Full Form of PACS – Primary Agricultural Credit Societies
Full form of PACS is Primary Agricultural Credit Societies.PACS are the ground level co-operative society that helps on credit to the farmers for the various agricultural and farming activities by providing agricultural, short term and medium-term purpose loan requirements to its members and it majorly focus on gram panchayath and village level farmers.
- It is the basic unit that is organized at the village’s grass-root level with the main role of dealing with agricultural borrowers of the village by the means of giving agricultural, short term and medium-term purpose loans to the borrowers and then collecting the repayments against those loans.
- They act as a link between the higher financial agencies of the country who can resolve various issues of the members and the ultimate borrowers. It is an important role because it is very difficult for the farmers to approach directly to the higher financial agencies for their problems and thus PACS helps them in that matter.
- The Primary Agricultural Credit Societies are the association of persons, unlike in the case of the Joint Stock Companies where there is an association of capital.
- Association of persons in Primary Agricultural Credit Societies confers equal level of rights on all of the members of the society without considering their holding of share and their social standing.
- Share of the societies is of small value so that poor persons can also become its members.
- The loan should be provided by the PACS only to its member, the repayment schedule of which can be decided on the basis of the purpose and tenure for which the loan is taken by the members. Also, the loan should be given only for short and medium-term purposes.
- The area of working of the PACS should be limited only to the village level to which it belongs and for the benefit of its members.
- It should be of enabling common interest if all the members of the society and the society should demand the contribution of all of its members.
- The membership of the society should be given only to those members who are located at the village where the credit society is established and there should be unlimited liability of all the members of the PACS.
- For the deposits as well as the loan which are there on its account, PACS is liable.
Generally, the organizational Structure of PACS comprises of the following:
- General Body of PACS: General body members are the supreme authority for any of the society and exercise the control overboard as well as management.
- Management Committee: They are elected by the general body to perform the work as prescribed by the society’s rules, acts, and by-laws.
- Chairman, Vice-Chairman, and Secretary: Among the members, few people are appointed at the managing position as Chairman, Vice-Chairman, and Secretary of the society. They work for the benefit of the members by performing their roles and duties as assigned to them.
- Office Staff: These are the persons who are responsible for performing day to day work assigned to them. It includes clerks, peons, and supportive staff.
Functions of PACS
Functions of PACS are as discussed below:
- The main function of the PACS is to provide short and medium-term purpose loans to its members.
- Borrowing an adequate amount of funds from central financial agencies in order to help its members in a timely manner.
- It helps in promoting the economic interest of all of its members taking into consideration the principles of the society.
- Maintaining the supply of the hire light machinery for the agricultural purpose.
- It is to promote savings habits among its members.
- To make the arrangement of supplying of the agricultural inputs is another function of the PACS. Example of the inputs for agricultural purpose includes seeds, fertilizers, insecticides, etc. Along with this, they also supply required domestic products like kerosene, etc.
- It helps its members by providing marketing facilities that could enhance the sale of their agricultural products in the market at the proper prices.
- Primary Agricultural credit society helps the farmers to get credit for agricultural, short term and medium-term purpose and government-related funds distribution to eligible farmers at their place.
- These credit societies also help in implementing any government schemes which are related to farmers at their level and also to observe these schemes if they are attaining the purpose or not.
- PACS acts as a link between the higher financial agencies of the country who can resolve various issues of the members and the ultimate borrowers thereby helping in resolving the problems of the farmers.
- Organizational Weakness: Though, this corporative society covers the major portion of the villages but still there are few parts of villages especially to the northeast side which are not covered in this scheme, thus this may be a disadvantage.
- Over Dues: The larger over dues of this scheme are from landowners than compared to the small cultivators, which means undue advantage was taken against this scheme by a few of the farmers who are relatively stronger in the village.
- Lack of Resources: There was no appropriate resources given to the short term and medium credits. Hence inappropriate resources cause a disadvantage to the scheme.
PACS is organized at the village level or group of small villages with the main purpose of helping the members of the society in their agricultural work. It helps in fulfilling the financial requirements of its members so their working should not be stopped due to the unavailability of the finances. It makes the loan requirements of agricultural, short-term and the medium-term purpose to the farmers and thus helping them in growing their business.
This has been a guide to Full Form of PACS (Primary Agricultural Credit Societies). Here we learn functions of PACS along with its objectives, advantages, and disadvantages. You may refer to the following articles to learn more about finance –