Expression of Interest (EoI) For Banks / Financial Inclusion partners to engage CSCs/ CHOiCE Agents as Business Correspondent(s) in the

State of Chhattisgarh

CHhattisgarh infotech & biotech Promotion Society (CHiPS) RDA Building, Room No.- D/126-132, 02nd floor, Infront of Tehsil office, Raipur, Chhattisgarh 492001 Fax:- 0771-4066205, Ph No. 0771-4066277 E-mail: pro-chips@nic.in Website: www.chips.gov.in

CHiPS invites Expression of Interest from Banks/ Financial Inclusion Partner /Business Correspondents Entity to make CSCs /Choice Agents as a Business Correspondents (BCs) or Business Correspondent Agent in state of Chhattisgarh. Proposal should include complete Business Correspondent Activities as per RBI guidelines.

EoI Details 1 2 . 3 Issuing Date of EoI EoI No. 06/06/2011 01/CEO/CHiPS/2011/CSC/BC-EoI

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Last date and time for 27/06/2011 obtaining/ submission 1400 HRS of EoI Date and Time of EoI 27/06/2011 1500 HRS Opening Place of opening of EoI Office of CHiPS, RDA Building, Room No.- D/126-132 2nd Floor, In front of Raipur Tehsil office Raipur 492001 Address for As above Tel: 0771-4066277 Fax 0771-4066205 communication Contact to Bidders Interested bidders are requested to send the email to pro-chips@nic.in containing following information, so that in case of any clarification same may be issued to them Name of company, contact person, Mailing address with Pin Code, Telephone No., Fax No., email address, Mobile No. etc.

Note: EoI will b e opened in presence of the bidders representative who wants to attend

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About Chhattisgarh Chhattisgarh, a 21st century State, came into being on November 1, 2000. Larger than Tamil Nadu, it is just the right size, and is also fortunate to have a low population density. Good Governance is the highest priority in this Fast Track State. There is both policy stability as well as political stability. Government has been kept small and the State is in excellent fiscal health. Chhattisgarh is truly a land of opportunities. With all major minerals including diamonds in abundance, it is the richest State in mineral resources. There are mega industries in Steel, Aluminum and Cement. Chhattisgarh contributes substantially to the Human Resources of India. Several hundred students from the State qualify for admissions in prestigious academic institutions every year. Bhilai, the knowledge capital of the State, alone sends over 50 students to the elite Indian Institutes of Technology every year. Its large power surplus is attracting power-intensive industries, and the State is poised to become the power-hub of the nation. Its central location helps easy power transmission to any part of the country. 12% of India's forests are in Chhattisgarh, and 44% of the State's land is under forests. Identified as one of the richest bio-diversity habitats, the Green State of Chhattisgarh has the densest forests in India, rich wildlife, and above all, over 200 non-timber forest produces, with tremendous potential for value addition. One third of Chhattisgarh's population is of tribes, mostly in the thickly forested areas in the North and South. The central plains of Chhattisgarh are known as the Rice Bowl of Central India. Female literacy has doubled in the last decade, and male literacy is higher than India's average. Gender ratio is next only to Kerala. Bastar is known the world over for its unique and distinctive tribal heritage. The Bastar Dashera is the traditional celebration of the gaiety of tribals. Many virgin, unexplored tourism destinations are there is all the parts of Chhattisgarh.

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About CHiPS CHiPS, a Registered Society promoted by the Government of Chhattisgarh, is the nodal agency and prime mover for propelling IT growth and implementation of IT plans in the State. The Honble Chief Minister heads the High Powered Governing Council of CHiPS. It includes Minister for Finance & Commercial Taxes, Minister for Commerce & Industry (including IT), Minister for Education, Minister for Panchayat & Rural Development, Chief Secretary, a representative from the Ministry of Information Technology in Government of India and eminent persons from IT industry. CHiPS is involved as State Designated Agency (SDA) in NeGP MMPs

implementation of some mega IT Projects like CHOiCE, e-Gram Suraj, Gyan Vinimay (e-classroom), e-Procurement, SWAN, Bhuiyan, GIS and CSCs. A professional approach is being adopted for the implementation of IT Projects using the services of e-governance experts and consultants from corporate and academia.

