Govt to bring model by-laws to govern all Primary Agricultural Cooperative Societies
Union Home and Cooperation Minister Amit Shah has said that the government will bring a model bye-law to govern all Primary Agriculture Cooperative Societies (PACS) in the country.
He was addressing a national conference on rural cooperative banks organised by the Ministry of Cooperation and the National Federation of State Cooperative Banks (NAFSCOB) at Vignan Bhavan in New Delhi on 12 August.
He said that sick and discontinued packs should be revived or taken for liquidation.
PACS will not be viable just by giving agriculture loans, they should diversify their business.
He stressed the need to set up more than 2 lakh new PACS across the country to achieve the target of providing agri-finance of Rs 10 lakh crore through cooperatives.
Presently there are more than 95,000 packs, of which only 63,000 packs are operational.
The implementation of these model bye-laws will depend on the states as cooperatives are a subject in the State List (Schedule VII).
What are 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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