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Primary Agricultural Credit Societies

Primary Agricultural Credit Societies:

Cabinet approves digitisation of 63,000 Primary Agricultural Credit Societies.

  • PACS: It 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.
  • PACS are the lowest unit in a three-tier structure: The other two tiers — State Cooperative Banks (StCB) and District Central Cooperative Banks (DCCB) — have already been automated by the NABARD and brought on the Common Banking Software (CBS).


  • Computerisation will bring transparency and link all credit societies to a common accounting system
  • Each PACS will get around ₹4 lakh to upgrade its capacity and even old accounting records will be digitised and linked to cloud-based software.
  • Service delivery: Direct Benefit Transfer (DBT), Interest Subvention Scheme (ISS), Crop Insurance Scheme (PMFBY), and inputs like fertilizers and seeds
  • A government statement said that PACS account for 41% (3.01 crore farmers) of the Kisan Credit Card (KCC) loans given by all entities in the country