The Primary Agricultural Credit Societies (PACS) are village-level cooperative credit societies that play a crucial role in providing credit to the farmers in rural areas. They act as the last link in the three-tier cooperative credit structure, which is headed by the State Cooperative Bank (SCB). The Union Budget 202324 has allocated a significant amount of funds towards the computerization of 63,000 PACS over the next five years, which is expected to bring a major boost to the transparency and accountability of their operations.
Role of PACS in the Three-Tier Cooperative Credit Structure
The three-tier cooperative credit structure is designed to ensure that credit reaches the farmers in rural areas through a well-structured and efficient system. The credit from the SCB is transferred to the district central cooperative banks (DCCBs), which then transfer the credit to the PACS. This ensures that credit is easily accessible to farmers in rural areas, who may not have access to traditional banking services.
PACS play a crucial role in this three-tier structure, as they are the ones that interact directly with the farmers and provide them with credit for various agricultural and non-agricultural activities. They also provide a range of other services, such as savings and deposit facilities, insurance, and other financial services.
Computerization of PACS
The Union Budget 202324 has allocated Rs. 2,516 crore for the computerization of 63,000 PACS over the next five years. This is a significant allocation, and it is expected to bring major benefits to the PACS. The computerization of PACS is expected to improve the transparency and accountability of their operations, as well as the diversification of their activities.
One of the major benefits of computerization is that it will help to streamline the operations of PACS and make them more efficient. This will help to reduce the administrative burden on the staff, and allow them to focus on providing better services to the farmers. It will also help to improve the accuracy and speed of transactions, making it easier for farmers to access credit and other services.
