A simple introduction to this answer can revolve around a general statement about Primary Agricultural Credit Societies.

Primary Agricultural Credit Societies (PACS) are village-level cooperative credit societies that serve as the last link in a three-tier cooperative credit structure headed by the State Cooperative Banks (SCB) at the state level.

The credit from the Scheduled Commercial Banks is transferred to the district central cooperative banks, or District Co-operative Central Banks (DCCBs), that operate at the district level. The DCCBs work with PACS, which deals directly with farmers.

Body

You may incorporate some of the following points in the body of your answer:

Role and contribution of Primary Agricultural Credit Societies

• They are involved in short-term lending — or what is known as crop loans. At the start of the cropping cycle, farmers avail credit to finance their requirement of seeds, fertilisers, etc.
• Banks extend this credit at 7 per cent interest, of which 3 per cent is subsidised by the Centre, and 2 per cent by the state government. Effectively, farmers avail the crop loans at 2 per cent interest only.
• Since these are cooperative bodies, individual farmers are members of the PACS, and office-bearers are elected from within them. A village can have multiple PACS.
• The attraction of the PACS lies in the last mile connectivity they offer. For farmers, timely access to capital is necessary at the start of their agricultural activities.
• PACS have the capacity to extend credit with minimal paperwork within a short time.
• PACS can also be employed as drone entrepreneurs for spraying fertilisers and pesticides.
• A Memorandum of Understanding (MoU) of this effect was signed between the Ministry of Cooperation, Ministry of Electronics and Information Technology, NABARD and CSC e-Governance Services India Limited for providing services offered by Common Service Centres (CSC).
• PACS are the soul of cooperatives and will increase employment opportunities in rural areas.
• It will ensure speedy disposal of loans, lower transition cost, faster audit and reduction in imbalances in payments and accounting with State Cooperative Banks and District Central Cooperative Banks.