Govt to bring model by-laws to govern all Primary Agricultural Cooperative Societies

Tags: Economy/Finance National News

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.

Important facts

  • 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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