Parliament Question: PACS Modernization

GOVERNMENT OF INDIA MINISTRY OF COOPERATION LOK SABHA UNSTARRED QUESTION NO. 1516 TO BE ANSWERED ON 28th July, 2026 PACS Modernization †1516. Shri Vijay Baghel:

Will the Minister of COOPERATION (सहकारिता मंत्री) be pleased to state:

(a) whether the Government is aware of the fact that despite computerization, Primary Agricultural Credit Societies (PACS)/Seva Sahakari Samitis are still maintaining various manual registers for the distribution of agricultural loans, seeds and fertilizers to farmers making it a slow and time-consuming process that forces farmers to spend an entire day at the society to avail these services;

(b) whether the Government proposes to resolve this issue by adopting a modern banking system-based approach involving only online data entry, record verification, and Aadhaar- based authentication; and

(c) if so, the details of the action plan formulated by the Government to resolve the aforementioned problems faced by the farmers? ANSWER MINISTER OF COOPERATION सहकारिता मंत्री (SHRI AMIT SHAH)

(a) to (c) : To overcome the problem of manual registers for loan distribution and agricultural inputs, PACS Computerisation Project was launched in 2022 and one of the main objectives of the Project is to resolve this issue by enabling PACS to carry out their business operations through the ERP-based Common National Software. This enables facilitation of online maintenance of records, transparent accounting, seamless reconciliation with District Central Cooperative Banks (DCCBs) and State Cooperative Banks (StCBs), faster loan processing, reduction in transaction costs and improved service delivery to members.

The project also provides hardware, including computers, printers, webcams and biometric devices, along with secure connectivity to facilitate digital transactions. Aadhaar- based authentication or e-KYC, wherever required, is carried out in accordance with the applicable guidelines of the concerned States/UTs authorities and the provisions of the respective schemes and banking regulations.

Page 1 of 2Under the Centrally Sponsored Project for Computerisation of PACS, the Government has taken the following measures to facilitate digital functioning of PACS to

resolve the aforementioned problems:

(i) A common ERP-based National Software has been developed and deployed for computerisation of functional PACS. The software provides integrated modules for membership management, loan operations, deposits, fertilizer and seed distribution, inventory management, accounting, audit, MIS and other business activities.

(ii) Legacy data of PACS has been digitized and migrated to the ERP platform to facilitate digital record management, improve transparency and reduce dependence on manual record keeping.

(iii) Training and handholding support have been provided to PACS functionaries and other stakeholders for effective adoption and utilization of the ERP software.

(iv) The ERP software facilitates integration with District Central Cooperative Banks

(DCCBs), State Cooperative Banks (StCBs) and other digital platforms, enabling seamless banking operations and digital service delivery.

(v) The software incorporates State-specific business requirements and operational processes through continuous enhancements and customization based on feedback received from States/UTs and other stakeholders.

(vi) The implementation of the Project is regularly monitored through periodic review meetings with States/UTs, NABARD, System Integrators and other stakeholders to improve adoption of digital transactions and effective utilization of the ERP software.

The above measures under the Centrally Sponsored Project for Computerisation of PACS enables faster and transparent working resulting in faster provision of services. ***** Page 2 of 2