Highlighting the crucial role played by the cooperative sector in the country’s development path, the Economic Survey 2024-25 noted that the cooperative societies are promoting financial inclusion, particularly by extending credit to farmers and small entrepreneurs who frequently encounter barriers when accessing conventional banking services.
“To strengthen the cooperative sector, the Indian government has implemented various strategic initiatives. These include the introduction of Model Bye-Laws specifically for Primary Agricultural Credit Societies (PACS), designed to provide a structured framework for their operations. Additionally, the government has prioritised the computerisation of PACS to enhance efficiency and transparency. There is also an ongoing effort to establish new multipurpose PACS and dedicated dairy and fishery cooperatives, which serve diverse community needs. Another key focus is the transformation of PACS into Common Service Centres (CSCs), which are intended to provide services beyond financial assistance,” it noted.
Other noteworthy measures aimed at enriching the cooperative landscape include the establishment of retail petrol and diesel outlets and the setting up of micro-ATMs within cooperative societies to facilitate easier access to banking services. Moreover, the issuance of RuPay Kisan Credit Cards specifically for dairy cooperatives aims to improve the financial capabilities of these entities and their members. The achievements of these initiatives are significant. Over 9,000 new PACS, dairy, and fishery cooperatives in underserved panchayats have been established, the survey noted.
The survey said the government’s push for greater accessibility was visible as 240 PACS have applied for retail petrol and diesel outlets, with 39 currently selected to operate, thus expanding their service offerings. Furthermore, a substantial number—35,293 PACS—are now functioning as Pradhan Mantri Kisan Samriddhi Kendras (PMKSK), which are dedicated to providing essential fertilisers and related services to farmers, directly impacting agricultural productivity. Further, 1,723 micro-ATMs have been distributed, facilitating doorstep financial services and enhancing accessibility for citizens in rural India.
