Computerization of Primary Agricultural Credit Societies (PACS)

In News 

• The Cabinet Committee on Economic Affairs has approved Computerization of Primary Agricultural Credit Societies (PACS) .

About 

• The project proposes computerization of about 63,000 functional PACS over a period of 5 years with a total budget outlay of Rs. 2516 crore with Government of India share of Rs. 1528 crore.
• Objectives 
  • Increasing efficiency of PACS, bringing transparency and accountability in their operations
  • Facilitating PACS to diversify their business and undertake multiple activities/ services. 
  • Serving the purpose of financial inclusion and strengthening service delivery to farmers especially Small & Marginal Farmers (SMFs).

About PACS

• PACS constitute the lowest tier of the three-tier Short-term cooperative credit (STCC) in the country comprising approx.13 Cr. farmers as its members, which is crucial for the development of the rural economy. 
• PACS account for 41 % (3.01 Cr. farmers) of the KCC loans given by all entities in the Country and 95 % of these KCC loans (2.95 Cr. farmers) through PACS are to the Small and Marginal farmers. 
  • The other two tiers viz. State Cooperative Banks (StCBs) and District Central Cooperative Banks (DCCBs) have already been automated by the NABARD and brought on Common Banking Software (CBS).

Source:PIB