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Union Cabinet Approves Computerisation Of PACS

This project proposes computerisation of about 63,000 functional PACS over a period of five years with a total budget outlay of Rs. 2516 crore with Government of India share of Rs. 1528 crore

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The cabinet committee on economic affairs chaired by Prime Minister Narendra Modi has approved the computerisation of Primary Agricultural Credit Societies (PACS) with the objective of increasing the efficiency of PACS, bringing transparency and accountability in their operations; facilitating PACS to diversify their business and undertake multiple activities/ services, on Wednesday.

This project proposes computerisation of about 63,000 functional PACS over a period of five years with a total budget outlay of Rs 2,516 crore with the government share of Rs 1,528 crore.

The PACS constitute the lowest tier of the three-tier short-term cooperative credit (STCC) in the country comprising approximately 13 crore farmers as its members, which is crucial for the development of the rural economy. 

PACS account for 41 per cent (3.01 crore farmers) of the KCC loans given by all entities in the Country and 95 per cent of these KCC loans (2.95 crore farmers) through PACS are to the small and marginal farmers. The other two tiers viz. State Cooperative Banks (StCBs) and District Central Cooperative Banks (DCCBs) have already been automated by the NABARD and brought on Common Banking Software (CBS).

However, majority of PACS have so far been not computerised and still functioning manually resulting in inefficiency and trust deficit. In some of the states, stand-alone and partial computerisation of PACS has been done. 


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