Primary Agricultural Credit Societies (PACS).

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 Bima 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 (DCCBs)
• 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).