Primary agricultural credit societies (PACS)
reference Hindu businessline
Context:
The Union Government is all set to bring model by-laws to govern all 60,000 Primary agricultural credit societies (PACS) across the Country.
The newly formed Ministry of Cooperation is formulating a national-level policy for cooperatives.
Primary agricultural credit stores (PACS)
PACS are the ground-level cooperative credit institutions which provide short-term and mid-term agricultural loans to farmers for various agricultural and farming activities. they work at the grassroots Panchayat and village levels
Features
- PACS is the building block of the century-old Cooperative banking system in India
- It is designed to be a village-level credit society in which farmers brought to share capital, and deposits and provided loans to each other
- There will be elected members, each member will have one vote, they maintain transparency, these PACS makes for the most robust 'Public Policy for credit'
No Commercial bank branch can ever come close to providing the kind of services a PACS do. this shows the necessity of PACS in society. perhaps this is what the All India Rural Credit Survey 1951 was meant to be "Cooperation has failed but cooperation must succeed"
