Agricultural Lending Schemes: A study on primary agriculture co-operative credit societies (PACS) In Karnataka

Cooperative Societies can be defined as autonomous associations of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly owned and democratically controlled developing agricultural country, such as India.The Cooperative Credit Societies Act of 1904 led to the formation of Cooperative Credit Societies in rural and urban areas.The Act was based on the recommendations of Sir Frederick Nicholson (1899) and Sir Edward Law (1901).Their ideas were based on the patterns of Raiffeisen and Schulze.The Cooperative Societies Act of 1912 further recognised the formation of non-credit societies and central cooperative organisations to meet credit requirements for agricultural activities.The NABARD assumes crucial responsibilities for policy formulation, refinance provision, and monitoring the oversight of agricultural lending.The second tier comprises State Cooperative Banks (SCBs), which focus on policy implementation, sanctions, and monitoring.The third tier consists of District Central Cooperative Banks (DCCBs), which handle sanctions, recommendations, monitoring, and field support.Primary Agricultural Credit Societies (PACS) are essential for enhancing access to credit and fostering financial inclusion in rural regions, especially within farming communities.