Understanding PACS and Credit Societies

Questions and Answers

What is the target percentage for RCBs' share in agricultural credit by FY2047?

60%

30%

50%

40% (correct)

What was the current share of RCBs in agricultural credit before the targeted increase?

10%

15%

11% (correct)

Which society is NOT mentioned in relation to the cooperative structure in agriculture?

FSS

NCDC (correct)

PACS

LAMPS

What is the purpose of the outlined increase in RCBs' share in agricultural credit?

To ensure equitable growth in agriculture Signup and view all the answers

What is anticipated to happen by the year 2030 concerning RCBs’ share in agricultural credit?

It will increase to 20% Signup and view all the answers

What was the primary purpose behind the formation of dairy cooperatives in India?

To enhance the bargaining power of small-scale milk producers Signup and view all the answers

What significant impact did dairy cooperatives have on India's milk production?

Turned India from a milk-deficient to a milk-surplus country Signup and view all the answers

Which notable leader encouraged the establishment of dairy cooperatives to assist farmers in Gujarat?

Sardar Vallabhbhai Patel Signup and view all the answers

What percentage of global milk production does India currently contribute?

24% Signup and view all the answers

Prior to the formation of dairy cooperatives, how were milk producers affected by the market system?

They were often exploited by middlemen and contractors Signup and view all the answers

What was the role of Morarji Desai and Tribhuvan Das Patel in the establishment of dairy cooperatives?

They assisted in organizing farmers into cooperative societies Signup and view all the answers

In which state did dairy cooperatives particularly emphasize milk processing and federation?

Gujarat Signup and view all the answers

What transformation was referred to as the ‘White Revolution’ in India?

The development of dairy cooperatives Signup and view all the answers

Which state has the highest cooperative membership as a percentage of total population?

Kerala Signup and view all the answers

What is one of the core mandates of NABARD?

Development of rural institutions Signup and view all the answers

Which of the following regions in India has lower cooperative membership rates compared to others?

Eastern region Signup and view all the answers

What was the cooperative membership percentage in Karnataka?

50% Signup and view all the answers

What is the estimated cooperative membership percentage in Mizoram?

4% Signup and view all the answers

What action has the government taken for the gram panchayats not covered by a PACS?

Establish a cooperative society in each Signup and view all the answers

How many gram panchayats in India are not covered by a PACS?

18,497 Signup and view all the answers

Which of the following is NOT a part of NABARD’s role in the cooperative sector?

International advocacy Signup and view all the answers

Which two southern states are mentioned regarding high cooperative membership?

Kerala and Karnataka Signup and view all the answers

Which of the following represents NABARD's supervisory role?

Overseeing cooperative management standards Signup and view all the answers

What is one of the fundamental principles of the cooperative movement?

Cooperation amongst Cooperatives Signup and view all the answers

What does NABARD conduct to ensure the proper functioning of supervised entities?

Periodic inspections Signup and view all the answers

What was the purpose of the pilot project launched on NABARD Foundation Day?

To promote financial transactions between cooperatives Signup and view all the answers

Which area was involved in the pilot project promoting 'Cooperation amongst Cooperatives'?

Banaskantha and Panchmahal in Gujarat Signup and view all the answers

What was the outcome of the pilot project related to 'Cooperation amongst Cooperatives'?

The campaign was expanded to all districts of Gujarat. Signup and view all the answers

What is one goal of increasing cooperation among different types of cooperative institutions?

To strengthen the cooperative movement Signup and view all the answers

When was the campaign for 'Cooperation amongst Cooperatives' launched across Gujarat?

15 January 2024 Signup and view all the answers

What is one expected outcome of promoting financial transactions between primary dairy cooperative societies and cooperative banks?

Enhanced self-reliance in the cooperative sector Signup and view all the answers

Which organizations are subject to NABARD's periodic inspections?

State and district central cooperative banks Signup and view all the answers

Which initiative is part of NABARD's strategy for developing the cooperative sector?

