NEW DELHI: Promoting the establishment of 20,000 new primary agricultural credit societies (PACS) across the country in the next five years, Minister of State and Cooperation Amit Shah on Friday said PACS are the soul of the agricultural credit system and therefore it is necessary to strengthen them by increasing their number from 95,000 to about 30,000.
“If the number of PACS reaches 30,000 panchayats in the whole country, the distribution of agricultural finance worth Rs 10 lakh can be done through Cooperative“Shah said while speaking at the national conference on rural cooperative banking.
“With the foundation of 30,000 PACS being consolidated, district cooperative banks will be consolidated, which will lead to the consolidation of state-owned cooperative banks,” said Shah.
At present, there are 63,000 functional PACSs out of a total of 95,000 such credit institutions in the country, disbursement of agricultural finance is Rs 2 lakhs. PACS is the lowest level of three-tier short-term cooperative credit in the country with about 13 farmers as its members, which is very important for the development of the rural economy.
Record Room“Computerization has recently been approved for about 63,000 PACS to improve efficiency and bring transparency and accountability in their operations,” says Shah, “Computerization is the key medicine for 100 diseases… This will help to upgrade their human resources and accounting system. . ”
Shah said the ministry of cooperation has produced a draft ‘PACS legal model’, inviting state governments and stakeholders to propose.