Context:
Minister of Cooperation called for the establishment of PACS in all villages
Primary Agricultural Credit Societies:
- Village level cooperative credit societies that serve as the last link in a 3-tier cooperative credit structure headed by the State Cooperative Banks (SCB) at the state level.
- Credit from the SCBs is transferred to the District Central Cooperative Banks (DCCBs), that operate at the district level.
- DCCBs work with PACS, which deal directly with farmers.
- Individual farmers are members of the PACS, and office-bearers are elected from within them.
- A village can have multiple PACS.
- Provide short-term, and medium-term agricultural loans to the farmers for the various agricultural and farming activities.
- 1st PACS – Formed in 1904.
- Currently, there are 65,000 functional PACS in the country.
- Government target is that by 2029 all Panchayats of the country will have their own PACS
Initiatives to promote Cooperatives in India:
- 97th Constitution Amendment Act, 2011 – Granted constitutional status to the Cooperative Societies.
- Union Ministry of Cooperation – Created in 2021 to realize the vision of ‘Sahkar se Samriddhi’ (Cooperation to Prosperity).
- Multi-State Co-operative Societies (Amendment) Act, 2023 – To strengthen governance, enhance transparency, increase accountability, and reform electoral process in Multi State Cooperative Societies.
Source: PIB
Previous Year Question
Which of the following is not included in the assets of a commercial bank in India?
[UPSC Civil Service Exam – 2019 Prelims]
(a) Advances
(b) Deposits
(c) Investments
(d) Money at call and short notice
Answer: (b)