IFFCO welcomes cabinet's historic step towards digitalization of PACS

New Delhi [India], June 29 : After the Cabinet Committee on Economic Affairs approved the computerization of Primary Agricultural Credit Societies (PACS) with the objective of increasing efficiency, the Indian Farmers Fertiliser Cooperative (IFFCO) welcomed the historic step and said that the approval would connect even the last mile farmers.
The Managing Director (MD) IFFCO, Dr U S Awasthi, welcomed the step and thanked Prime Minister Narendra Modi and Union Minister of Home Affairs Amit Shah.
"The last mile farmer will be connected to the economy of the country and this will further strengthen the rural and agricultural economy of the country," said Awasthi.
The computerization or Digitalization of PACS will strengthen the service delivery to farmers especially Small & Marginal Farmers (SMFs) and will also become nodal service delivery point for Interest Subvention Scheme (ISS), PMFBY, Direct Benefit Transfer (DBT) for various services and provision of inputs like fertilizers, seeds etc.
The Chairman IFFCO Dileep Sanghani said that it is a giant step towards PM Modi's vision of Sahakar se samridhhi with the aim of empowering the Indian farmers & rural India.
"This project will create transparency and accountability in operations of PACS thus facilitating them to diversify their businesses and undertake multiple activities and services and will be revolutionary for the development of PACS," he added.
The Primary Agricultural Cooperative credit societies (PACS) constitute the lowest tier of the three-tier Short-term cooperative credit (STCC) in the country comprising approx.13 crore farmers as its members, which is crucial for the development of the rural economy.
PACS account for 41 per cent (3.01 Cr. farmers) of the KCC loans given by all entities in the Country and 95 per cent 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).
Computerization of PACS, besides serving the purpose of financial inclusion and strengthening service delivery to farmers especially Small and Marginal Farmers (SMFs) will also 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.