Economics • Banking & FinanceMedium
In the context of financial inclusion in Himachal Pradesh, what role do Primary Agricultural Credit Societies (PACS) play at the grassroots village level?
A. They function as international merchant banking syndicates.
B. They provide short-term cooperative credit, fertilizers, and essential consumer goods directly to rural farmers.✓ Correct Answer
C. They regulate monetary policy interest rates for commercial banks.
D. They manage foreign direct investment inflows into heavy industries.
💡 Solution & Explanation
Primary Agricultural Credit Societies operate at the village level as the foundational units of the short-term cooperative credit structure, supplying timely crop loans and agricultural inputs to farmers. They do not formulate macroeconomic monetary policy, which remains the exclusive mandate of the central central bank. Computerization of PACS has further streamlined rural credit delivery across the state.
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