Economics
In News: The Cabinet Committee on Economic Affairs approved computerisation of Primary Agricultural Credit Societies (PACS) with the aim of increasing efficiency of PACS, bringing transparency and accountability in their operations.
- This project proposes computerization of about 63,000 functional PACS over a period of five years with a total budget outlay of Rs 2,516 crore with the central government’s share of Rs 1,528 crore.
Primary Agricultural Cooperative credit societies (PACS)
- The PACS constitute the lowest tier of the three-tier short-term cooperative credit (STCC) in India comprising of nearly 13 crore farmers as its members.
- Through computerization PACS will become nodal service delivery point for interest subvention scheme (ISS), PM Fasal Beema Yojana, Direct Benefit Transfer and provision of inputs like fertilisers, seeds etc.
- It will ensure speedy disposal of loans, lower transition cost, faster audit and reduction in imbalances in payments and accounting with State Cooperative Banks (SCBs) and District Central Cooperative Banks (DCBs)
- PACS account for 41% of the Kisan Credit Card (KCC) loans given by all entities in the country and 95 % of these KCC loans through PACS are to the small and marginal farmers.
- The other two tiers viz. SCBs and DCCBs have already been automated by the NABARD and brought on Common Banking Software (CBS).
Source: Indian Express