Promoting 'Cooperation amongst Cooperatives' Signup and view all the answers

What is one key objective of NABARD's initiatives for Rural Cooperative Banks (RCBs)?

To facilitate access to latest technologies. Signup and view all the answers

What was a major topic discussed during the National Conference on Best Practices in Rural Cooperative Banks?

Governance and business diversification in RCBs. Signup and view all the answers

Which event focused on promoting fintech engagement among Rural Cooperative Banks?

Two-day fintech workshop in Lucknow. Signup and view all the answers

What was a significant concern highlighted regarding the economy?

Growth disparities between rural and urban economies. Signup and view all the answers

What technology-related initiative is NABARD not facilitating for RCBs?

Decentralised Digital Asset Management. Signup and view all the answers

What was the purpose of the panel discussion held at the Global Fintech Festival 2023?

To explore collaboration among FinTech companies and RFIs. Signup and view all the answers

How many participants attended the National Conference on Best Practices in Rural Cooperative Banks?

About 200 participants. Signup and view all the answers

What is one likely outcome expected from the fintech workshop organized for RCBs?

Understanding of their technology needs. Signup and view all the answers

What aspect of human resource management was discussed at the conference?

Attracting and training talent for RCBs. Signup and view all the answers

During which dates was the fintech workshop for RCBs held?

11-12 March 2024. Signup and view all the answers

Study Notes

PACS vs. Credit and Thrift Societies

Primary Agricultural Credit Societies (PACS) evolved from thrift-oriented institutions to mainly provide credit, utilizing refinance rather than deposit mobilization.
Credit and thrift societies mainly rely on member savings to meet their members' credit needs.

Dairy Cooperatives and the 'White Revolution'

Dairy cooperatives were crucial in transforming India into the largest milk producer globally, contributing to 24% of global milk production.
The dairy sector accounts for over 5% of India’s GDP, highlighting its economic significance.
Initially, small milk producers lacked bargaining power and were at the mercy of contractors and middlemen.
Sardar Vallabhbhai Patel advocated for cooperative societies to empower farmers against exploitation, leading to the establishment of dairy cooperatives with their own processing facilities.

Cooperative Membership in India

Cooperative membership varies significantly across states, with Kerala leading at 77%, followed by Karnataka at 50%, and Mizoram at a low of 4%.
There are 18,497 gram panchayats in India without a PACS, prompting government plans to establish cooperatives in these areas.

NABARD's Role in Supporting Rural Cooperatives

NABARD focuses on the development of rural institutions, providing refinance and developmental support, along with policy and supervisory roles.
It conducts inspections of regional rural banks and cooperatives to ensure compliance and enhance performance.

Cooperation Among Cooperatives

NABARD promotes synergies by encouraging collaboration between different cooperative types to strengthen the overall cooperative movement.
A pilot project initiated in Gujarat aims to facilitate financial transactions among dairy cooperatives and cooperative banks.

National Conference on Rural Cooperative Banks

A two-day conference in Lucknow focused on sharing best practices among rural cooperative banks in governance, business diversification, and technology adoption.
Approximately 200 participants attended, with many more viewing via live stream.

Fintech Engagement Initiatives

NABARD is advancing digital banking solutions in rural areas by promoting collaboration between rural credit cooperatives and fintech companies.
Workshops and panel discussions aim to create awareness of fintech applications and technological needs within rural cooperatives.

Future Directions

Emphasis on addressing rural-urban economic disparities, aiming to raise the share of agriculture credit from 11% to 20% by 2030 and 40% by FY2047.
Stakeholders are encouraged to improve the income-generating capabilities of rural cooperatives to ensure equitable growth.

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Description

This quiz explores the distinctions between Primary Agricultural Credit Societies (PACS) and credit and thrift societies. It emphasizes their operational structures, focusing on member savings and credit distribution. Test your knowledge on the evolution and functions of these institutions.