Long-term finance will soon be introduced through PACS: Amit Shah

New Delhi, Nov 27 (Representative) Union Home Minister and Minister of Cooperation, Amit Shah on Tuesday said that long-term finance will soon be introduced through Primary Agricultural Credit Societies (PACS), which will empower farmers even further. Speaking at the Diamond Jubilee Celebrations of the National Federation of State Co-operative Banks Limited (NAFSCOB) and national meeting of Rural Cooperative Banks at the Bharat Mandapam here, Shah said without the three-tiered structure of PACS, district-level and state-level banks, it was impossible for India’s agriculture, farmers and villages to successfully complete the journey of 75 years of independence. He added that in a vast country like India, the system of disbursing short-term agricultural loans to about 13 crore farmers without any hassle has been instrumental in giving a new lease of life to farmers and the agriculture sector of the country. He said that the district and state-level banks have not only taken care of short term agricultural loans, but the district level banks and PACS have also breathed a new life into every aspect, ranging from collective farming, water management, materials used in farming and individual work to strengthening the village, with the support from the state level bank. He said that in 2027, India’s economy will be the third largest in the World which is also a goal of the cooperative sector.

Shah said that along with this, the objective of the Ministry of Cooperation is to also to take care of the happiness of 140 crore people of the country. The Cooperation Minister said that there are two obstacles in the cooperative sector – unequal treatment and the absence of a seamless legal framework and the evils that have creeped in during the last 75 years. He said, “If we overcome both these obstacles, then the next 5 years will prove to be a defining moment for the cooperative sector. India’s cooperative sector has the potential to guide the cooperative sectors across the world”. Shah said that unless PACS are equipped with technology, there can be no transparency in their administration and there would be issues in their viability. The district and state banks can remain effective, only by keeping PACS healthy and performing.He said, “We will have to come out of the traditional approaches within PACS and provide space to the youth to connect with not only cooperatives but also with the functioning of PACS”.

He said, “As long as we do not strengthen PACS, district cooperative banks are of no significance, and to strengthen PACS, the Modi government has initiated several steps”. He said the old Bye-Laws of PACS had become irrelevant. He mentioned that many changes have been made in them and sent the model Bye-Laws to the states, all states have accepted them. “Now PACS can also operate Prime Minister’s Jan Aushadhi Kendras, run dairies, manage fishermen’s committees, and nearly 744 PACS have also received drug licenses. Along with this, PACS have been granted fertilizer licenses, and around 39,000 PACS have now become Common Service Centers (CSCs) and are providing more than 300 services in villages,” Shah said.Shah said the cooperative sector can drive the economy of the entire country. He mentioned that providing employment, respect, and prosperity to the country’s 140 crore population can only be achieved through cooperatives. He stated that if state cooperative banks and district cooperative banks do not become sensitive to PACS, then the sensitivity of the Ministry of Cooperation will not achieve the desired results.