Union Home Minister Amit Shah.
Credit: PTI Photo
New Delhi: Cooperation Minister Amit Shah on Tuesday said the government will soon provide long-term finance through Primary Agricultural Credit Societies (PACS) to further empower the farming community.
Speaking at the National Federation of State Co-operative Banks Ltd (NAFSCOB)'s Diamond Jubilee Celebration, Shah also directed the National Federation of State Co-operative Banks to prioritise making PACS more viable, transparent, and modern.
The minister stressed the strengthening of the spirit of cooperation while expressing concern over the "dilution" of this spirit in state and district-level cooperative banks in many places.
"We will provide long-term finance through PACS...We will start this soon. This will further empower farmers," Shah said, addressing NAFSCOB's Diamond Jubilee Celebration.
Currently, PACS provide short-term finance to the farmers.
Urging the NAFSCOB to play a bigger role in strengthening the cooperative banking sector, Shah said its work is "not just about holding meetings and resolving problems with the RBI and government; its job is to make PACS viable, transparent and modern".
Highlighting the critical aspects of cooperative banking reforms, he pitched for strengthening Primary Agricultural Credit Societies (PACS), totalling 1.05 lakh, with only 65,000 functional.
He asked NAFSCOB to focus on implementing technological upgrades, creating opportunities for youth engagement, and focus on increasing low-cost deposits.
On expansion plans, Shah said the government aims to increase the number of district cooperative banks by 50 per cent from the current 300 in the coming years.
The minister urged NAFSCOB to conduct workshops to help PACS adapt to new technologies and recommended studying successful models like Ahmedabad District Cooperative Bank and Gujarat State Cooperative Bank.
The minister asked both state and cooperative banks to keep higher targets for deposits and annual profit from the current level by focusing on raising low-cost deposits in the local area.
Currently, district cooperative banks hold deposits of Rs 4.31 lakh crore, while state cooperative banks have Rs 2.42 lakh crore. The sector generates a combined profit of approximately Rs 4,281 crore.
Shah recommended studying successful models like Ahmedabad District Cooperative Bank and Gujarat State Cooperative Bank as benchmarks for improvement.
Outlining the Modi 3.0 government's approach, Shah stressed that the cooperative sector must "move ahead and work at full speed" while maintaining a balanced approach to structural and legal challenges.
A common software in eight languages has already been implemented to seamlessly link state and district cooperative banks with NABARD, signalling the government's commitment to technological transformation.
There are 34 state cooperative banks, 352 district cooperative banks and 1.05 lakh PACS in the country.