Presently, PACS account for 41 per cent or over 3 crore farmers of the kisan credit card loans given by all entities in the country. 95 per cent of these loans to 2.95 crore farmers through PACS are given to the small and marginal farmers.
The Cabinet Committee on Economic Affairs on Wednesday approved computerisation of Primary Agricultural Credit Societies (PACS). Mooted by the ministry of cooperation, this computerisation aims to increase the efficiency of PACS while simultaneously making their operations more transparent.
PACS constitute the lowest, village level tier of the short-term cooperative credit system and have the 63,000 functional PACS’ have a collective membership of about 13 crore farmers. The other two tiers – the state cooperative banks and the district central cooperative banks have been computerised with NABARD funding and networked using the common banking software.
Presently, PACS account for 41 per cent or over 3 crore farmers of the kisan credit card loans given by all entities in the country. 95 per cent of these loans to 2.95 crore farmers through PACS are given to the small and marginal farmers.
This computerisation of the thus-far manual functions of the PACS over the coming five years will cost Rs 2,516 crore and will entail a cloud-based common software and data storage facilities.
As a last and nodal point for engagement with village communities, PACS will also deliver services like interest subvention for farm loans, agriculture insurance, direct benefit transfers and the provision of agricultural inputs. In the immediate future, the computerisation will help speedier sanction and disbursal of credits.
The government plans are targeted at crores of small and marginal farmers while also facilitating the PACS’ to diversify their business and undertake multiple activities and services. It is envisaged that this will enable PACS to provide their members with ancillary services.
Besides improving digitalisation in rural areas, the project will help improve the outreach of the PACS as outlets for banking as well as non-banking activities.