About this Expression of Interest (EoI)

CHiPS is SDA for implementing 3000+ CSCs /CHOiCE Centers in state of Chhattisgarh. The main objective of this expression is a good potential for financial inclusion in rural areas which in turn will generate income opportunities for the CSCs and also benefit rural masses. The EoI is being invited for providing Financial Services in rural area of Chhattisgarh through Bank or Financial Inclusion Partner or Business Correspondent Entity.

CHiPS has taken an initiative on behalf of CSCs to invite Banks or their Financial Inclusion Partners and scope of work of CHiPS is limited to Finalization of Suitable Bank/ Financial Inclusion partner for CSCs as Business Correspondent. CHiPS will recommend to CSCs a suitable Bank/ Financial Inclusion partner with final proposal and CSCs are open to choose services on their own interest. Banks are open on their comfort level to take decision about inclusion of individual CSCs as Business Correspondents as per Bank/RBI Guideline.
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Scope of Work:The BC Model should provide complete solution as per the RBI Guideline Important Data to be considered for the project Important Data Total Population (2001) Population Density (persons per sq. km) (2001) Male Population (%) (2001) Estimated Urban Population (%) (2001) Sex Ratio (females per 1000 males) (2001) Forest Area Number of Districts Literacy Rate (total) (%) (2001) Female Literacy rate (%) (2001) Main workers to total population (%) (2001) Total CSC/CHOiCE Centre Proposed number of CSCs/ CHOiCE Centres

21 Million (7th in India) 154 (National average 350) with 4% of national area, accounts for only 2% of the population4 50.27 20.09 990 More Then 50% 18 64.7 51.9 26.55 3500 Nos. One in every 6 village 20,000 nos. (One in every village)

Minimum Infrastructure available in CSCs/ CHOiCE centers Desktop Printer UPS Scanner Internet Connection Security Devices 1 nos. in each center 1 nos. in each center 1 nos. in each center 1 nos. in each center Available at all centre Biometric Identification Device PKI Infrastructure with Digital Signature
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Proposed Services to be covered as per RBI Guideline in Business Correspondents Model:Reference 1. http://rbidocs.rbi.org.in/rdocs/notification/PDFs/BCD2042010R.pdf 2. http://rbidocs.rbi.org.in/rdocs/Notification/PDFs/68417.pdf 3. Please refer other RBI guidelines for BC model. 1) Identification of potential customers and fitment of activities. 2) Collection and preliminary processing of loan applications / account opening, forms for deposits including verification of primary information / data. 3) Filling of loan applications / account opening forms including nomination clause and submission to the Bank. 4) Assisting in post-sanction monitoring and follow-up for recovery (only after complying with RBI instructions on recovery agents). 5) Promoting and nurturing Self Help Groups (SHGs) / Joint Liability Groups (JLGs), wherever relevant. 6) Creating awareness about savings and other products and education and advice on managing money and debt counseling. 7) Disbursal of small value credit 8) Recovery of principal / collection of interest 9) Collection of small value deposits 10) Sale of micro insurance/ mutual fund products/ pension products/ other third party products 11) Receipt and delivery of small value remittances/cash/ other payment instruments. 12) For recovery only after complying with RBI instructions on recovery agents. 13) Any other service on behalf of the Bank, duly authorized by the appropriate authority.

Note: - Any other services as per RBI Business Correspondents Model.

