New Delhi 22 Oct (KNN) In efforts to digitize and modernize over 97,000 Primary Agriculture Cooperative societies (PACs), the Union Cooperation Ministry is currently formulating a new scheme.

The estimated budget for the scheme is INR 2000 crore to INR 3000 crore, which will be allotted across the country for over the next five years.

PACs are the banks which are located in rural area and have a significant role in rural credit system by performing their activities on co-operative principles.

These banks work under the District Credit Co-operative Banks.

They provide short term and medium term loan to rural people to meet their financial requirements. But, the rural people still depend on unorganized sources such as money lenders in village, mandies, traders etc.

So, various measures taken by Government to reduce these unorganized sources through the establishment of PACS in rural areas. In order know the role of PACS in agricultural development in India the study has been undertaken.