Primary Agricultural Credit Societies (PACS) are the grassroots-level cooperative credit institutions in India that serve as a vital part of the country’s cooperative credit structure. They play a crucial role in providing financial assistance and credit to farmers, particularly in rural areas. PACS are an instrument of financial inclusion of rural India and empower farmers to get community support.
- Financial Role:
- PACS grants short-term loans for agriculture, borrowing for consumption, education, and health to rural families.
- Membership
- Any farmer, who is a member of that cooperative, may join, and the loans are typically disbursed through Kisan Credit Cards (KCC).
- Governed By
- The management of the PACS is vested in an elected committee of representatives from the local farming community and reports to higher level institutions of the cooperatives.
- Functions Beyond Credit
- Apart from lending services, the PACS is concerned with such non-lending activities as providing storage facilities, providing procurement services, consumer stores, or fertilizer outlets.
- Support by Government
- The Government has various financial schemes in support of PACS that comprise interest subvention and other types of subsidy programs.
