Primary Agricultural Credit Societies - Chanakya Mandal Pariwar

Primary Agricultural Credit Societies


  • Recently, Govt approves Rs 2,516 cr for computerisation of 63,000 Primary Agriculture Credit Societies


  • PACS are village-level cooperative credit societies that offer short-term loans, mainly for crop-related purposes, and collect repayments from rural (agricultural) borrowers.
  • They are the basic and smallest cooperative credit institutions in India, operating at the grassroots level, i.e., gram panchayat and village level.
  • The State Cooperative Banks (SCB) head PACS at the state level, and the credit from SCBs is transferred to the District Central Cooperative Banks (DCCBs), which operate at the district level.
  • DCCBs work with PACS, which deal directly with farmers.
  • The functions of PACS include promoting savings habits among members, providing agricultural inputs, helping members with marketing facilities, and offering short and medium-term loans.
  • PACS can borrow adequate funds from central financial agencies to carry out their functions effectively.

Organizational Structure

  • General Body of PACS: Exercise the control over board as well as management.
  • Management Committee: Elected by the general body to perform the work as prescribed by the society’s rules, acts, and by-laws.
  • Chairman, Vice-Chairman, and Secretary: Work for the benefit of the members by performing their roles and duties as assigned to them.
  • Office Staff: Responsible for performing day to day work.

PYQs (2009)

  1. Q) The farmers are provided credit from a number of sources for their short and long term needs. The main sources of credit to the farmers include-
  • Primary Agricultural Cooperative Societies, commercial banks, RRBs and private money lenders
  • The NABARD, RBI, commercial banks and private money lenders
  • District Central Cooperative Banks (DCCB), the lead banks, IRDP and JRY
  • The Large Scale Multi-purpose Adivasis Programme, DCCB, IFFCO and commercial banks