Primary Agricultural Credit Society -
October 2nd, 2010
The co-operative movement was started in India largely with a view to providing agriculturists funds for agricultural operations at low rates of interest and protect them from the clutches of moneylenders. The organization of the co-operative credit for short period may be briefly outlined as follows:
A co-operative credit society, commonly known as the primary agricultural credit society (PACS) may be started with ten or more persons, normaly belonging to a village. The value of each share is generally nominal so as to enable even the poorest farmer to become a member.
The members have unlimited liability, that is each member is fully responsible for the entire loss of the society in the event of failure. This will mean that all the members should know each other intimately. The management of the society is under an elected body consisting of President, Secretary & Treasurer.
The management is honorary, the only paid member being normally. Loans are given for short periods, normally for one year, for carrying out agricultural operations, and the rate of interest is low. Profits are not distributed as dividend to shareholders but are used for the welfare of the village.
In the construction of a well, or maintenance of a school, and so on. The usefulness of the primary credit societies has been rising steadily. In 1950-51, it advanced loans worth Rs.23 crores; this rose to Rs. 200 crores in 1960-61, and to Rs. 4200 crores in 1988-89.
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