Cabinet approves establishment of Agricultural Credit Societies
Tags: Economy/Finance National News
In 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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