What are Primary Agricultural Credit Societies (PACS)

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About the Primary Agricultural Credit Societies (PACS):

PACS are village-level cooperative credit societies that serve as the last link in a three-tier cooperative credit structure headed by the State Cooperative Banks (SCB) at the state level.
Credit from the SCBs is transferred to the district central cooperative banks (DCCBs) that operate at the district level. The DCCBs work with PACS, which deals directly with farmers.
Individual farmers are members of the PACS, and office-bearers are elected from within them.
There are 1.02 lakh PACS in India (As per the RBI report of December 2022).
Functions:
- To provide short and medium-term purpose loans to farmers for various agricultural purposes.
- Borrowing adequate funds from central financial agencies to help its members on time.
- Maintaining the supply of the hired light machinery for agricultural purposes.
- To promote savings habits among its members.
- To arrange for supplying agricultural inputs.
- Provide marketing facilities to members that could enhance the sale of their agricultural products in the market at reasonable prices.
Organizational Structure:
- General Body: Exercise control overboard and management.
- Management Committee: The general body elects them to perform the work prescribed by society’s rules, acts, and by-laws.
- Chairman, Vice-Chairman, and Secretary: Appointed from amongst its members. They work for the benefit of the members by performing their roles and duties as assigned to them.
- Office Staff: Performs day-to-day work.

Q1) Who regulates Co-operative Societies in India?

The incorporation, regulation and winding up of co-operative societies (other than those operating in more than one State) is a State subject and is governed by the State laws on co-operative societies . In the case of co-operatives with objects not confined to one State, their incorporation, regulation and winding up fall in the central domain and are governed by the Multi-State Co-operative Societies Act, 2002. As the vast majority of co-operative societies are operating only in one State, the State Government and the Registrar of Co-operative Societies appointed by the State are the main regulatory authorities for the cooperative societies

Source: Union Cabinet approves establishment of new Primary Agricultural Credit Society in 2 lakh panchayats