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Primary agricultural credit societies (PACS)

  • IASbaba
  • July 1, 2022
  • 0
Economics
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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

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