Updated: June 29, 2022 8:48 p.m. STI
New Delhi [India]June 29 (ANI): After the Cabinet Committee on Economic Affairs approved the computerization of Primary Agricultural Credit Companies (PACS) in a bid to increase efficiency, India’s Agricultural Fertilizer Cooperative (IFFCO) hailed the historic milestone and said the endorsement would connect even last-mile farmers.
IFFCO Managing Director (MD), Dr. US Awasthi welcomed the milestone and thanked Prime Minister Narendra Modi and Union Home Minister Amit Shah.
“The last mile farmer will be connected to the economy of the country and this will further strengthen the rural and agricultural economy of the country,” Awasthi said.
Computerization or digitization of PACS will enhance service delivery to farmers, especially Small and Marginal Farmers (SMF) and also become a service delivery node for the Interest Subsidy Scheme (ISS), PMFBY, Direct Benefit Transfer (DBT) for various services and benefits. inputs such as fertilizers, seeds, etc.
IFFCO Chairman Dileep Sanghani said it was a giant step towards Prime Minister Modi’s vision of Sahakar se samridhhi with the aim of empowering Indian farmers and rural India.
“This project will create transparency and accountability in the operations of PACS, thereby enabling them to diversify their business and undertake multiple activities and services and will be revolutionary for the development of PACS,” he added.
Primary Farmer Cooperative Credit Societies (PACS) are the lowest level of short-term cooperative credit (STCC) at three levels in the country, comprising about 13 million farmers as members, which is crucial for the development of the rural economy.
PACS accounts for 41% (3.01 Cr. Farmers) of KCC loans made by all entities in the country and 95% of these KCC loans (2.95 Cr. Farmers) through PACS are for small farmers and to marginal farmers. The other two levels viz. State Cooperative Banks (StCB) and Central District Cooperative Banks (DCCB) have already been automated by NABARD and adopted Common Banking Software (CBS).
The computerization of PACS, in addition to serving the purpose of financial inclusion and strengthening service delivery to farmers, especially small and marginal farmers (SMF), will also become a service delivery node for various services and supply of inputs such as fertilizers, seeds, etc.
The project will help improve the reach of PACS as outlets for banking as well as non-banking activities, in addition to improving digitalization in rural areas. DCCBs can then register as one of the important options to adopt various government programs (where credit and subsidy are involved) that can be implemented through PACS.
It will ensure rapid loan disposal, reduced transition costs, faster auditing, and reduced imbalances in payments and accounting with state cooperative banks and district central cooperative banks. (ANI)