Primary Agricultural Credit Societies (PACS):
A MoU was signed between the Ministry of Cooperation, Ministry of Electronics and Information Technology, NABARD and CSC e-Governance Services India Limited, for PACS to soon start providing services like the one offered by Common Service Centres (CSC).
- PACS are the soul of cooperatives and will enable ‘Sahkar Se Samridhi’for rural development
- Making PACS multipurpose as providers of about 20 services will increase employment opportunities in rural areas.
- 50 per cent of the country’s population is associated with cooperatives in one way or the other
- PACS is a village-level institution that works directly with rural residents.
- It encourages agriculturists to save, accepts deposits from them, makes loans to deserving borrowers, and collects repayments.
- There are around 63,000 Primary Agricultural Credit Societies.
- The recent Budget (2023-24) has made a provision to make 2 lakh PACS in the next 5 years and create a multi-purpose PACS in every Panchayat.
- PACS are the lowest unit in a three-tier structure (see image below)
- PACS are outside the purview of the Banking Regulation Act, 1949, and therefore not regulated by RBI.