation plan indicating milestones and deliverables Initially deliverables will be Design document technical architecture of the solution and action plan for implementation 3 24 The Bidder should provide User Manual of the application software in hard and soft copy along with implementation of the software 3 25 The bidder shall arrange for training as defined in Clause 6 Training of the RFP 3 26 The proposed solution should maintain history of all additions modifications deletions and parameter changes etc as Audit Trails 3 27 Ability to rapidly generate ad hoc reports with an easy to use report writing
143. ts register 13 5 Due dates for Crystallization reversals 14 1 SYSTEM SHOULD ALLOW USERS TO DEFINE 14 1 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 1 2 14 1 3 Merchant forward contract cancellation charges as 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 per the exchange rate given by the dealer must be Web based application for Forex operations Page 73 of 11 recovered from paid to the customer in INR by system generated entries 14 1 4 System driven Early Late realization charges 14 1 5 FCNRB Foreign Currency Non Resident B Deposit 14 1 6 RFC amp RFCTD Resident Foreign Currency Deposit 14 1 7 FCL Foreign Currency Loan 14 1 8 FC BORROWINGS 14 1
144. tstanding suspense register 2 12 64 Crystalized bills report 2 12 65 Bills to be crystalized 2 13 REGULATORY REPORTING 104 13 1 Profit and Loss statements 2 13 2 Realized Profit and loss 2 13 3 Projected Interest Accrual based on current 2 portfolio 13 4 Report on overdue redemption on any date 2 category wise amp 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 half year 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 13 5 Watch Report If VaR is increasing over a 2 period 13 6 Brokerage Paid During a Period Broker wise 2 13 7 Brokerage Exposure Statement Broker wise 2 13 8 Only empanelled brokers should be 2 marked active Broker wise turnover amount and percentage vis a vis total brokers turn Web based application for Forex operations Page 109 of 11 oo over for the financial year should also be provided online 13 9 Position of investment por
145. ture of Authorized Signatory Name of Signatory Designation Seal of Company Web based application for Forex operations Page 28 of 11 PART Bidder Information Please provide following information about the Company Attach separate sheet if ANNEXURE Ill required S No Information Particulars Response 1 Company Name 2 Date of Incorporation 3 Name and Address of authorized person Company Secretary Please enclose the copy of company resolution 4 Contact Person s Phone Fax E mail Website 5 Provide the range of services options Yes No Comments if option is offered by you covering service No description and different schemes available for Customization Implementation Support Warranty Post implementation Ongoing Support for o ATS o Helpdesk o Training o Documentation o Others specify 6 Any pending or past litigation within Yes No Comments if option is Yes three years If yes please give details Also mention the details of claims and complaints received in the last three years About the Company Software that are sold licensed by the company 7 Please mention turnover for last three Year Turnover Profit L financial years and include the copies of Rs in Cr oss Balance Sheet in support of it Rs in lacs 2011 12 2012 13 2013 14 Web based application for Forex operati
146. ture of the system The proposed application should support Unicode and support multiple languages using once instance of the package database Support open standards for integration like web services XML etc Is there any use of any proprietary software for design customization deployment etc Please specify the detail Does the application provide uniform single run time architecture OR are there multiple run time architecture Please specify all of them Web based application for Forex operations Page 33 of 11 PC Client User Interface Fat or Thin Client Describe software setup Detail the approximate time required to install a client PC If web based client is there any software on the client required Is the entire application on a web client with no client software on the PC If partial specify what percentage of the functionality is supported on the web client architecture What web servers are supported Do we have to buy the web server software separately or does the bidder provide it The proposed architecture should support web browsers like Internet Explorer Netscape Navigator etc What web browsers are supported Please also indicate the versions best suited for the proposed architecture What programming languages are used i e HTML Java script XML etc Are Active X Controls or Java applets used Provide scr
147. tween 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 Transaction Management 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 6 4 Ability to generate statement of outstanding transactions along with contract details for counterparty on an ad hoc basis 6 5 Ability t
148. uation will be only eligible to participate in the next stage of the bidding process i e commercial evaluation The commercial bids for only those bidders will be opened who have qualified on the basis of technical evaluation and reviewed to determine whether the commercial bids are substantially responsive Commercial bids that are not substantially responsive are liable to be disqualified at PNB s discretion The L1 price for the awarded contract will be decided as per reverse auction 28 VERIFICATION OF REFERENCE INSTALLATIONS PNB may if deemed necessary conduct verification of reference installation to satisfy themselves on the performance of the equipment services offered with reference to their requirements 29 CANCELLATION OF BID BIDDING PROCESS PNB reserves the right to accept or reject any bid and annul the bidding process and reject all bids at any time prior to award of contract without thereby incurring any liability Web based application for Forex operations Page 18 of 11 to the affected bidder or bidders or any obligation to inform the affected bidder or bidders of the ground for its action 30 REVERSE AUCTION Bank may hold Reverse Auction in the event of 2 or more bidders as technically eligible The procedure for the same is available on our e procurement website It will be mandatory for all the bidders to quote rates of all optional components that may be required 31 PRICE VARIATION FACTOR
149. unting standard at individual product level 11 3 It should be possible to use either 2 FEDAI Rate or Market Rate for AS 11 enabled transactions 11 4 The system should be parametric for 2 enabling IAS39 accounting standard for Hedge accounting 12 CLEARING AGENCY 4 12 1 The system should support settlement of 2 Interbank Forex deals through CCIL 12 2 The system should support settlement of 2 Interbank Forex deals through CLS 13 REPORTING PLATFORM 4 13 1 Rupee Derivatives reporting on CCIL 2 13 2 OTC transactions through CCIL as 2 per the new directives of CCIL RBI 14 Reporting platform for overseas branches 10 should be as per the local regulations of respective country 15 ACCESSIBILITY AVAILABILITY amp TOOLS 15 1 1 The system should allow for transaction 2 entry viewing of positions and MIS reports 15 1 2 Ability to process and report on data in an 2 online real time mode 15 2 Maintenance of trade history 4 15 2 1 Ability to maintain online history of trade 2 information for all trades 15 2 2 All trades migrated from legacy systems 2 to the new one should also be maintained 15 3 Multi entity processing 10 15 3 1 The system should be able to handle 4 multiple entities that Includes global domestic international branches subsidiaries etc Web based application for Forex operations Page 45 of 11 15 3 2 The system should be able to create physical segregation of
150. ve chatting facility for quoting and confirming special rates with branches 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 11 12 The dealing system should be capable of seamless integration with Treasury front office amp 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 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 12 DECISION SUPPORT TOOLS 44 12 1 Cross Currency spot amp forward calculation Overnight Indexed Swaps Interest Rate Swaps Cross Currency Swaps Web based application for Forex operations Page 55 of 11 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 amp 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 dim

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