Rapid Fire
Cooperative Stack: Integrating Rural Schemes Through PACS
- 09 Jul 2025
- 2 min read
The Government of India is developing a comprehensive ‘Cooperative Stack’, centered around Primary Agricultural Credit Societies (PACS), to streamline the delivery of welfare schemes in rural India.
- About Cooperative Stack: It is a technological framework designed to leverage digital platforms to provide services such as financial inclusion, credit access, and government subsidies directly to rural communities.
- It will adopt AI-driven technologies—e.g., automated weather advisories—to aid farmers and improve scheme implementation.
- Role of PACS: PACS are the backbone of rural credit systems in India, acting as financial intermediaries. By using PACS to distribute and implement schemes, the government ensures that benefits reach rural farmers and communities more efficiently.
- About PACS: They are basically credit societies that are registered under the Cooperative Societies Act of the State concerned.
- PACS are grassroots-level cooperative credit institutions that provide farmers with affordable loans, banking services, and agricultural support.
- They form the base of India’s three-tier cooperative credit structure, along with District Central Cooperative Banks (DCCBs) and State Cooperative Banks (SCBs).
- Out of 1.08 lakh PACS, around 63,000 are in the advanced stages of computerisation, with the government aiming to fully digitise 80,000 of them.
| Read More: Primary Agricultural Credit Societies |
