Microfinance Focus, August 23, 2011: The Minister of State for Finance, Namo Narain Meena has today released information showing a 34 percent increase in the deposit base of Primary Agriculture Cooperative Societies (PACS) in India over the previous year. The number of loans issued has also increased by 27 percent during the same period.

Primary Agriculture Cooperative Societies which are affiliated to District Central Cooperative Banks and State Cooperative Banks were having a deposit base of Rs.26, 245 crore as on Mar 31st , 2009 that increased to Rs.35,286 crore as on march 31st 2010. During this period, the loans issued by PACS increased to Rs. 74,938 crore from Rs.58, 787 crore.

According to Dr. Rangarajan Committee Report on Financial Inclusion (2008), the reach of rural cooperatives in terms of number of clients and accessibility is better but the health of a very large population of rural credit cooperatives has deteriorated significantly.

As a part of its financial inclusion plan, Government of India has decided to provide appropriate banking facilities to habitations having population in excess of 2000 (as per 2001 census) by March, 2012.

Accordingly, 73,000 such habitations across the country have been identified and allocated to Public Sector Banks, Regional Rural Banks, Private Sector Banks and Cooperative Banks for extending banking services by using the services of Business Correspondents and other models, with appropriate technology back up by March, 2012.