Union Cooperation Minister thanks PM, for the major decision taken by the Cabinet for computerization of PACS » Bhajpa Ki Baat
The Union Home Minister and Minister of Cooperation, Shri Amit Shah has thanked the Prime Minister, Shri Narendra Modi, for the major decision taken by the Cabinet today for computerization of Primary Agricultural Credit Societies (PACS).
In a series of tweets, Shri Amit Shah said whether it is the creation of the Ministry of Cooperation or decisions taken thereafter in the direction of empowering this sector, they show that Prime Minister Shri Narendra Modi’s ‘Sahakar Se Samridhi’ is not just a slogan, rather that the Prime Minister has an unwavering resolve to bring positive change to lives of those associated with the cooperative sector. Further in this series of decisions, the Cabinet chaired by Shri Narendra Modi has taken a very important decision today to computerize about 63,000 PACS, which are the smallest unit in the cooperative sector and their computerization will prove to be a boon for the sector. I express my gratitude to Prime Minister Shri Narendra Modi for this visionary decision.
The Union Home Minister and Minister of Cooperation said 63,000 PACS will be computerized at a cost of Rs. 2,516 crore, which will benefit about 13 crore small and marginal farmers. In this digital age, the decision of computerization of PACS will increase their transparency, reliability and efficiency and will also facilitate the accounting of multipurpose PACS.
Shri Amit Shah said software will be made available in local languages for the convenience of the people. Along with this, it will also help PACS to become a nodal center for providing various services such as Direct Benefit Transfer (DBT), Interest Subvention Scheme (ISS), Crop Insurance Scheme (PMFBY) and inputs like fertilizers and seeds.
Cabinet approves Computerization of Primary Agriculture Credit Societies (PACS)
The Cabinet Committee on Economic Affairs chaired by Prime Minister Shri Narendra Modi has approved Computerization of Primary Agricultural Credit Societies (PACS) with the objective of increasing efficiency of PACS, bringing transparency and accountability in their operations; facilitating PACS to diversify their business and undertake multiple activities/ services. This project proposes computerization of about 63,000 functional PACS over a period of 5 years with a total budget outlay of Rs. 2516 crore with Government of India share of Rs. 1528 crore.
The Primary Agricultural Cooperative credit societies (PACS) constitute the lowest tier of the three-tier Short-term cooperative credit (STCC) in the country comprising of approx.13 Cr. farmers as its members, which is crucial for the development of the rural economy. PACS account for 41 % (3.01 Cr. farmers) of the KCC loans given by all entities in the Country and 95 % of these KCC loans (2.95 Cr. farmers) through PACS are to the Small and Marginal farmers. The other two tiers viz. State Cooperative Banks (StCBs) and District Central Cooperative Banks (DCCBs) have already been automated by the NABARD and brought on Common Banking Software (CBS).
However, majority of PACS have so far been not computerized and still functioning manually resulting in inefficiency and trust deficit. In some of the states, stand-alone and partial computerization of PACS has been done. There is no uniformity in the software being used by them and they are not interconnected with the DCCBs and StCBs. Under the able guidance of Shri Amit Shah, Hon’ble Minister of Home and Cooperation, it has been proposed to computerize all the PACS throughout the Country and bring them on a common platform at National level and have a Common Accounting System (CAS) for their day to day business.
Computerization of PACS, besides serving the purpose of financial inclusion and strengthening service delivery to farmers especially Small & Marginal Farmers (SMFs) will also will become nodal service delivery point for various services and provision of inputs like fertilizers, seeds etc. The project will help in improving the outreach of the PACS as outlets for banking activities as well as non-Banking activities apart from improving digitalisation in rural areas. The DCCBs can then enrol themselves as one of the important options for taking up various government schemes (where credit and subsidy is involved) which can be implemented through PACS. It will ensure speedy disposal of loans, lower transition cost, faster audit and reduction in imbalances in payments and accounting with State. Cooperative Banks and District Central Cooperative Banks.
The project comprises of development of cloud based common software with cyber security and data storage, providing hardware support to the PACS, digitization of existing records including maintenance support and training. This software will be in vernacular language having flexibility of customisation as per the needs of the States. Project Management Units (PMUs) will be set up at Central and State levels. District Level Support will also be provided at cluster of about 200 PACS. In the case of states where computerization of PACS has been completed, Rs. 50,000/- per PACS will be reimbursed provided they agree to integrate with/adopt the common software, their hardware meets the required specifications, and the software was commissioned after 1st February, 2017.
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