To infuse transparency and efficiency into its government benefits distribution system, the Ministry of Cooperation has decided to revamp the Primary Agricultural Credit Societies (PACS) by bringing various schemes under its umbrella.
At a workshop on emerging technologies in PACS, held in New Delhi on Tuesday, Cooperation Secretary Ashish Bhutani said that the government is developing a comprehensive ‘cooperative stack’ by integrating various schemes through PACS to create a unified system for dispensing benefits in rural areas instead of the current fragmented approach.
“The ecosystem (of PACS) has been changed. (We have) reinvented the system...It was necessary to remove opacity and lack of transparency in PACS. We worked on that,” Bhutani said, adding that the operation of different schemes through separate channels was a big setback.
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The government is now focused on digitising PACS through online systems, he said, adding that many societies were now operating through digital platforms to enhance efficiency and accountability.
There are now about 1.08 lakh PACS having 13 crore members across the country, of which around 63,000 PACS are in the advanced stage of computerisation, he informed.
Another 80,000 PACS are on target for computerization, Bhutani said.
Set up in the 1900s, cooperative credit societies are one of the oldest institutions in the country. Over time, Urban Cooperative Banks (UCBs) and Regional Cooperative Banks (RCBs) underwent technological upgrades, but not the PACS.
A lack of technological advancement prevented regulator Reserve Bank of India from allowing them to undertake more activities.
It was after the formation of the Cooperation Ministry on July 6, 2021, that the focus shifted on computerising and strengthening the PACS.
The technology integration within the cooperative stack will include AI-driven solutions such as automated weather advisories that can help farmers make informed decisions about crop management and agricultural practices.
“The intent now is to migrate to a cooperative stack, similar to an agristack initiated by the agriculture ministry,” said an official of the ministry.
While other rural clusters like self-help groups have emerged over time, these operate under circulars and notifications rather than a formal legislative backing, making PACS a more robust and legally-sound foundation for the comprehensive cooperative stack being developed.
An inter-ministerial committee of secretaries is working on integrating various schemes under PACS, the legalised framework giving it a solid footing.
“The technology is the way forward to link all schemes seamlessly through PACS. It's all the more reason to ensure PACS embrace technologies as soon as possible,” Bhutani said.
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