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Selection Procedure for Bank:1. Bank Complying with RBI Guideline under BC Model. 2. Presence in Chhattisgarh. 3. Minimum Investment Proposal for CSCs /CHOiCE Agents. Selection Procedure for Financial Inclusion Bank Correspondent Entity:Partner or Business

1. Bidder should be a registered company in India under Indian laws and should have been in operation for a period of at least three years as on date of EoI. 2. Minimum average turnover out of Indian operations should be not less than Rs. 20 crores in the last three financial year as per audited financial statements. 3. Bidder should have made net profit in last three financial years. 4. Should have a net worth of Rs.50 crores in the last financial year. Provide Audited Financial statements for the last three (3) financial years. 5. Financial Inclusion Partner should have implemented at least 200 operational BCs in 2 States. List of All BCs to be provided by Firm, authorized by respective Bank. 6. Banks Associated with the Financial Inclusion Partner should be Present in Chhattisgarh. 7. Minimum Investment Proposal for CSCs /Choice Agents Notes: 1. Appropriate documentary proofs with necessary details should be attached for all above requirements 2. Authorization Letter from the concerned Bank confirming Financial Inclusion Partner authorized to submit Proposal for this EoI.

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Content of Proposal 1. Bank Business Policy for BC Model 2. Financial services provided through BC Model 3. List of District wise Locations Intended for Business through BC Model 4. Implementation Schedule for interested districts in Chhattisgarh 5. Work flow system for BC Model 6. Role and responsibility of all Stake holders. 7. Minimum eligibility requirements for individual CSCs /Choice Agents as Business Correspondent. 8. End to end solution including Technical, Operational, Functional, Maintenance, Service provisioning, requirements to operate Business Correspondent Model. 9. List of Branch operational in Chhattisgarh with Core Banking Network. 10. Minimum Investment Proposal for CSCs /Choice Agents as Business Correspondent (BC). 11. Remuneration /incentive structure financial services wise for Individual CSCs /Choice Agents as Business Correspondent. 12. Important information related to this project

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General Terms and Condition:1. Banks / Financial Inclusion Partners are free to take decision regarding engagement of any individual operating CSCs / Choice Agent. 2. Banks / Financial Inclusion Partners must submit its proposal for one or more districts to engage all CSCs/ Choice Agent operating in that district as Business Correspondent. 3. CHiPS may recommend one or more than one Bank/ Financial Inclusion Partner to the CSCs / Choice Agent. 4. CSCs /Choice Agents are open to engage with any of the recommended Bank / Financial Inclusion Partner with their own interest. 5. CHiPS / Government of Chhattisgarh will not be liable to bear any cost incurred in this project. 6. Banks / Financial Inclusion Partners should submit monthly MIS report to CHiPS related with CSCs /Choice Agents Operation including but not limited to Remuneration, Operational, services etc. 7. In case a Bank and any of its Financial Inclusion Partner separately express interest in this EoI, then the proposal of the Bank will be taken into considered.

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To, The Chief Executive Officer CHhattisgarh infotech and Biotech Promotion Society (CHiPS) RDA Building, Room No. - D/126-132 2nd floor, Infront of Tehsil office Rapur CG 492001 Fax:- 0771-4066205, 0771-4066277 Ref: -Our Proposal for Expression of Interest (EoI) for CSCS/CHOiCE Agents as Business Correspondent(s) in Chhattisgarh State We submit our Proposal herewith. We understand that You are not bound to accept all or any Proposal received by you, and you may reject all or any Proposal. It is totally CHiPS discretion to select the proposal on the basis of responses submitted by us and CHiPS shall not be liable in any court of Justice. CHiPS / Government of Chhattisgarh will not be liable to bear any cost incurred in this project. If our proposal is accepted, we are r e s p o ns i b l e to im p lem e nt r eco m m e nd ed ar ea t o i n d u e co u r se o f t im e m e nt io n ed i n o u r p rop o sal. CHiPS may recommend one or more than one Participant to the CSCs / CHOiCE Agent without assigning any reason or giving any explanation whatsoever. We understand that mere participation in EoI by us does not imply that we shall be selected in further Evaluation processes. Dated at this day of 2011.

Yours faithfully For Signature Name

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