Context:
Amit Shah, the Union Home and Cooperation Minister, has inaugurated 10,000 Multipurpose Primary Agriculture Credit Societies (M-PACS).
Key Highlights:
- The government has a plan of establishing two lakh M-PACS within five years.
- Storage and distribution of manure, gas, fertilisers, and water will be among the 32 activities that M-PACS will be undertaking.
- Distribution of l RuPay Kisan Credit Cards and microATMs: Shah’s initiative helps farmers be acquainted with low-cost loans.
Multipurpose Primary Agriculture Credit Societies (M-PACS)
Primary Agricultural Credit Societies (PACS) are the primary branches of the short-term co-operative credit structure, primarily dealing with rural borrowers, providing loans, collecting repayments, and managing distribution and marketing functions. They form the base of the co-operative credit structure, linking ultimate borrowers to higher financing agencies.
The Kisan Credit Card (KCC)
The Kisan Credit Card (KCC) is a scheme that provides farmers with credit for their agricultural as well as non-farm needs. The scheme was introduced in 1998 by public sector banks in India.
Benefits:
- Interest subvention:
- The government of India provides a 2% interest subvention to farmers.
- Repayment Incentive:
- Farmers get a 3% incentive for prompt repayment.
- Simple Procedures:
- The scheme offers flexible and simplified procedures to help farmers get credit when they need it.
The National Payments Corporation of India (NPCI) designs the KCC card, which is then adopted by banks with their branding.
