Q. Consider the following statements about the Primary Agricultural Co-Operative Society (PACS):

1. They function under the district central cooperative banks (DCCBs)
2. They are registered under the Co-operative Societies Act and regulated by the RBI
3. They provide loans to their members only

Which of the above statements is/are correct?
Answer: 1, 2 & 3
Notes: The co-operative banks in India play an important role in rural financing. The Primary Agricultural Co-operative societies are registered under the Co-operative Societies Act and are regulated by the RBI. These are governed by the “Banking regulation Act-1949” and Banking Laws (Co-operative societies) Act 1965. A co-operative credit society, commonly known as Primary Agricultural Co-operative Society (PACS) may be stated with 10 or more persons, normally belonging to a village. The working capital of the PACS derived mainly from borrowings from Central Co-operative Banks (CCBs) and the small proportion from owned funds and deposits made by group of peoples. The value of each share is generally nominal so as to enable even poorest farmer to become a member. PACS provides loans only for medium and short term loans to its members only.

This question is part of UPSC Daily 20 MCQ Series Course on GKToday Android app.