Cabinet approves establishment of Agricultural Credit Societies

Tags: Economy/Finance National News

Agricultural Credit SocietiesIn order to strengthen the cooperative sector, the Union Cabinet on 15 February approved the setting up of a new Primary Agricultural Credit Society (PACS) in two lakh panchayats in the next five years.

An overview of the news

  • According to the government, 25 different facilities will be made available through the Primary Agricultural Credit Society.

  • Dairy and fisheries will also be linked to agricultural cooperatives.

  • In the next 5 years, a target has been set to establish 2 lakh multipurpose packs, dairy, fisheries cooperatives.

  • The scheme will be implemented with convergence of various schemes.

  • The scheme will be implemented with convergence of various schemes by leveraging the 'Whole of Government' approach.

Primary Agricultural Cooperative Societies (PACS) 

  • These are grassroots level cooperative credit institutions that provide short-term and medium-term agricultural loans to farmers for various agricultural and agricultural activities.

  • It works at the gram Panchayat and village level.

  • The first Primary Agricultural Credit Society (PACS) was set up in 1904.

  • PACS are registered under the Co-operative Societies Act and regulated by RBI.

Objectives of PACS

  • Raise capital for the purpose of making loans

  • Supporting members' essential activities

  • Collect deposits from members with the goal of improving their savings habit

  • Arrange for the supply and development of improved breeds of livestock to the members

  • Supply agricultural inputs and services to members at reasonable prices

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