Full Form Of Pacs Primary Agricultural Credit Societies Role

Full Form of PACS – Primary Agricultural Credit Societies

Role

It is the basic unit organized at the village’s grass-root level with the main role of dealing with agricultural borrowers of the village by 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 country’s higher financial agencies, who can resolve various issues of the members and the ultimate borrowers. It is important because it is very difficult for the farmers to directly approach the higher financial agencies for their problems. Thus, PACS helps them in that matter.

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Features

The Primary Agricultural Credit Societies are the association of persons, unlike in the case of the Joint Stock CompaniesJoint Stock CompaniesA joint stock company is one in which the company’s shares or stocks are jointly held by shareholders in some proportion and in which they have share in the profits based on their shareholding. Each holder is only liable for the amount of their shareholding, and they are free to transfer their shares.read more, where there is an association of capital.Association of persons in Primary Agricultural Credit Societies confers an equal level of rights on all society members 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.

Objectives

The PACS should provide the loan only to its members, the repayment schedule of which can be decided based on the purpose and tenure for which the members take the loan. Also, one should give the loan only for short and medium-term purposes.The PACS area should be limited only to the village level to which it belongs and for the benefit of its members.It should be of common interest if all the members of society and society demand all of its members’ contributions.One should give society membership only to those in the village where the credit society is established. Furthermore, there should be an unlimited liabilityUnlimited LiabilityUnlimited liability refers to the legal commitment of business owners to be accountable for all business debts if the firm’s assets cannot meet its debts or liabilities. In other words, the owners’ liability to the business is unlimited.read more for all PACS members.For the deposits as well as the loan which are there on its account, PACS is liable.

Organizational Structure

Generally, the organizational Structure of PACS comprises of the following:

General Body of PACS: The general body members are the supreme authority for any the society and exercise control overboard and management.Management Committee: The general body elects them to perform the work prescribed by the society’s rules, acts, and by-laws.Chairman, Vice-Chairman, and Secretary: Among the members, few appoint to 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 people responsible for performing their daily work. 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 to help its members on time.It helps promote the economic interest of all its members, considering the society’s principality.Maintaining the supply of the hired light machinery for agricultural purposes.It is to promote savings habits among its members.Another function of the PACS is to arrange for supplying agricultural inputs. Examples of agricultural inputs include 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 reasonable prices.

Advantages

Primary Agricultural credit society helps the farmers get credit for agricultural, short-term, and medium-term purposes and government-related funds distribution to eligible farmers.These credit societies also help implement government schemes related to farmers at their level and observe whether these schemes 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 resolve the farmers’ problems.

Disadvantages

Organizational Weakness: Though this cooperative society covers the major portion of the villages, there are still a few parts of villages, especially on the northeast side, not covered in this scheme. Thus, this may be a disadvantage.Over Dues: The larger over dues of this scheme are from landowners than the small cultivators. It means an undue advantage was taken by a few of the stronger farmers in the village against this scheme.Lack of Resources: No appropriate resources were given to the short-term and medium credits. Hence inappropriate resources cause a disadvantage to the scheme.

Conclusion

PACS organizes at the village level or a group of small villages with the main purpose of helping the members of the society in their agricultural work. It helps fulfill the financial requirements of its members, so it should not stop their work due to the unavailability of the finances. It gives the farmers the loan requirements for agricultural, short-term, and medium-term purposes, thus helping them grow their businesses.