PACS Workshop Spotlights Tech Integration and Rural Credit Reforms
In his inaugural address, Dr. Ashish Kumar Bhutani underscored the Ministry’s mission to digitize and diversify PACS, turning them into robust economic engines of rural India.
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- India
In a landmark effort to modernize India’s grassroots cooperative institutions, the Ministry of Cooperation today held a high-level workshop on “Emerging Technologies in PACS” (Primary Agricultural Credit Societies) at PHD House, New Delhi. The event was inaugurated by Dr. Ashish Kumar Bhutani, Secretary, Ministry of Cooperation, and was attended by a diverse group of stakeholders from across the cooperative ecosystem.
The workshop drew participation from over 122 PACS members representing 12 states, along with senior officers from the Ministry of Cooperation, Registrar of Cooperative Societies (RCS) from multiple states, and key representatives from organizations such as NABARD, NCDC, NFDB, NCCT, NCCF, IFFCO, and KRIBHCO.
Tech Transformation in Rural Credit Institutions
In his inaugural address, Dr. Ashish Kumar Bhutani underscored the Ministry’s mission to digitize and diversify PACS, turning them into robust economic engines of rural India. He emphasized that while PACS are over 100 years old, they remain one of the most essential institutional links to rural communities, especially small and marginal farmers.
Dr. Bhutani highlighted a major disparity: although the overall share of cooperative credit institutions in short-term lending has declined to 15%, the reach and relevance of PACS continue to grow, with 42% of rural borrowers benefiting from their services. This, he said, confirms the vital role PACS play in rural credit delivery.
PACS in Numbers: Legacy and Scope
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Over 1 lakh PACS exist today.
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These institutions serve 13 crore members nationwide.
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Approximately 1,900 banking licenses are held by cooperatives out of nearly 2,000 in India.
Despite their historic presence, most PACS have struggled to modernize, facing issues in technology adoption, limited service portfolios, and restricted regulatory flexibility. Dr. Bhutani stressed the need to address these gaps through structural reforms and digital transformation.
Key Themes Discussed
The workshop centered on several critical themes:
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PACS in the Age of Digital India
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Importance of digitizing credit delivery and operational transparency.
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Success models from railway ticketing computerization as a parallel.
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Leveraging AI, IoT & Agri-Tech Tools
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Integrating weather forecasts, pest attack warnings, and rainfall predictions into PACS operations.
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Enabling real-time decision support for farmers.
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Cooperative Fintech and Policy Innovations
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Need for cooperative banking reforms.
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Incorporation of digital payment platforms and mobile banking in PACS.
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Experience Sharing from States
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Tamil Nadu, Jammu & Kashmir, and Mizoram shared their successful PACS digitization efforts and policy innovations.
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Key Initiatives by the Ministry
Dr. Bhutani enumerated three major initiatives led by the Ministry under the leadership of Prime Minister Narendra Modi and Union Home & Cooperation Minister Shri Amit Shah:
1. Model Bye-Laws and PACS Diversification
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New bye-laws now enable PACS to take up 26 different economic activities beyond credit.
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These include warehousing, agro-processing, dairy, fisheries, common service centers, and even drone-based farming services.
2. National Database of Cooperatives
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Developed to identify geographical and sectoral gaps.
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Facilitates targeted policymaking and planning at both central and state levels.
3. PACS Computerization Scheme
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Nearly ₹3,000 crore invested in PACS digitization.
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Goal: Computerize 80,000 PACS to convert them into vibrant, tech-integrated rural hubs.
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All Government of India schemes are being integrated with PACS through a unified tech platform.
“One Stop Shop” for Rural India
Dr. Bhutani strongly advocated for PACS to be developed into “One Stop Shops” that provide credit, agri-inputs, insurance, weather updates, market linkage, and public services—all under one roof.
He stressed that PACS are legally recognized institutions with deep penetration in rural areas, making them ideal vehicles to implement the Government of India’s vision for rural empowerment and cooperative-led development.
International Year of Cooperatives and Community Outreach
The workshop also marked participation in the International Year of Cooperatives. As a symbolic gesture, Dr. Bhutani planted a sapling under the “Ek Ped Maa Ke Naam” campaign, emphasizing the importance of environmental sustainability and community consciousness among cooperative members.
The event also hosted startup showcases, knowledge-sharing sessions, and exhibition stalls by cooperative institutions demonstrating tech-driven innovations.
Conclusion and Way Forward
The workshop concluded with an open forum where PACS members voiced their concerns and shared grassroots-level experiences. Certificates were distributed to participating PACS representatives. The event was hailed as a significant platform for cross-learning, showcasing successful state-level models and highlighting the way forward for technology-driven, financially sustainable, and socially impactful PACS.
Dr. Bhutani reaffirmed the Ministry's commitment to modernizing India’s cooperative sector and making PACS a pivotal force in achieving Atmanirbhar Bharat and Viksit Bharat by 2047.
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