Cooperation Ministry signs MoU to enable Primary Agricultural Credit Societies

Tags: Economy/Finance

A Memorandum of Understanding (MoU) was signed on February 2 to enable Primary Agricultural Credit Societies (PACS) and provide services by Common Service Centers (CSC).

An overview of the news

• The MoU was signed between the Ministry of Cooperation, Ministry of Electronics and Information Technology, NABARD and CSC e-Governance Services India Limited in New Delhi.

• The MoU was signed in the presence of Union Minister for Home Affairs and Cooperation, Amit Shah and Union Minister for Electronics and Information Technology, Ashwini Vaishnav.

• This will help in taking forward the concept of Common Service Centers easily to the smallest unit of the country.

• This agreement will enhance the business activities of PACS and help them to become a self-sustaining economic entity.

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