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Government Expands Role of Rural Credit Societies Nationwide

RR Team, February 3, 2026February 3, 2026
The Government of India has embarked on a major initiative to expand and modernize Primary Agricultural Credit Societies (PACS), dairy, and fisheries cooperatives across the country. Over the next five years, every panchayat and village is expected to be covered under multipurpose PACS to provide affordable credit, quality inputs, and allied services to small and marginal farmers.

Expansion and Digitization of PACS

As per the National Cooperative Database, 32,802 new PACS, dairy, and fisheries cooperatives have been registered, while 15,793 existing cooperatives have been strengthened nationwide as of January 2026. Out of 79,630 sanctioned PACS, 61,478 have been fully digitized, enabling services such as Shared Core Banking Solutions (CBS), AePS, UPI, and other digital financial services to modernize cooperative banking.

Model Bye-Laws Promote Inclusivity

The Government has circulated Model Bye-laws for PACS to all States and Union Territories to transform them into multipurpose, transparent, and inclusive institutions. These bye-laws emphasize representation for women and Scheduled Castes/Scheduled Tribes (SC/ST), with the Multi-State Cooperative Societies (Amendment) Act, 2023 mandating reservation on boards. The National Cooperation Policy 2025 further encourages women and weaker sections to take leadership roles.

Support for Women and SHGs

PACS now function as multipurpose service centers where women and Self-Help Groups (SHGs) can access affordable loans and allied services. Schemes like Swayam Shakti Sahakar Yojana and Nandini Sahakar support women-led cooperatives and SHGs, enabling them to actively participate in cooperative governance and rural development initiatives.

Maharashtra Implementation

In Maharashtra, 12,178 PACS have been sanctioned for computerization, with ₹130.73 crore released for hardware, ERP deployment, and training. In Jalgaon district, all 352 sanctioned PACS are fully onboarded on ERP-based national software, achieving 100% digitization. Training institutions such as VAMNICOM and ICM have trained over 37,000 participants between 2024 and 2025.

Financial support through the National Cooperative Development Corporation (NCDC) in Maharashtra has reached ₹13,575.28 crore over five years, benefiting sugar, textile, and fisheries sectors. Additionally, 15 PACS have completed godown construction under the World’s Largest Grain Storage Plan, reducing distress sales and improving farmers’ income.

Cooperative Growth in Other States

In Karnataka’s Dakshina Kannada district, 121 PACS, 420 dairy cooperatives, and 22 fisheries cooperatives are operational, with digitization initiatives underway. Similar modernization efforts are being rolled out across India to strengthen cooperative financial services, enhance farmer income, and promote rural development.

These initiatives, informed by Union Minister for Home and Cooperation Shri Amit Shah in Lok Sabha, reflect the Government’s commitment to transforming agricultural cooperatives into multipurpose, inclusive, and digitally empowered institutions.

News #AgriCooperatives#AgricultureFinance#CooperativeBanking#CooperativePolicy#DairyCooperatives#DigitalCooperatives#ErpForPACS#FarmersIncome#FarmersWelfare#FinancialInclusion#FisheriesCooperatives#NCDC#PrimaryAgriculturalCreditSocieties#RuralDevelopment#ShgSupport#WomenEmpowermentPACS

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