The Government of India has embarked on a transformative journey to modernize the cooperative credit structure at the grassroots level through the Computerization of Primary Agricultural Credit Societies (PACS). With an initial financial outlay of ₹2,516 crore—recently increased to ₹2,925.39 crore—this flagship project is being implemented by the Ministry of Cooperation (MoC) to bring all functional PACS across the country onto a common ERP (Enterprise Resource Planning)-based software system. This strategic move is aimed at improving transparency, operational efficiency, and service delivery to millions of rural farmers and cooperative members.
ERP for a Unified and Efficient System
At the heart of the initiative lies a common national ERP software, customized to meet state-specific needs, which covers all the credit and non-credit functions of PACS. The integration connects PACS with NABARD through State Cooperative Banks (StCBs) and District Central Cooperative Banks (DCCBs), ensuring seamless communication and real-time data sharing. This ERP system supports a Common Accounting System (CAS) and a Management Information System (MIS), greatly enhancing financial reporting, governance, and accountability within the cooperative network.
By digitizing processes such as loan disbursal, procurement, warehousing, deposits, membership management, and even public services like PDS and fertiliser distribution, the software enables faster, more reliable operations. Moreover, it minimizes transaction costs, reduces errors, and eliminates payment delays. Integration with financial tools like RuPay and Kisan Credit Card (KCC) databases ensures smooth and secure transactions for PACS members.
Multi-Layered Monitoring and Training
A multi-tiered monitoring framework has been established to ensure robust implementation. At the apex is the National Level Monitoring and Implementation Committee (NLMIC), followed by State-Level (SLIMC) and District-Level Implementation and Monitoring Committees (DLIMC). Additionally, the State Cooperative Development Committee (SCDC), led by the Chief Secretary, and the District Cooperative Development Committee (DCDC), chaired by the District Collector, oversee the progress at ground level. These coordinated efforts ensure transparency, address challenges, and maintain momentum.
Recognizing the diverse digital literacy among rural populations, NABARD provides comprehensive training and ongoing handholding support, especially targeting small and marginal farmers. This ensures that every member of the PACS ecosystem—regardless of their technological background—can adapt to and benefit from this digital transformation. Detailed training records and plans are documented.
PACS as Rural Service Hubs
Beyond credit and banking services, the project envisions PACS as multi-purpose rural service hubs. They are being empowered to function as delivery points for a wide array of government services such as Pradhan Mantri Kisan Samriddhi Kendras (PMKSK), Common Service Centres (CSCs), Pradhan Mantri Bhartiya Janaushadhi Kendras (PMBJK), fertilizer and seed distribution, LPG dealerships, and even Custom Hiring Centres for agricultural machinery.
To amplify impact, the Government is integrating the PACS ERP system with other digital platforms like the Kisan Rin Portal, creating a unified ecosystem for agricultural credit and rural service delivery.
Conclusion
The computerization of PACS is more than a technology upgrade—it is a nation-building initiative that aligns with the Government’s vision of inclusive growth and rural empowerment. With strong institutional support, modern tools, and grassroots engagement, this project is poised to revolutionize the cooperative structure and redefine rural India’s digital future.