Economics • Banking & FinanceMedium
Analyze the functioning of Primary Agricultural Credit Societies (PACS) at the village level in Haryana. What is their primary operational role within the rural financial architecture?
A. To disburse short-term and medium-term crop loans directly to farmer members and distribute agricultural inputs✓ Correct Answer
B. To formulate the national monetary policy and adjust the repo rate bi-monthly
C. To underwrite corporate Initial Public Offerings on international stock exchanges
D. To manage foreign direct investment inflows into high-tech defense manufacturing
💡 Solution & Explanation
Primary Agricultural Credit Societies form the base tier of the short-term cooperative credit structure in Haryana, providing immediate crop loans, fertilizers, and seeds to rural farmers at the grassroots level. They operate on cooperative principles of mutual help and democratic management under the supervision of district central cooperative banks. Strengthening PACS has been a major policy push to enhance financial inclusion and eliminate predatory informal moneylenders.
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