Context:
Ministry of Cooperation issued a statement that Primary Agricultural Credit Societies (PACS) can also be employed as drone entrepreneurs for spraying fertilisers and pesticides.
Relevance:
GS III- Indian Economy
Dimensions of the Article:
- About Primary agricultural credit societies
- Objectives of PACS
- Functions of PACS
About Primary agricultural credit societies:
- PACS is the smallest cooperative credit institution in India and a basic unit.
- The initial Primary Agricultural Credit Society (PACS) was founded in 1904.
- It has a grassroots effect (gram panchayat and village level).
- PACS serves as the last point of contact between the primary borrowers, or rural residents, and the higher agencies, such as the Central Cooperative Bank, State Cooperative Bank, and Reserve Bank of India.
- PACS are governed by the RBI and registered under the Co-operative Societies Act.
- The “Banking Regulation Act-1949” and the “Banking Laws (Co-operative societies) Act 1965” are in charge of them.
Objectives of PACS
- To raise capital for the purpose of making loans and supporting members’ essential activities.
- To collect deposits from members with the goal of improving their savings habit.
- To supply agricultural inputs and services to members at reasonable prices,
- To arrange for the supply and development of improved breeds of livestock for members.
- To make all necessary arrangements for improving irrigation on land owned by members.
- To encourage various income-generating activities through supply of necessary inputs and services.
Functions of PACS
- PACS typically offer the following services to their members:
- Input facilities in the form of a monetary or in-kind component
- Agriculture implements for hire
- Storage space
-Source: Indian Express
