NABARD to Digitise PACS in Jharkhand

• 08 Sep 2025

Why in News?

The National Bank for Agriculture and Rural Development (NABARD) has announced that it will computerise 1,297 Primary Agriculture Credit Societies (PACS) in the state as part of the second phase of its digitisation drive.

Key Points

• Background: The Ministry of Co-operation’s Centrally Sponsored Project on Computerisation is working to transform PACS into hubs of economic and social activities in rural areas.
  • The state has a total of 4,454 PACS, which act as grassroots-level cooperative credit institutions serving rural communities. 
  • In the first phase of the project, NABARD successfully computerised 1,500 PACS. 
• Features of Computerised PACS: The modernised PACS are being equipped with both hardware and specialised software, ensuring integration with the national grid.
  • This will enable them to provide a wide range of services, including:
    • Implementation of government schemes such as the Pradhan Mantri Fasal Bima Yojana (PMFBY) and direct benefit transfers.
    • Distribution of agricultural inputs like fertilizers and seeds.
    • Operation of Jan Aushadhi Kendras, petrol and gas dealerships, and customer service centers.
    • Establishment of rural godowns for storing agricultural produce.

• NABARD’s Role: NABARD has set up a ₹100 crore fund under the Rural Infrastructure Development Fund (RIDF) to aid the construction of storage facilities and related infrastructure. 
  • As the nodal agency for PACS computerisation, NABARD is also responsible for:
    • Training staff in using the new digital systems.
    • Providing ongoing technical support.
    • Facilitating infrastructure development.

National Bank for Agriculture and Rural Development (NABARD) 

• NABARD is a development bank that primarily focuses on the rural areas of the country. It is the apex banking institution for providing finance for agriculture and rural development. 
• It is a statutory body established in the year 1982 under the National Bank for Agriculture and Rural Development Act, 1981. 
• Its headquarters is located in Mumbai, the financial capital of the country. 
• Apart from agriculture, it is responsible for the development of small industries, cottage industries, and rural projects. 

Primary Agricultural Credit Societies (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.