Why does everyone fight so much smh :/
Anyway, heres the thing - first of all, pen values depend on what type of RHA you are using, and the difference is quite noticeable. 540 at 2000 wont go beyond 650 at 500m, even if we take the pen value to be reliable and not bumped up for export. The thing to keep in mind is that this is passive protection, i.e. without ERA. With ERA, it should easily prevent perforation of the armour, up to rounds capable of around ~800-900 RHA pen, like chinese MBT rounds.
Secondly, its a pretty weird statement to say that "himalayas" will make the fights close distance. If anything, they will increase the range of engagement, especially in areas like Ladakh where the lack of vegetation & construction and the relatively cold environment will make tanks easily visible thermally.
Lastly, RFI is not the end of the deal. RFI is a dream list that is released for designers to try and meet. RFP is based on what is actually possible after seeing the designs.