The Central government is modernizing rural banking by computerizing 67,930 Primary Agricultural Credit Societies (PACS) across 30 states and Union Territories. The initiative, led by the Ministry of Cooperation and NABARD, aims to enhance financial inclusion for millions of farmers, said Union Minister Amit Shah in the House.
Rs 654.23 crore has been allocated for this project, which includes integrating PACS into a national ERP-based software platform connected to State Cooperative Banks and District Central Cooperative Banks.
PACS that have already computerized can receive Rs 50,000 for software integration. Maharashtra, Karnataka, Madhya Pradesh, and Rajasthan have received significant funding.
Model Byelaws have been introduced, allowing PACS to expand into dairy, fishery, floriculture, and other ventures, including LPG and fuel distribution.
This expansion aims to improve operational efficiency, transparency, and accountability while providing farmers with additional income sources. PACS will also offer over 300 e-services, including banking, insurance, and health services, further empowering rural communities.