Every village to have agricultural credit societies by 2027, says Amit Shah.

Syllabus: GS-III, Subject: Economy,  Topic: Banking and Financial Intermediaries, Issue: Primary Agricultural Credit Societies

Context: Centre has decided to ensure formation of Primary Agricultural Credit Societies (PACS) in every village by 2027.

• The National Cooperative Database is launched and ‘National Cooperative Database 2023: A Report’ released.

Primary Agricultural Credit Societies(PACS):

• PACS are the foundation of the three-tier short-term co-operative credit structure.
  1. Primary Agricultural Credit Societies (PACS) at the village level,
  2. District Central Cooperative Banks (DCCBs) at the district level and
  3. State Cooperative Banks (StCBs) at the State level.
• Give loans and collect repayments of loans given to rural (agricultural) borrowers.
• Also undertake distribution and marketing functions.
• Serves as the final link between the ultimate borrowers and the higher financing agencies like banks, RBI, NABARD.

Regulation:

• Registered under the Cooperative Societies Act of the State concerned.
• PACS are outside the purview of the Banking Regulation Act, 1949 and hence not regulated by the Reserve Bank of India.