Model Bye-laws for PACS: Adoption to expand business activities and improve governance/inclusiveness
States and Union territories adopt Model Bye-laws for Primary Agricultural Credit Societies to widen activities and improve governance
- PACS are grassroots cooperative institutions in the rural short-term credit structure and are important for local credit delivery and related services.
- The Ministry of Cooperation prepared and circulated model bye-laws for PACS after consultation with States, Union territories, and cooperative federations and banks.
- The model bye-laws are designed to enable PACS to undertake more than 25 business activities and to improve governance, transparency, and accountability.
What happened
The Ministry of Cooperation has circulated Model Bye-laws for Primary Agricultural Credit Societies (PACS) after consultation with States, Union territories, and cooperative federations and banks at the national and State level. The model bye-laws are intended to help PACS expand their business role and improve governance standards.
According to the Ministry of Cooperation, the model framework allows PACS to undertake more than 25 business activities. The release also says that the bye-laws are designed to improve transparency, accountability, and membership inclusiveness.
UPSC can ask about the role of Primary Agricultural Credit Societies in rural credit delivery, the governance problems in cooperatives, and the policy case for broader and more inclusive bye-laws that strengthen accountability while expanding business functions.
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