PACs embracing ERP in digitization drive

Digitizing Agri Credit

♦ Out of 1.05 lakh PACS, 25,904 have been onboarded on ERP

♦ PACs spread over 27 States and UTs

♦ CoopMin sanctioned 67,009 proposals for computerisation of PACS

♦ Proposals came from 30 States, UTs.

New Delhi: More than 25 per cent of primary agricultural credit societies (PACS) have been onboarded on Enterprise Resource Planning (ERP) software. The onboarding is part of the process of bringing all functional PACS onto the ERP-based common national software.

This, official sources told Bizz Buzz, will link them with the National Bank for Agriculture & Rural Development (Nabard) through state co-operative banks (StCBs) and district central cooperative banks (DCCBs). Nabard developed the national level common software for the project. Out of 1.05 lakh PACS, 25,904 have been onboarded on ERP software in 27 States and Union Territories. The Union Ministry of Cooperation sanctioned 67,009 proposals for computerization of PACS. The proposals came from 30 States and UTs.

The Ministry of Cooperation has already released Rs654.23 crore to the States and UTs concerned. The ministry has made a total financial outlay of Rs2,516 crore for the computerization project of functional PACS.

Maharashtra has received the maximum amount, Rs121.59 crore, for 12,000 PACS. The next is Rajasthan with Rs67 crore for 6,781 PACS. Andhra Pradesh has received Rs18.67 crore for 2,037 PACS.

Onboarding on ERP software will enable PACS to diversify their business activities by undertaking more than 25 business activities like dairy farming, fisheries, floriculture, setting up godowns, and procurement of foodgrains, fertilizers, and seeds. It will also assist them in getting short- and long-term credit. It will also help them at custom hiring centers, common service centers, and fair price shops and in community irrigation.

The ERP-based common national software brings about efficiency in PACS’ performance through the Common Accounting System (CAS) and the Management Information System (MIS), the sources said, adding that governance and transparency in PACS also improves.

This leads to speedy disbursal of loans, lowering of transaction cost, reduction in imbalances in payments, seamless accounting with DCCBs, and StCBs. It will enhance trustworthiness in the working of PACS among farmers.