Centre approves Rs 2,516 Cr for computerisation of 63,000 PACS; to benefit 13 Cr farmers

The Union Cabinet on June 29 approved Rs. 2,516 crore for the Computerisation of Primary Agricultural Credit Societies (PACS), that is aimed at providing financial inclusion. Notably, the PM Modi cabinet has de-regularised the sale of domestically produced crude oil and measures have also been taken to guarantee market independence for all exploration and production companies. This step by the Centre is said to benefit over 13 crore farmers. The decision was taken by the Cabinet Committee on Economic Affairs (CCEA) chaired by PM Modi.

The computerisation programme is aimed at increasing efficiency of PACS, bringing transparency and accountability in their operations, facilitating these societies to diversify their businesses and undertake multiple activities/ services.

Union Home Minister Amit Shah lauded the step taken by the Union Cabinet. While adding how this would go on to amplify businesses, the Home Minister claimed that the software would be available in regional languages and would be a nodal point for providing various services like Direct Benefit Transfer (DBT), Interest Subvention Scheme (ISS), crop insurance scheme and inputs like fertilisers, seeds. While expressing gratitude to PM Modi for this 'visionary decision', Amit Shah stated that PM's vision of 'prosperity through cooperation' was not just a statement, but a sense of positivity.
 

'63,000 primary agriculture credit societies in India approved for computerisation'

Delving into the intricacies of the decision, Union Minister Anurag Thakur spoke to the media and claimed that 63,000 primary agriculture credit societies in the country had been approved for computerisation. He added that the aim of this decision will be to enhance its efficiency, bring transparency and accountability in operations along with diversifying business and services.

Anurag Thakur further stated that the collection of data, improvisation of cyber security hardware, training of existing records along with cloud-based integrated software would be the critical components of the said project. The Information and Broadcasting Minister also emphasised on how this would go on to benefit the small and marginal groups of farmers, and added that it's a landmark decision and a reform in this sector.

What is PACS?

PACS is a village-level institution that serves as the foundation for the three-tier cooperative credit structure. The goal of PACS is to encourage agriculturists to save, accept deposits, and provide loans to borrowers in need. PACS was first formed in the year 1904 and till the early 70s this was the only institutional credit agency available to people residing in rural areas. One of the major features of PACS is that it confers rights to all its members without taking into concern their holding of share or their social background.

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