Primary Agricultural Credit Society
Also called: PACS · Topic: Civil Society, Pressure Groups, NGOs and Self-help Groups · NCERT: Beyond NCERT
Meaning
A Primary Agricultural Credit Society (PACS) is a village-level cooperative that gives farmers short-term loans. It is the bottom tier of the short-term cooperative credit chain, which runs PACS → district central cooperative bank → state cooperative bank. Since cooperatives are a State subject, the Centre has pushed PACS reform mainly through model bye-laws (sample rules that states can adopt) and funded schemes. The Ministry of Cooperation, created in 2021, treats PACS as the base of its reforms.
Example
The 2023 model bye-laws let a PACS take up dairy, fisheries, storage, fertiliser outlets, Jan Aushadhi Kendras (cheap-medicine shops) and Common Service Centres. A 2023 plan also aims to set up 2 lakh new multipurpose PACS in five years.
Don't confuse with
- District central cooperative bank: the middle tier of the chain. It lends to PACS, not straight to most farmers.
- Self-help group: an informal group of 10-20 women who save and borrow together. A PACS is a registered cooperative with farmer members.
Related concepts
- Ministry of Cooperation
- Multi-State Cooperative Societies (Amendment) Act 2023
- National Cooperation Policy 2025