On 2nd February 2023, a Memorandum of Understanding (MoU) was signed to enable Primary Agricultural Credit Societies (PACS) to provide services offered by Common Service Centers.
Key points
- PACS will now be able to undertake 20 different activities including water distribution, storage, Bank Mitra.
- PACS will now be able to function as Common Service Centres, along with this, more than 300 services will be made available to the rural population including 13 crore farmer members of PACS.
- It will increase the business activities of PACS and help them to become self-sustaining economic entities.
- With this initiative PACS will be able to provide all the services listed on the Digital Seva Portal of CSC scheme to citizens, including banking, insurance, Aadhaar enrolment/update, legal services, agri-inputs like farm equipment, PAN card , IRCTC, Rail, Bus, and Air ticket related services, etc.
- The national software being developed under the ongoing Centrally-Sponsored Scheme of PACS computerization will also be used for PACS to function as CSCs, which will be a big achievement.
- About 50 percent of the country’s population is associated with cooperatives in one way or the other and keeping in view the development of such a large sector.
- A provision has been made in this year’s budget to make 2 lakh PACS in the next five years and create a multi-purpose PACS in every Panchayat. Apart from this, the foundation of the world’s largest grain storage scheme has also been laid in the budget for the cooperative sector.
About PACS
- The short-term co-operative credit structure operates with a three-tier system – Primary Agricultural Credit Societies (PACS) at the village level, Central Cooperative Banks (CCBs) at the district level and State Cooperative Banks (StCBs) at the State level.
- PACS are outside the purview of the Banking Regulation Act, 1949 and hence not regulated by the Reserve Bank of India.
- StCBs/DCCBs are registered under the provisions of State Cooperative Societies Act of the State concerned and are regulated by the Reserve Bank.
- Powers have been delegated to National Bank for Agricultural and Rural Development (NABARD) under Sec 35 (6) of the Banking Regulation Act (As Applicable to Cooperative Societies) to conduct inspection of State and Central Cooperative Banks.
