Context:
Recently, 10,000 newly established Multipurpose Primary Agricultural Credit Societies (M-PACS), along with cooperative societies for dairy and fisheries, were inaugurated.
About Primary Agricultural Credit Societies (PACS):
- Grass root level credit institution of the short-term co-operative credit structure.
- 1st PACS – Formed in 1904.
- Functions:
- Deals with rural (agricultural) borrowings, collection & repayments of loans.
- Undertakes distribution & marketing functions.
- Serves as the final link between the ultimate borrowers and the higher financing agencies (Scheduled Commercial Banks, NABARD, etc.).
- Membership:
- Individual farmers, artisans, and members of other weaker sections of the society as shareholders.
- Regulation:
- Registered under Cooperative Societies Act, 1912, and administered by concerned State Registrar of Cooperative Societies (RCS).
- Outside the purview of Banking Regulation Act, 1949, not directly regulated by RBI.
- Significance:
- Promotes financial inclusion.
- Building block of the cooperative banking system.
- Brings farmer communities closer to institutional credit, inputs, market, value addition, etc.
- Initiatives to Strengthen PACS:
- Enable functioning as Kisan Samriddhi Kendras and Common Service Centres.
- Implement a Centrally Sponsored Project for their computerization.
- Introduce model bylaws to make them multipurpose.
- Promote the ‘Sahkar Se Samriddhi’ campaign to drive prosperity through cooperation.
Source: PIB
Previous Year Question
Consider the following statements:
Statement-I: Interest income from the deposits in Infrastructure Investment Trusts (InvITs) distributed to their investors is exempted from tax, but the dividend is taxable.
Statement-II: InviTs are recognized as borrowers under the ‘Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002’.
Which one of the following is correct in respect of the above statements?
[UPSC CSE – 2023 Prelims]
(a) Both Statement-I and Statement-II are correct, and Statement-II is the correct explanation for Statement-1
(b) Both Statement-I and Statement-II are correct, and Statement-II is not the correct explanation for Statement-1
(c) Statement-1 is correct but Statement-II is incorrect
(d) Statement-I is incorrect Statement-II is correct
Answer: (d)