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